I want to give you a quick intro in how we here at Trendy Trading identify the highest probability trades.

First of all, just to get it out into the open, we use what's called supply and demand. Now, a lot of new traders actually get these mixed up, and I understand why, because the names can be a little misleading. However, in the stock market, demand is at a lower price, so it's below current price. Supply is above current price. It's as simple as that.

I want you to close your eyes and think about your most favorite thing that you want to buy. And for this analogy, I'm just going to use a pair of jeans.

Let's say you want to buy a pair of jeans that cost $100 right now, but you would love to get them at a price of $50. In order for that to happen, they must run out of buyers at the $100 mark. Therefore, at some point, the manager will come in and say, “Hey, look, we're not getting enough buyers here, we need to bring price into a demand point.” They bring it down on the clearance rack,they bring init at $75, they don't get enough buyers. So then, they drop the price again, you get that red tag special, it's at 50. Now, all the sudden, buyers come in at $50. Price shoots back up, it goes to $80. But still, not enough buyers, so they come back to where demand is. And that demand level is around $50.

So, here as an example on Microsoft, we took this trade on February the 28th, 2020. Now, we look for price to be supported at our demand levels. We look for price to be resisted at our supply levels. These are lower levels, meaning demand, upper levels, supply. Supply once again, is where the market has run out of buyers. Now, here at Trendy Trading, we have identified supply and demand by using our proprietary trendy edges. The amazing thing about these is we're not trying to be exact on the levels, we use what's called an "If This Then That" situation. For example, if price were to move down into the Trendy edge, we need a couple things to happen before we take the trade to the upside. Once that happens, we're looking for targets of previous edges, and you can see here our target hit very nicely at 162.01.

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Now, just to kind of give you an example of this, you can see here yesterday, 10:26 AM, we took this trade - Microsoft 160 call, expired 6 March, paid 5.95, my stop with $4, my risk was $200 intraday - and holding over the weekend was a little bit more risky. Let's go ahead and open this up for you so you can understand.  But you can see here, we're looking to take the trade up into 162.01. But everything that we trade here is based on stops, targets and entry. We look for the lower edges to be support and then we look for targets where we trim. We never hope and/or look for home runs, we look for base hits, we take trades seriously, we use stops. And not only do we use the trendy edges to identify high probability trades, we also talk about the psychology of trading, which I find to be the most important part of your trading endeavors.

Now, you maybe asking yourself, “Well, how do the edges, how do they really stand the test of time?” Well, in this last market, in the last several days, we have experienced one of the biggest downfalls in the stock market. And as you can see, the trendy edges worked very well. Moving back in time, the cool thing about the edges is that you're able to back test. So here, I can back test and I've studied these for many, many years, and you can see these work very well. I can show you "If This Then That" in almost every scenario across since the market first started. Price moves up to the upper edges, we look for it to be resistance. Price moves down to the lower edges, we look for it to be support.

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Now, what you will notice is we have blue edges, pink edges, and some yellow edges. Now, they're all different time frames. So, we have almost everything that you're looking for whether you're a swing trader, a day trader or a scalp trader. These are all built on different time frames and you can use past edges as targets, too. It's really neat.

Now, let's look at something a little bit more broad. Let's look at the ETF SPY. SPY was a huge focus for us this week. And you can see here that even just going back to 2010, you can see how well these are supported and/or when they break down. Again, "If This Then That" scenario when we're looking to go long, or short. You can see here, nice support and so forth. Now, did we hold at these levels? No. Did we expect to hold at these levels? No, because we are unbiased about every trade. It's "If This Then That" in every scenario that we trade. Price broke down, but notice that price came down into the past edge. And if I were to draw a target, which I did in this area, we would be looking for price to do this then that in order for us to go long. Supply and demand is a big part of trading the market. We are unbiased here and we specifically look for setups around the edges, and we will teach you how to use the edges.

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Before I end here, I want to say something very important, trading is not easy. Matter of fact, trading is very difficult. But what can be easy is a process built around proven strategies on how candles and/or price acts around the trendy edges. And we have, again - since the inception of the market - have these on our charts to show just how powerful these are.

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