The Trend Day Trading Pattern
The trend day trading pattern occurs following an exhaustion trade. The market must first form an exhaustion trade. The exhaustion trade sometimes has additional risk if it is a test of a high or low. The trend trade is looking to take advantage of the new trend. You may have not taken the exhaustion trade due to the risk, or exited the exhaustion trade for a profit. The definition of the pattern is that after trading at the blue countertrend zone, the market then trades at intermediate support resistance. This was the original description of the eSignal trend trade. The difference between the Ninja version and the eSignal version is the additional filter of the exhaustion trade. The “out of the box” trade will be a trend trade with all of the filters except the preceding exhaustion trade.
In this trade we use the tick filters again in the setup. We have a lower low $TICK of -308 and a lower higher $TICK of 55 at the zone. There was just 2 ticks of adverse excursion, and a total risk of 6 ticks. Notice that the trade that followed was an out of the box trend trade that probably would have been passed on. This was because as the price was approaching the zone, there tick filter was hit with a 311. That is unfortunate, because the market had made a lower low of -451 going into the trade.
Notice how the above picture of the bond market is just as responsive to ZoneTraderPro. The bonds were trading at intermediate support when the Trend Day Trading pattern formed. The bonds fell which should be bullish for the ES. It was not. The ES traded sideways at their intermediate support then fell to the target zone. ZoneTraderPro painted the target 2 minutes before price actually traded at the price.
The ES out of the box trade then occurs as the bonds trade at countertrend support, and we get another 3 point trade.