As the old saying goes" the trend is your friend" is still true to this day and will most likely always be true. The reason behind that is if the market is continuing to make higher highs and higher lows why would you bet against it? There isn't a reason unless you are doing so on a short term basis or specifically a counter trend trader.
At Gorilla Futures every day and every week we go over our top down analysis in either a stream or a video format that is sent to your inbox. There reason behind this is we like to follow the higher time frames due to the fact we are trend traders for the most part.
This means we like to stack time frames in our favor. For example if the monthly,weekly,daily and hourly chart are all moving up it would be safe to say the overall trend is moving up or bullish. Why would I then go and take a short and most likely get run over by the bulls? You wouldn't and this is what makes trend trading so popular and potentially rewarding.
If 90% of the market participants are looking for longs there is no reason to take shorts, now there are some cases where we might look for shorts in a strong bull market or when price is near all time highs, but for the most part we always look to follow the overall trend.
Now what do we mean when we say "trend"? A trend is the overall direction of a market or an asset's price. In technical analysis, trends are identified by price action that highlight when the price is making higher highs and higher lows for an uptrend, or lower lows and lower highs for a downtrend.
This basic principle can be applied to every asset class from Crypto to Futures and everything in-between.
At Gorilla Futures we are big fans of the tick chart and we use this same principle throughout our trading and our course. We look to find trends and exploit areas of turning or continuation in the hopes of realizing a profit.
By using the overall trend combined with a few key entry signals we can trade all time frames and all asset classes. This is all possible because we are trend traders and look to ride the coat tails of larger market participants such as banks or large funds.
These larger players can help move the markets allowing smaller retail traders the ability to jump in on the overall moves. This among hundreds of other reasons are why we like to trade with the overall trend.
There is no reason for retail traders to try and stop a a huge bull train moving up by taking a small short position, instead traders need to know when to jump on the train and when to jump off.