Lately traders have been faced with a new type of market, one that continues to move up even though many believe price is over extended.
This can present a new type of issue for traders who have never had to trade a market that has been stuck at all time highs for an extended period of time or never traded a market that keeps making new all time highs.
Not to mention a market that is operating on below average volume, this week we are going to look at a few items that could help when trading at all time highs.
The best rule of thumb we use at Gorilla Futures is to simply follow the trend as close as possible. As day traders we are in a unique position as we really shouldn't care where the market is moving just that the market is actually moving.
Day traders need a certain amount of movement to get in an out or trades throughout the day, this could be bearish/bullish movement but as long as price is moving traders could potently take trades. Once price does get moving we like to stick with the overall trend. This means we use a top down approach and try to line up as many time frames as possible in our favor.