We will always look to minimize risk in any trade. In a continuation trade you trade with the trend.

The Set Up I will show you work very well with Long Term, Short Term or Intra Day Trading. It will help you to quickly identify potential trades.

In the Training Modules I discussed the importance of the Primary Trend and how to identify your Secondary trend’s Buy Zones and Sell Zones.

The same rules still apply, but this may help to identify potential trades quickly when you trade Intra Day or Short term.
We will use a combination of Price, the RSI and the Stochastic Momentum Index to time our Execution.

1. Identify the Primary Trend – Price above the 100 mva=Bullish Trend and below 100mva=Bearish Trend

2. Wait for:

• Price tor retrace back to 100 mva
• RSI to retrace back to its 50 mid line
• Stochastic Momentum Index to give a Buy or Sell Cross

3. Very often you will also get a:

• A support or resistance Trend Line break on the Price or the RSI
• A Candle setup that will show a possible direction reversal
• Price close above or below 21 mva, I am cautious to trade on the wrong side of the 21 mva and will normally ait for price to close and confirm as buy or sell.

<span style="text-decoration: underline; color: #993300;"><strong>Advantages:</strong></span>
One of the biggest advantages for these trades is that you Initial StopLoss is very close.
Your potential loss therefore small.

<span style="color: #993300;"><strong><span style="text-decoration: underline;">Be Bold:</span></strong></span>
If you get a buy or sell signal you have to be BOLD and enter as soon as possible, if you wait one or two candles (time frames) to long, you may lose out on the easy money.

The longer you wait, your Stop Loss will get larger and your risk bigger.

I will show you some examples on the different charting packages I use.

<span style="text-decoration: underline;"><strong>Example #1:</strong></span> In the S&amp;P500 60min chart below you will see that we had 6 potential trades in 6 Days.

• Not all 6 trades would have made big bucks, but on all your initial risk was small.
• If you handled your StopLoss and Profit taking strategy correctly for an Intra Day or Short Term trade you should not have lost any money!

<a href="http://tradinghubonline.com/blog/wp-content/uploads/2015/09/28sep-setup-for-continuation-trade-chart.jpg"><img class="alignnone size-full wp-image-1521" src="http://tradinghubonline.com/blog/wp-content/uploads/2015/09/28sep-setup-for-continuation-trade-chart.jpg" alt="28sep setup for continuation trade chart" width="748" height="703" /></a>

<strong><span style="text-decoration: underline;">Example #2:</span></strong> CBOT dec15 Wheat 60 min chart. Two Buy signals in 5 days. Again Low Risk.
I have actually done these two trades, you can see the results in the Trade SpoTTer Closed Position summary

<a href="http://tradinghubonline.com/blog/wp-content/uploads/2015/09/28sep-setup-for-continuation-trade-chart-cbot-wheat-60-min.jpg"><img class="alignnone size-full wp-image-1522" src="http://tradinghubonline.com/blog/wp-content/uploads/2015/09/28sep-setup-for-continuation-trade-chart-cbot-wheat-60-min.jpg" alt="28sep setup for continuation trade chart cbot wheat 60 min" width="838" height="752" /></a>

<strong><span style="text-decoration: underline;">Example #3:</span></strong> In this example I show Corning Inc DAY chart. There was two Buy signals and 5 Sell signals from November 2014.
I did a live trade on the last sell signal you see on the chart. Today (28 Sep15) it is still an open position.

<a href="http://tradinghubonline.com/blog/wp-content/uploads/2015/09/28sep-setup-for-continuation-trade-chart-Corning-Inc-DAY.jpg"><img class="alignnone size-full wp-image-1523" src="http://tradinghubonline.com/blog/wp-content/uploads/2015/09/28sep-setup-for-continuation-trade-chart-Corning-Inc-DAY.jpg" alt="28sep setup for continuation trade chart Corning Inc DAY" width="909" height="713" /></a>