Trade an intraday hook to safe profits

摘要

A strong uptrend is marked by higher lows, a strong downtrend by lower highs. By following strict yet simple rules, a bond trader can ride a strong trend and limit risk. The key is in recognizing the early warning signs of a new trend.rnSometimes trading is like deep-sea fishing; it takes a strong hook to reel in a big fish. "Safe profits: Trade an intraday stair" (Futures, June 2009) discusses one technique that relies on a strict definition of a trend. An uptrend is broken down as a series of consecutively higher lows (like an ascending staircase). Go long when you see higher lows. A downtrend is defined as a series of consecutively lower highs (like a descending staircase). Go short when you see lower highs. This trading strategy is best suited to swing and day-traders.