We've all heard the famous trading mantra - "The Trend is Your Friend". But it is often impractical for traders to be manually scanning a long list of currency pairs to find tradable candidates. Traders need a systematic tool they can use to quickly locate trending pairs.
WELCOME TrendTrader Plus, a proprietary educational and trading resource available exclusively from Forexmentor. Our objective for this site is to provide you all the information you may need in order to determine whether TrendTrader Plus is right for you. We hope that you will find answers to any questions you might have. If there is anything else you are wondering about, please feel free to contact us. If you have recently joined us with a monthly subscription, please click here to log in to access the member’s site immediately.
What Is It All About?
TrendTrader Plus is a robust trading methodology designed to help you identify and exploit strongly trending Forex markets. (Having said that, the methodology is easily adaptable to virtually any highly liquid markets including futures, indexes, stocks, etc). Our set of tools and techniques provides a real-time, automated market screener facility which quickly and efficiently directs your attention only to those pairs (from amongst a screener portfolio of 27) which may be trending strongly. That feature allows you to bypass markets that may not be trending, saving you much potentially wasted time and effort.
TrendTrader Plus also comprises a clear, rules-driven methodology for indentifying corrective dips against the uptrend or corrective rallies against the downtrend, and for identifying the specific junctures where it is expected that the market returns to trend with a so-called Momentum Push. Our trading toolkit generates signals that specifically tell you when to consider entering the trade when the top-down reading is in agreement, from Daily all the way down to 5m. The twin rationales for doing so are to time entry points well with limited risk, and to exploit markets that can be expected to generate runs of sufficient size so as to enable high Reward/Risk multiples, a critical determinant of long-term trading system Net Profitability.
Partial Screen Shot of TrendTrader Plus Real-Time Market Screening Tool:
It all begins with a proprietary, logic-based indicator (called “TTHisto”, which is short for Trend Trader Histogram) that was developed over a two year period to ensure its reliability and effectiveness. TTHisto is totally unique and you cannot find it anywhere else, as it was developed exclusively for Forexmentor. It continuously applies five different logical tests for trend, resulting in only one of three possible readings: Up, Down or Neutral. The indicator combines in certain ways between the Daily and 4hr charts to provide a so-called “anchor” trend reading: Either UP for a long-only bias, DOWN for a short-only bias, or NEUTRAL which means no actionable trading bias. Our methodology specifies that we only trade in the direction of an Up or Down anchor trend reading, never against, nor on a Neutral reading.
From there, we drill down to three specific intraday timeframes (60m, 15m and 5m) looking for an instance of a ”PRE” screen momentum reading, which may indicate corrective action on the timeframe on which a counter-trend TTHisto reading is found (i.e. in opposition to an Up or Down anchor reading). We then prepare for trade entry on either the first 5m or 15m candle close which results in a so-called “POST” screen momentum reading after the retracement is done, which is when all five of the “core” timeframes we use to structure a trade (Daily, 4hr, 60m, 15m, 5m) align in the same direction. In our experience, having the same TTHisto reading appearing concurrently on multiple timeframes top-down is the strongest indication of a trending market that is possible to attain by any means whatever, whether indicator-based or otherwise.
The trade entry overview provided in the preceding paragraph pertains to one of two methods prescribed in our six-part Foundation Course, which we refer to as a “Type 1” trade entry. We also specify an alternate methodology for entering the trade specifically by way of a Limit Entry order as price tests an identifiable Support or Resistance level in conjunction with a PRE screen result. We refer to this as a “Type 2” entry, and it is ideal for those who prefer to try to get into the trade as close to a corrective top or bottom as is possible.
A Quick Recap Analysis of A Typical TTPlus Trade: [Click to Play]
AN IMPORTANT CAVEAT: Please note that our emphasis of the TTHisto indicator in top-down configuration is not to imply that there is an indicator-only focus (the so-called “Holy Grail” phenomenon) which can - or should - take the place of sound technical analysis. We cannot stress too strongly that any and all readings of the TTHisto indicator must be vetted by the user with recourse to proper Market Flow and Support/Resistance analysis. If you are looking for an indicator to completely do all the work of trade execution for you, then you are on the wrong path, because such a thing is not possible. But where careful Technical Analysis overlaps with our top-down market screener methodology, odds improve that you are looking at a high-probability trade opportunity.
How Can TrendTrader Plus Help Me?
TrendTrader Plus can help you in numerous ways, including the following:
1. Improving your accuracy in identifying a strongly trending market.
Our “anchor” trend reading method based on the TTHisto technology, validated with simple Market Flow analysis which can be done literally on sight, serves to confirm the “classic look” of a trending market – a sustained progression of either lower lows and highs for a bearish bias, or higher highs and lows for a bullish bias. Such market conditions allow you trade in the “path of least resistance” for maximum chances of success.
2. Helping you efficiently screen amongst multiple pairs.
Most of us have one or more “favourite” pairs that seem to provide us more of the kind of trading opportunity we desire over time. And yet, there is no one pair, or even a small subset of 2-3 preferred pairs, which can be expected to always provide a tradable opportunity each and every time we sit down to trade. Wouldn’t it be useful to have a tool available that focuses your attention on markets that are moving relatively quickly in a specific direction, and at the same time helps you avoid wasting time watching pairs that are going sideways? Our real-time TTPlus Market Screener tool (available in our member’s site) does exactly that!
3. Drawing your attention to the specific timeframe on which a retracement is underway.
When you have a counter-trend TTHisto reading on one of the three intraday timeframes (against an intact anchor trend reading), you have an indication as to the likely size and scope of a retracement which may be expected to resolve to trend with a Momentum Push. Sometimes it might be microscopically small on a single bar reading on the 5m chart; other times it might be a much larger correction on the 60m chart that spans a time-span of many hours. It’s never easy to predict how long a retracement will last or how far it will travel, but the specific timeframe on which a counter-trend reading occurs provides you a real-time confirmation either way. Once the corrective reading resolves trend on all five core timeframes concurrently (particularly if you can confirm it with a preceding Support/Resistance event), you have a potentially powerful confirmation that the market is returning to trend with robust momentum.
4. Timing your entry into a Momentum Push that occurs when a retracement is over.
When a “PRE” screen reading (captured on a pair-by-pair basis in the real-time Market Screener tool in our member’s area) yields to a “POST” screen, validated by careful Market Flow and Support/ Resistance analysis, you have a potentially actionable trade entry signal. While it is true that not every signal occurs in a manner that provides prompt floating profit with little or no drawdown, it is also true that fast continuation moves are better and more accurately signaled by the logic-driven TTHisto reading top-down, as compared to often lagging and/or confusing off-the-shelf indicators. In any event, the primary intention of our trade entry methodology is to position ourselves in the direction of the dominant trend, just at the point where corrective action resolves to trend, a reversal that can often be powerful and fast-moving.
5. Providing you clear-cut, relatively “mechanical” rules for trade entry and risk management.
So many trading systems and approaches sound just great in terms of their general intention or underlying philosophy, but when it comes time to figure out how to actually implement them for the purpose of making real-time trading decisions, one realizes that there are “holes” or “gaps” or just generally questions left unanswered that the trader needs to know. That is not the case with TrendTrader Plus. We have a clear and specific means of prioritizing markets, we have a clear and specific means of determining which side of the market represents your trading bias for those pairs, we have a clear and specific sequence of events which must occur to trigger you into the trade. Nothing, in short, is left to “wishy-washy” indecision when it comes to understanding how to structure and execute a trade using the TrendTrader Plus methodology.
6. Focusing your attention on trade opportunities that offer high Reward/Risk potential.
Counter-trend scalping is a perfectly legitimate trading approach that some people prefer. But the inherent difficulty with a method that is designed to enable only a 5, 10 or 15-pip win is that the only way to make and keep a long-term aggregate Net Profit is by achieving an unusually high Win/Loss ratio. If you risk 20 pips to make 10 pips every single time, then you cannot afford to lose more than about 20-30% of the time. By contrast, with a focus on a trending market – and trading only in that direction – you can expect moves that offer Reward/Risk potential of 3:1 or better, which allows you to more easily absorb the inevitable string of several losses in a row (it happens to all of us sooner or later!) without significant psychological or financial detriment. The TrendTrader Plus methodology can’t specifically promise this outcome, but it certainly is designed to focus on it.
7. Keeping you on the sidelines for pairs that are not trending and thus harder to trade.
One of the nice things about the TrendTrader Plus market screener tool is that it not only tells us which pairs to focus our attention on, but also which ones to ignore. For example, if there is no anchor trend reading available for a certain pair, it might be because a 4hr retracement is still in progress, which given the size and scale of the corrective move, requires a stronger confirmation signal as compared to lower timeframes that the top or bottom is in and price is returning to trend. Or price action might simply be flat or consolidating or rangebound on one or more timeframes. During times like these, it simply not possible to “trend trade”, and the TTHisto indicator is very responsive to signaling such conditions.
8. Encouraging a “single-minded” focus on approaching the market the same way every time.
With our methodology, there are only two types of trade entry possible: “Type 1” (which the real-time top-down momentum confluence signals) and “Type 2” (using TTHisto counter-trend readings to help identify specific reversal levels at which Limit Entry buy/sell orders can be placed). That is a lot easier than having dozens of candle reversal patterns or chart patterns or adaptive techniques to have to worry about. To be able to approach the market the exact same way every time precludes the tendency many traders have of flitting about from system to system, not to mention the erratic results which can occur from that.
9. Drawing your attention to the timing of specific corrective Support/Resistance events.
It is uncanny how often a retracement on the lower intraday timeframes is signaled by the TTHisto indicator, and how often it is that an identifiable Support/Resistance level (an Old High or Low, a Fibonacci retracement or extension, or a pivot – or some combination thereof) which marks a corrective top or bottom stands out more clearly while this “PRE” screen status is intact. If you plan to use the Limit Entry (“Type 2”) method of trade entry (explained in our Foundation Course), you will find it a much easier task to identify the candidate level while the TTHisto reading is counter-trending on one or more lower intraday timeframes.
10. Serving as a stand-alone system, or supplementing your own methods.
There is absolutely no reason whatsoever why one cannot use the TrendTrader Plus methodology on a completely stand-alone basis. In fact, we recommend that users not overlap our unique top-down indicator configuration with others, which can result in confusion, conflicting signals, and possible “analysis paralysis”. But if you work with any chart pattern based methodology and you have a strong affinity for it, or you simply want to confirm a higher level trend bias you want to trade in the direction of, there is no reason why you cannot use TrendTrader Plus as a powerful and useful supplement to those methods.
For Whom Is TrendTrader Plus Recommended?
TrendTrader Plus will be of interest to traders of intermediate degree of experience or higher (minimum one year studying and/or trading Forex so as to understand essential elements of chart reading, Forex order execution, etc.) who are in want of a clear, concise methodology for trading in the direction of a strongly trending market, including usage of a leading-edge momentum indicator and related market screener resources. An emphasis on how the technical tools specifically enable identification of Forex pairs on which to seek high-probability trade opportunities (while avoiding the time wasted in looking at low-priority pairs that are not trending clearly) will appeal to those who may find themselves feeling “lost” or confused when trying to figure out which pairs to trade in real-time, and why.
Put simply, TrendTrader Plus is designed for traders who:
- Like the idea of trading with the trend but find themselves in need of an objective means of identifying and defining “trend”.
- Need additional help in identifying corrective action for the purpose of preparing for a continuation move – the corrective dips in the uptrend or corrective rallies in the downtrend.
- Can see the benefit of using an automated market screener to focus attention on high-probability pairs and avoid time wasted watching non-trending pairs.
- Want a real-time entry signal methodology that is unique, leading-edge and differentiated from the “same old, same old” lagging signals like Moving Average crossovers and MACD or Stochastics signal line breaks.
- Desire a methodology that allows them to bypass, if desired, discretionary chart annotations like Fibonacci retracements, or chart pattern analysis, or sometimes confusing and overlying complex methods like “wave counting”.
- Want to specifically position themselves in the direction of higher Reward/Risk trade opportunities (as compared to styles like counter-trend scalping, that generate low Reward/Risk multiples).
How Is TrendTrader Plus Different From the Competition?
Our methodology is predicated on the concept of top-down momentum. In other words, what we’re most focused on is not just finding a trending market, but also the “all clear” condition on multiple timeframes where we can enter the trade in the direction of trend while avoiding corrective moves on lower timeframes which could be specifically stop-triggering if care is not taken to navigate around them. While many trading methods talk about reversal patterns or entry signals or trend readings, few of them specifically address the important fact that a trend on one timeframe is not necessarily the same as a trend on another. Our top-down application of the TTHisto indicator can be thought of as a “fractal momentum” indicator, which means that we’re looking for a trade where a smaller retracement resolves to a higher-level trend, and there is no further corrective move expected before we can remove risk from the trade. Very few, if any, trading methods on the market today specifically enable this convenient and logical means of implementing the concept of “Top-Down Analysis”.
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