Introducing Secondary Trend setups
In this article, we are going to introduce Secondary Trend setups, but before that, we need to give a brief explanation about trading structures.
Two structures can be used in trading plans. The first structure, which is also called Primary Trend, is actually the main trend and the general course of the market. For example, when the trend in the Primary Trend is upward, it is better for us to look for buying setups. This is because we can enter the transaction along with the movement of the market and not swim against the direction of the water!
The second structure is the Secondary Trend, which is located in the Primary Trend and is actually a shorter-term trend. Secondary Trend is sometimes in the direction of the Primary Trend, in which case we are taking a movement, and sometimes it is against the Primary Trend, which is called a correction. You can understand this concept better in the image below.
As you can see in the image above, we are in an upward trend in the daily time frame (Primary Trend). But in this upward trend, smaller one-hour trends (Secondary Trend) can also be seen, which are sometimes upward and sometimes downward. Areas marked in red are market reversal areas.
Secondary Trend setups
<<enter the trade if P2 failed>>
In this setup from the set of Secondary Trend setups, waiting for the price to cross the new P2, then we enter the transaction in return to this area. It should be noted that in this setup, you can also enter the transaction with Stop (Buy-Sell) order.
<<enter the trade if P3 fails>>
In this setup from the set of Secondary Trend setups, when the P3 is broken and the candle close happens, we can enter the trade when the price returns to that area. The stop loss of this trade is placed behind P2.
One point about this setup is important and you should pay attention to it, and that is the higher risk of this setup. This is due to the uncertainty of the process and its assumption. If you are not familiar with the concept of definiteness or indeterminacy of the trend, first watch the trend concept video.