Trend Following – Stop Management

logo-title – TRADING FUTURES INDICATOR ACTION

Section 3 – Trend Following – Stop Management Indicators.

  • TFiA Scalper
  • TFiA Trail

What is TFiA Scalper?

TFiA Scalper stays with the direction of the trend to find swing breakouts.

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In the above screenshot, the indicator shows the bars in red with the background also changing to red to assist the traders in staying in the direction of the market. The traders at the Trading in Action trading room will often look for trades in only one direction; as they have been alerted to a trend change based on the TFiA Scalper indicator.


What is TFiA Trail?

TFiA Trail is both a trailing strategy and an entry strategy.

It is based on the ATR indicator, which provides the degree of price volatility. The ATR, (Average True Range) indicator will show a higher ATR for stocks experiencing a high level of volatility, and a lower ATR for stocks with a low volatility. The indicator does not provide an indication of the price trend, simply the degree of price volatility.

It is also mirrors the Measured Move Theory, which in essence is a forecast of the upcoming price movement after a chart event, including completion of a pattern. The size of a move after a pattern is usually proportional to the size of the pattern.

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By utilising the TFiA Trail indicator, traders are able to:

  • Stay in trades longer.
  • Extract the maximum profit possible from trades.
  • Stay with the direction of the market on scalp trades.
  • Put stops in strategic places.
  • See a true reflection of the risk before placing a trade. Traders can step aside if the risk is too great.