Trade the Trend - following major resitence levels.

The month of February ended very volatile as expected. We had lots of buying and selling opportunity and capitalized on the large trend swings. We now look forward to the month of March and it should prove to be interesting as we continue to test the new highs of the year.

The 1 hour chart shows us that we broke through the major resistance in the 2760 to 2770 range. This is what we expected going into this trade following the breakout of the previous day. One of the rules is to not pick bottoms and follow the trend until it is confirmed to have reversed.

The 5 minute chart shows how we started to build our positions last night and into the morning. The profit position is the buy at H1 after we hit the low of day (LOD). We placed our stops a tick below the LOD. The NQ since then hasn’t tested the LOD levels and looks to continue the uptrend. We will look to add to positions on the breaks of HOD and continue building the positions as the NQ rips up. The most important thing is keeping the trade risk free (RF) and keeping your stop above avg price. The next point of interest (POI) is the highs of the year. We’ll expect major resistance at these levels and see how it plays out. We do not pick tops or bottoms.