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Trendy Trading uses a proven, proprietary trading Methodology and Process to earn consistent profits in any market.
The following few sections describe the overarching principles, trading process, and common terminology used in Jon's teaching sessions, trade plans, and between members.
Refer to this tab often if you desire to grasp the Trendy Trading system as fast as possible.
The 6 Trendy Methodology Principles
1. Having a process is a part of the process
Process = rules. Even if your specific entry and exit rules end up being slightly different variations of Jon's or another member's rules, one thing is non-negotiable for success in trading - have rules! Without rules (aka a process), then your trades are most likely being made on feelings, hope, and/or news. It's impossibly difficult to be consistently profitable if your decisions constantly change with the wind. Have a process and follow a process!
2. Know your numbers (money management)
Everyone's account size and risk tolerance is different. Determine for yourself how much of your total account size you are willing to lose per trade (1%, 2%, 2.5%?). Next, determine what percentage of your full trade size equals a starter position (10%, 20%, 50%?).
Every time you enter a trade, you should ask yourself these two questions: 1. If I enter here, what percentage of my full trade size amount should I use? Is this a starter position or an A+ setup (with full size) position? 2. If I enter here, and my risk level is there, and my trade size is $XYZ - if I get stopped out, will my loss equal my predetermined risk per trade? If it is more than your max risk, reduce your size or reduce your risk level.
Money management is personal. It's important to spend time to figure out what you're willing to risk on any given trade and to stick to the same numbers until you intentionally review and adjust them.
3. Wait for the trend, don't try to predict it
When the markets chop around (i.e. no trend), it makes trading even more difficult than it already is. At Trendy, we tend to trade smaller (in both size and reasonable targets) when the market is in a choppy cycle. However, when the market trends out of the choppiness (either up or down), trading becomes more fluid, easy, and calm.
While we could try and predict when the choppiness will end to get in at the best possible price, it's a guessing game at best and losses can pile up. Instead, we wait patiently until the choppiness ends and go with the flow once the trend begins again.
4. Use supply and demand areas as key levels
So where does trend usually begin or end? The Trendy Methodology studies supply and demand zones and uses them as key areas to watch for price to pivot OR eventually explode through and out the other side. It is important to look at multiple time frames when determining which supply and demand zones to pay attention to and when.
5. Know where you are in the current trend (measure)
We use specific fibonacci levels to help determine where we are in the trend. These levels tell us if we are bullish, bearish, or generally choppy depending on the time frame used. These levels can also be used as targets.
To sum it up, we use Trendy fibonacci levels as a sort of measuring tape to help us enter, stay in, and get out of trades at system-based prices.
6. Have a plan (entries, risk, targets), execute the plan
Every day, Jon incorporates all of the above principles to develop chart blueprints and daily trading plans. Whether you use Jon's blueprints or not, following the Trendy process means you know where to enter each trade, as well as where to stop out or take profits.
Finally, if you have a well-developed plan, it is your ultimate responsibility to take the trades that trigger your entry. And once you are in the trade, is then your responsibility to follow the plan. If you do not follow your plan, then it is difficult to ever know what truly works and what doesn't - and you will ride that emotional roller coaster until you do!
The Trendy Trade Process 101
1. Be ready with a plan
Refer to the Trendy Methodology section for more information, but every trade execution should have the following details already determined beforehand.
1. Plan/Setup: Entry, Stop, Targets 2. Amount you're willing to lose if stopped out (i.e. Risk) 3. Number of shares or contracts (including which strikes/deltas) to buy based on risk
All trade plans should consider the T.R.3.N.D.
T = Time frame R = Range 3 = 3:1 Reward-to-risk ratio N = News as a catalyst that moves price to an edge D = Demand and supply
2. Enter the trade
Every line on a Trendy blueprint is a high-probability entry point or target. While there are several variables to take into account to make the probabilities even higher (which you will learn over time), what you wait for or don't wait for before entering a trade is maybe the greatest variable. (i.e. TIMING!)
Here are a few entry options when price is at your entry level: 1. Most Conservative: Wait for an "inside and up/down" candle formation to close 2. Conservative: Wait for an "inside" candle to form and take the break of that candle up or down on the next candle 3. Aggressive: Only wait for a higher high (or lower low) or take the trade while the inside candle is still forming 4. Most Aggressive: Take the touch or break of an entry level based on momentum
Note: There are many different definitions of an "inside candle". At Trendy Trading we define an inside candle as one that closes within the body of the first candle.
Inside and up example:
Finally, the timeframe is also important. We often use a 10min timeframe for intraday plays, but you can use shorter or longer timeframes. Just know that the bigger the timeframe, the bigger the expectations for the move and vice versa for smaller timeframes.
3. Set your stop
Set your stop immediately (or automatically) after entering the trade based on your plan's risk area.
Get stopped out if the trade doesn't work.
4. Trim at targets, consider adding, and move stop
Trim your position as price reaches your target(s).
Consider adding to your position based on the same entry options from step #2.
Move your stop up to your entry point, so the trade can never go red on you.
5. Stay in the trade
Repeat the process in step #4 until you're out of shares/contracts or the trend breaks.
Use a 9 EMA on varying timeframes (timeframe is based the original plan or expected move), and stay in the trade until candles start closing on the opposite side of the 9 EMA.
6. Rinse and repeat
There are many different setups and variables to consider in any trade, but this basic process is the foundation to focus on and improve on over time.
As you become more and more comfortable with the process, you can apply it to every setup and trade. Mastering this process is one major key to becoming a consistently profitable trader.
Trendy Trading Terminology
Terminology Note: You can also type an exclamation point and the acronym you don't understand (e.g. "!YE") within the Discord chatroom to automatically reveal the definition on the fly.
TR3ND - An acronym to help us remember the Trendy Methodology T = Time Frame R = Range 3 = 3:1 Risk-to-reward ratio N = News as a catalyst to drive price to or from the Edges D = Demand & Supply
EDGE - A price level that is seen as a supply or demand target while in a position, as well as a price level for reversal/stalling when looking to enter a position
WE - The Weekly Edge, a supply or demand level based on a weekly timeframe
ME - The Monthly Edge, a supply or demand level based on a monthly timeframe
YE - The Yearly Edge, a supply or demand level based on a yearly timeframe
PMZ - The Pre-Market Zone, a zone of price for the ticker developed using pre-market trading data that should be considered as a turning point during intraday action
LIS - The Line In the Sand, a price level that will determine if we are bearish (under the LIS) or bullish (over the LIS) during intraday action
HH - Higher High
LL - Lower Low
Inside Candle - In Trendy Trading terminology, any candle that closes within the body of the previous candle. An inside candle is necessary in creating the ever-important Inside And Up (IAU) and Inside And Down (IAD) candle formations. An inside candle can occur on any timeframe.
Note: There can be multiple inside candles as the process of creating a new IAU or IAD candle formation cannot begin again until at least one candle closes outside of the origin candle.
IAU - Inside And Up - a candle formation where there is either a break-up or break-down candle, then one (or more) inside candles, followed by a break of the inside candle's body to the upside. This formation creates some supply or demand. It can form in the direction of the current trend (for potential continuation) OR against it (for potential reversal). It can occur on any timeframe.
IAD - Inside And Down - a candle formation where there is either a break-up or break-down candle, then one (or more) inside candles, followed by a break of the inside candle's body to the downside. This formation creates some supply or demand. It can form in the direction of the current trend (for potential continuation) OR against it (for potential reversal). It can occur on any timeframe.
BANDS - The Trendy-specific EMA lines and cloud using three EMAs
ATR - Average True Range, the average range a ticker has in a given time frame
THE FIBS(often referred to as these percentage levels: 23.6, 38.2, 50, 61.8, 76.4, and 88.7) - These are the Trendy-specific fibonacci levels that are used to determine what bullish or bearish (or neither!) channel the ticker is currently trading within
ACCELERATOR - a price level in which we watch for a quick move to the upper edge of the time frame
DECELERATOR - a price level in which we watch for a quick move to the lower edge of the time frame
DELTA - An important option "Greek", the measure of the rate of change in an option's price for a $1 move in the underlying stock or index. E.g. A .30 delta is estimated to return $30 for every $1 the underlying ticker moves
GO BID - When buyers begin to overwhelm the sellers (i.e. there are more willing buyers than willing sellers in a given moment and the price moves up)
GO ASK - When sellers begin to overwhelm the buyer (i.e. there are more willing sellers than willing buyers in a given moment and the price moves down)
NEED A DEFINITION THAT'S NOT HERE? Direct message a moderator within the Discord chatroom or let us know here.
Weekly Broad Market Analysis Videos
Review how we did in the previous week and look ahead to the upcoming week with Jon's weekly, broad market analysis videos. Mark your charts in the same way and be prepared for the upcoming week!
This cycle is Trendy Trading's ideal market cycle for trade setups. A trending cycle means that the overall market is moving relatively free-and-easy between or beyond supply and demand. When the overall market is making fluid moves to the upside or downside, we can scan for and capitalize on more tradable assets that are making similar moves. The trending cycle tends to follow after multiple days of consolidation and chop.
How to trade this cycle: Both intraday and swing trades tend to have an even higher probability of success during this cycle, so more setups, alerts, and trade plans exist.
Trending Cycle Example (SPY Daily):
2. Choppy Cycle
A choppy cycle means that the overall market is uncertain of its overall direction and tends to chop up and down within a range. When the overall market is indecisive, we focus on shorter-term intraday trades and scalp setups. However, we continue to monitor bigger trades as they begin to breakout or breakdown out of the range. The choppy cycle tends to follow after big moves (up or down) in the market.
How to trade this cycle: Longer-term swing trades require much more patience during a choppy cycle. Make sure you are sized correctly on swing trades to help manage your emotions while they chop around for - potentially - days or weeks at a time. Instead, focus the bulk of your energy on short intraday or scalp trades, which require a lot less patience.
Choppy Cycle Example (SPY Daily):
Allocation and Position Sizing
In order to be a calm and consistent trader, it's important to feel comfortable in every trade. Knowing how much size to have on each trade BEFORE you start a trade will go a long way in keeping you comfortable.
At Trendy Trading, each trader uses a baseline formula to determine their FULL size and STARTER size positions. This way, even if a trade goes against you, you already know how much you will lose (and that loss should be a comfortable amount).
Furthermore, these baseline allocation numbers change based on the type of market cycle we are in (Trending or Choppy).
All "alerts" at Trendy Trading are in a journal format in the #trendy-alerts-journal channel in Discord. Jon and any other moderators will never alert completely blind trades, but rather they will alert their trade ideas and blueprints. (And only IF they entered themselves, they will mention where they entered.)
Below are a few types of journal alerts that might appear and how to interpret them.
How to read the alerts journal
Typical starter/swing alert
Example: "STARTED MMM 165 CALL EXP 20 MAR. PAID 2.15" How to read:
STARTED = A starter means entering a new position with a small fraction of your typical "full" trade size. For example, if your full trade size is $2,000 on a trade, a starter may mean 10% of this, or $200 worth. If the trade goes in our favor, we can add up to full size. If it goes against us, we can cut for a much smaller loss than if we already had full size.
MMM = ticker symbol
165 CALL = the 165 strike for a directional call
EXP 20 MAR = the expiration date for the given strike
PAID 2.15 = what Jon paid for the entry (to give you a baseline idea before you enter)
Typical scalp alert
Example: "AAPL SCALP / ABOVE $282.95 / LONG / STOP $1.2 / CALLS OR EQUITY / TARGETS $282.50-$288/$295" How to read:
When the market is choppy, Jon may look to provide Scalp trade opportunities. However, they usually happen too fast for Jon to alert his entries and exits. Instead, Jon will "condition" the trade if it looks to be setting up. He will put "SCALP" in the alert so you know that it's an opportunity for you trade it on your own if you'd like to.
AAPL = ticker
ABOVE $282.95 = the level to wait for price to break before entering
LONG = long or short
STOP $1.2 = The risk level on the ticker (which is the underlying stock if playing options). In this case, your stop risk is $1.20 under $282.95, or $281.75.
CALLS OR EQUITY = you can choose to trade this setup with options or equity/shares
TARGETS $282.50-$288/$295 = if the trade moves in your favor, these can be good targets for profit-taking
Other common alert journal terms
Added: Used when adding to a current position / previous starter position
Stopped / Stops: Used when stopped out of a position or if stops are being adjusted
Trim: Used when taking partial profits at targets (targets are often noted as T1, T2, or T3)
Trendy Trade Plan strategies primarily focus on the trade ideas and setups brought to you by Jon, other moderators, and members within Discord's #main-chat and "Trade Setups" channels. They will often be alerted in the #trendy-alerts-journal as well (see the Trade Idea Alert Types tab above for instructions).
Trendy Trade Plan Strategies
#daily-focus Discord channel
1. Each morning, click the "#daily-focus" trades channel 2. Jon will place 1-3 "focus trade" blueprints within this channel - complete with entries, targets, risk, and explanation, as well if the trade is an intraday and/or swing trade and if it can be played with equity and/or options (and if options, which strike and expiration). Finally, Jon will add a screenshot of the blueprint. 3. Write down and/or copy over Jon's blueprint levels and zones to your own charts. 4. Execute the trade based on Jon's blueprint but with your personal allocation and risk rules.
Example:
#trade-plans Discord channel
1. Periodically, check the "#trade-plans" trades channel 2. Jon will place several swing trade blueprints within this channel 3. Write down and/or copy over Jon's blueprint levels and zones to your own charts 4. Execute the swing trades based on Jon's blueprint but with your personal allocation and risk rules
Example:
#futures Discord channel
1. Each day/night, click the "#futures" trade channel 2. Jon will place screenshot blueprints of futures tickers within this channel (ES, CL, NQ, etc.) 3. Write down and/or copy over Jon's blueprint levels and zones to your own charts 4. Execute the futures trades based on Jon's blueprint but with your personal allocation and risk rules Example:
#broad-market Discord channel
1. Each Sunday night, click the "#broad-market" trade setup channel 2. Jon will place screenshot blueprints of broad market futures, ETFs, and market internal indicators within this channel (SPY, QQQ, /ZB, $DXY, $PCALL, VIX, SKEW, /GC, etc.) 3. Write down and/or copy over Jon's blueprint levels and zones to your own charts 4. Execute trades based on Jon's blueprint but with your personal allocation and risk rules Example:
Overnight ETF trade strategy
This setup, uses the DAY candle close of the broad market ETFs as an entry trigger for calls or puts to hold overnight. Using the broad market ETF blueprints, it's highly probable that if the ETF closes above or below Jon's pre-marked neutral zones (the yellow boxes on his charts), then the ETF will move higher (if the day close is above) or lower (if the day close is below) the following day.
1. Each Sunday night, click the "#broad-market" trade setup channel 2. Jon will place screenshot blueprints of broad market futures, ETFs, and market internal indicators within this channel (SPY, QQQ, /ZB, $DXY, $PCALL, VIX, SKEW, /GC, etc.) 3. Copy over Jon's neutral zones (yellow boxes) and targets of any of the market ETFs to your own charts 4. If a DAY candle closes over or under the neutral zone during the upcoming week, buy directional options (calls if the close is over, puts if the close is under). ToS (and maybe others) allow you to buy these ETF options after the Regular Trading Hours close so long as it's within 15 minutes of the close. 5. For your options, you may choose the strike and expiration you'd like. Buying Weekly expiration .30 delta calls/puts is usually a good choice. Please mind your overnight allocation and risk rules. 6. If the trade is favorable upon the next day's open, close for profits and/or manage the trade as usual using targets.
Note: If the day close is not above or below the yellow box, then this setup is invalid - the ETF is still in the neutral zone. Example:
Trendy trade plans are detailed blueprints of high-probability trades developed by Jon daily and weekly. Each plan is mapped out using the Trendy Methodology. You can find them in any of the Setups and Trade Plans channels in Discord. Please study the below information and video tutorial on how to execute a trade plan.
How to Read & Execute a Trade Plan
Jon will provide a chart like this example of a swing Trade Plan for TRIP. Not all of them will look identical, but they all will provide the right information to execute the trade.
HOW TO READ & EXECUTE THE PLAN INFO:
You will often see a lot of elements/lines/indicators on the chart - you don't need to worry about most of these in order to take the trade. To execute a trade plan, you just need to know how to apply the attached plan info to your trade.
The trade plan ticker
TRADE LENGTH: How long we're expecting the trade to take Intraday - We’re looking for short-term, 10 min - 1-day moves. Our focus and risk levels are based on an intraday chart. However, these can turn into swings *if* the trend is strong. Swing - We’re looking for mid-term, 2-day to 2+ week moves. Our focus and risk levels are based on daily and weekly charts only. These take more patience and wider stops.
SETUP: The reason why Jon selected this particular ticker to trade
Pro Members - please visit your Pro Setups section to learn about the setup.
Trade Plan Members - If you’d like to learn what makes these proprietary setups work, upgrade to Trendy Pro. However, knowing why the setups work is not necessary in order to execute the trade.
ENTRY: Maybe the most crucial part in executing a trade plan - When do you enter? How do you determine how much size to put into the position?
The Trendy Process (see the Process Tab) should be followed for EVERY entry.
The default entry process is: IF price reaches the plan's entry level, THEN wait for an “inside and up” (or inside and down if it’s a short entry) on a 10 minute chart. IF an IAU or IAD forms, enter the trade and place your stop at the risk level from the plan info. See the Terminology tab to learn what an IAU or IAD is.
The following means you’re front-running the process: 1. Waiting for an IAU or IAD on a timeframe that is less than 10mins (e.g. 5min, 1min, etc.) 2. Not waiting for the IAU or IAD to fully form before entering 3. Taking the trade on “momentum” - i.e. just taking the trade at the level and not waiting for an IAU or IAD to even start forming
If you want to front-run - Take your STARTER size first and add to the trade if it works. This way, if the trade fails, your loss is smaller. If the trade works, you can add into your full position size after an IAU or IAD forms, and your cost average will be better.
Having the right allocation means if the trade hits your STOP, you know exactly what you will lose - and be entirely okay with it. If you’re nervous in the trade, your allocation size is probably too big.
HOW TO TRADE USING IAUs & IADs
RISK: Where you place your STOP and how you calculate your position size/how much you could lose
Jon will notate risk based on a move in the ticker's price. His risk level will incorporate the Trendy process - where the STOP is placed on the opposite side of key support or resitance level.
If you're trading equity, you can simply place the STOP based on your entry point and the dollar amount provided.
If you're trading options, Jon will provide option delta ranges for you to choose from. You then must calculate how many contracts to buy based on your allocation size and the risk level provided for the given trade.
For example: If the risk level provided is $2 (i.e. $2 away from your entry point) and you choose a delta 30 strike, you know that if the underlying ticker moves $2 against you, you will lose about $30 per $1 move. So, in this case, you would lose about $60 per contract if you stopped out at the risk level ($2 risk x delta 30 option contracts = $60). If your allocation numbers say your full size risk amount is a $300 loss, then you can buy 5 delta 30 contracts and be comfortable getting stopped out (5 contracts with a delta 30 = $150 change in a $1 move in the underlying ticker. The risk is $2, so multiplied by $150 = $300).
This takes repetition to learn, but once you understand your numbers it all gets much faster.
NOTE: If you're late to the trade, consider ignoring the plan altogether and waiting for the next plan to set up. Don't FOMO! If you *do* get into the trade late, make sure to reduce your allocation size to match your now increased risk level.
For example: If the trade plan risk said $1 from the entry level, but you enter $1 later than the plan, your risk level should now be $2 away, not $1 away.
TARGETS: Where to trim, add to, or close your position if the plan is working Each trade plan typically provides 2 or more targets. You can take one or more of the following three actions at every target:
1. Trim - take some profits on part of your position
2. Add - wait for another IAU or IAD in the direction of the trade near the target and add to your positions. (Trimmering profits and adding back in at targets is a solid method to stay in a good trade.) 3. Close - if you’re happy with your profits or have run out of shares/contracts, close the position. You can also leave a few “runners” and attach a stop or trailing stop to them. Each time a target is reached, consider moving your stops one level up (or down if shorting) to ensure a profitable trade.
HOW TO EXECUTE A TRADE PLAN VIDEO TUTORIAL
HOW TO BEST PREPARE FOR THE TRADE AHEAD OF TIME: 1. Copy the levels over to your chart: Add the entry level, risk level, and target levels from the plan info to your own charts. 2. Prepare your orders: Determine your ideal your entry and exit points, as well as your share count or contract quantity purchase amount (including option strikes and expirations) based on entry and risk levels. Have them loaded and ready to submit if the trade plan sets up! 3. Set alerts on your chart: Set an alert (or multiple!) before the entry level would potentially be hit so you know when to get ready to submit your order. Once in the trade, place your stop. 4. Take the trade: Review in the info/video above AND the Trendy Trade Process 101 section (in the Methodology tab) to determine if and when you might enter the trade. Execute the trade!
Have additional questions? Drop them in the #❓-trade-plan-questions channel in Discord.
We plan, discuss, and trade live every single morning, starting at least 30 minutes before market open and running until about one hour after market open.
Screenshare is accessible through our Discord Channel.
Chatroom Access
Our chatroom is open 24/7 on the Discord browser, phone, or desktop app.
Trendy Trading uses a proven, proprietary trading Methodology and Process to earn consistent profits in any market.
The following few sections describe the overarching principles, trading process, and common terminology used in Jon's teaching sessions, trade plans, and between members.
Refer to this tab often if you desire to grasp the Trendy Trading system as fast as possible.
The 6 Trendy Methodology Principles
1. Having a process is a part of the process
Process = rules. Even if your specific entry and exit rules end up being slightly different variations of Jon's or another member's rules, one thing is non-negotiable for success in trading - have rules! Without rules (aka a process), then your trades are most likely being made on feelings, hope, and/or news. It's impossibly difficult to be consistently profitable if your decisions constantly change with the wind. Have a process and follow a process!
2. Know your numbers (money management)
Everyone's account size and risk tolerance is different. Determine for yourself how much of your total account size you are willing to lose per trade (1%, 2%, 2.5%?). Next, determine what percentage of your full trade size equals a starter position (10%, 20%, 50%?).
Every time you enter a trade, you should ask yourself these two questions: 1. If I enter here, what percentage of my full trade size amount should I use? Is this a starter position or an A+ setup (with full size) position? 2. If I enter here, and my risk level is there, and my trade size is $XYZ - if I get stopped out, will my loss equal my predetermined risk per trade? If it is more than your max risk, reduce your size or reduce your risk level.
Money management is personal. It's important to spend time to figure out what you're willing to risk on any given trade and to stick to the same numbers until you intentionally review and adjust them.
3. Wait for the trend, don't try to predict it
When the markets chop around (i.e. no trend), it makes trading even more difficult than it already is. At Trendy, we tend to trade smaller (in both size and reasonable targets) when the market is in a choppy cycle. However, when the market trends out of the choppiness (either up or down), trading becomes more fluid, easy, and calm.
While we could try and predict when the choppiness will end to get in at the best possible price, it's a guessing game at best and losses can pile up. Instead, we wait patiently until the choppiness ends and go with the flow once the trend begins again.
4. Use supply and demand areas as key levels
So where does trend usually begin or end? The Trendy Methodology studies supply and demand zones and uses them as key areas to watch for price to pivot OR eventually explode through and out the other side. It is important to look at multiple time frames when determining which supply and demand zones to pay attention to and when.
5. Know where you are in the current trend (measure)
We use specific fibonacci levels to help determine where we are in the trend. These levels tell us if we are bullish, bearish, or generally choppy depending on the time frame used. These levels can also be used as targets.
To sum it up, we use Trendy fibonacci levels as a sort of measuring tape to help us enter, stay in, and get out of trades at system-based prices.
6. Have a plan (entries, risk, targets), execute the plan
Every day, Jon incorporates all of the above principles to develop chart blueprints and daily trading plans. Whether you use Jon's blueprints or not, following the Trendy process means you know where to enter each trade, as well as where to stop out or take profits.
Finally, if you have a well-developed plan, it is your ultimate responsibility to take the trades that trigger your entry. And once you are in the trade, is then your responsibility to follow the plan. If you do not follow your plan, then it is difficult to ever know what truly works and what doesn't - and you will ride that emotional roller coaster until you do!
The Trendy Trade Process 101
1. Be ready with a plan
Refer to the Trendy Methodology section for more information, but every trade execution should have the following details already determined beforehand.
1. Plan/Setup: Entry, Stop, Targets 2. Amount you're willing to lose if stopped out (i.e. Risk) 3. Number of shares or contracts (including which strikes/deltas) to buy based on risk
All trade plans should consider the T.R.3.N.D.
T = Time frame R = Range 3 = 3:1 Reward-to-risk ratio N = News as a catalyst that moves price to an edge D = Demand and supply
2. Enter the trade
Every line on a Trendy blueprint is a high-probability entry point or target. While there are several variables to take into account to make the probabilities even higher (which you will learn over time), what you wait for or don't wait for before entering a trade is maybe the greatest variable. (i.e. TIMING!)
Here are a few entry options when price is at your entry level: 1. Most Conservative: Wait for an "inside and up/down" candle formation to close 2. Conservative: Wait for an "inside" candle to form and take the break of that candle up or down on the next candle 3. Aggressive: Only wait for a higher high (or lower low) or take the trade while the inside candle is still forming 4. Most Aggressive: Take the touch or break of an entry level based on momentum
Note: There are many different definitions of an "inside candle". At Trendy Trading we define an inside candle as one that closes within the body of the first candle.
Inside and up example:
Finally, the timeframe is also important. We often use a 10min timeframe for intraday plays, but you can use shorter or longer timeframes. Just know that the bigger the timeframe, the bigger the expectations for the move and vice versa for smaller timeframes.
3. Set your stop
Set your stop immediately (or automatically) after entering the trade based on your plan's risk area.
Get stopped out if the trade doesn't work.
4. Trim at targets, consider adding, and move stop
Trim your position as price reaches your target(s).
Consider adding to your position based on the same entry options from step #2.
Move your stop up to your entry point, so the trade can never go red on you.
5. Stay in the trade
Repeat the process in step #4 until you're out of shares/contracts or the trend breaks.
Use a 9 EMA on varying timeframes (timeframe is based the original plan or expected move), and stay in the trade until candles start closing on the opposite side of the 9 EMA.
6. Rinse and repeat
There are many different setups and variables to consider in any trade, but this basic process is the foundation to focus on and improve on over time.
As you become more and more comfortable with the process, you can apply it to every setup and trade. Mastering this process is one major key to becoming a consistently profitable trader.
Trendy Trading Terminology
Terminology Note: You can also type an exclamation point and the acronym you don't understand (e.g. "!YE") within the Discord chatroom to automatically reveal the definition on the fly.
TR3ND - An acronym to help us remember the Trendy Methodology T = Time Frame R = Range 3 = 3:1 Risk-to-reward ratio N = News as a catalyst to drive price to or from the Edges D = Demand & Supply
EDGE - A price level that is seen as a supply or demand target while in a position, as well as a price level for reversal/stalling when looking to enter a position
WE - The Weekly Edge, a supply or demand level based on a weekly timeframe
ME - The Monthly Edge, a supply or demand level based on a monthly timeframe
YE - The Yearly Edge, a supply or demand level based on a yearly timeframe
PMZ - The Pre-Market Zone, a zone of price for the ticker developed using pre-market trading data that should be considered as a turning point during intraday action
LIS - The Line In the Sand, a price level that will determine if we are bearish (under the LIS) or bullish (over the LIS) during intraday action
HH - Higher High
LL - Lower Low
Inside Candle - In Trendy Trading terminology, any candle that closes within the body of the previous candle. An inside candle is necessary in creating the ever-important Inside And Up (IAU) and Inside And Down (IAD) candle formations. An inside candle can occur on any timeframe.
Note: There can be multiple inside candles as the process of creating a new IAU or IAD candle formation cannot begin again until at least one candle closes outside of the origin candle.
IAU - Inside And Up - a candle formation where there is either a break-up or break-down candle, then one (or more) inside candles, followed by a break of the inside candle's body to the upside. This formation creates some supply or demand. It can form in the direction of the current trend (for potential continuation) OR against it (for potential reversal). It can occur on any timeframe.
IAD - Inside And Down - a candle formation where there is either a break-up or break-down candle, then one (or more) inside candles, followed by a break of the inside candle's body to the downside. This formation creates some supply or demand. It can form in the direction of the current trend (for potential continuation) OR against it (for potential reversal). It can occur on any timeframe.
BANDS - The Trendy-specific EMA lines and cloud using three EMAs
ATR - Average True Range, the average range a ticker has in a given time frame
THE FIBS(often referred to as these percentage levels: 23.6, 38.2, 50, 61.8, 76.4, and 88.7) - These are the Trendy-specific fibonacci levels that are used to determine what bullish or bearish (or neither!) channel the ticker is currently trading within
ACCELERATOR - a price level in which we watch for a quick move to the upper edge of the time frame
DECELERATOR - a price level in which we watch for a quick move to the lower edge of the time frame
DELTA - An important option "Greek", the measure of the rate of change in an option's price for a $1 move in the underlying stock or index. E.g. A .30 delta is estimated to return $30 for every $1 the underlying ticker moves
GO BID - When buyers begin to overwhelm the sellers (i.e. there are more willing buyers than willing sellers in a given moment and the price moves up)
GO ASK - When sellers begin to overwhelm the buyer (i.e. there are more willing sellers than willing buyers in a given moment and the price moves down)
NEED A DEFINITION THAT'S NOT HERE? Direct message a moderator within the Discord chatroom or let us know here.
Weekly Broad Market Analysis Videos
Review how we did in the previous week and look ahead to the upcoming week with Jon's weekly, broad market analysis videos. Mark your charts in the same way and be prepared for the upcoming week!
This cycle is Trendy Trading's ideal market cycle for trade setups. A trending cycle means that the overall market is moving relatively free-and-easy between or beyond supply and demand. When the overall market is making fluid moves to the upside or downside, we can scan for and capitalize on more tradable assets that are making similar moves. The trending cycle tends to follow after multiple days of consolidation and chop.
How to trade this cycle: Both intraday and swing trades tend to have an even higher probability of success during this cycle, so more setups, alerts, and trade plans exist.
Trending Cycle Example (SPY Daily):
2. Choppy Cycle
A choppy cycle means that the overall market is uncertain of its overall direction and tends to chop up and down within a range. When the overall market is indecisive, we focus on shorter-term intraday trades and scalp setups. However, we continue to monitor bigger trades as they begin to breakout or breakdown out of the range. The choppy cycle tends to follow after big moves (up or down) in the market.
How to trade this cycle: Longer-term swing trades require much more patience during a choppy cycle. Make sure you are sized correctly on swing trades to help manage your emotions while they chop around for - potentially - days or weeks at a time. Instead, focus the bulk of your energy on short intraday or scalp trades, which require a lot less patience.
Choppy Cycle Example (SPY Daily):
Allocation and Position Sizing
In order to be a calm and consistent trader, it's important to feel comfortable in every trade. Knowing how much size to have on each trade BEFORE you start a trade will go a long way in keeping you comfortable.
At Trendy Trading, each trader uses a baseline formula to determine their FULL size and STARTER size positions. This way, even if a trade goes against you, you already know how much you will lose (and that loss should be a comfortable amount).
Furthermore, these baseline allocation numbers change based on the type of market cycle we are in (Trending or Choppy).
All "alerts" at Trendy Trading are in a journal format in the #trendy-alerts-journal channel in Discord. Jon and any other moderators will never alert completely blind trades, but rather they will alert their trade ideas and blueprints. (And only IF they entered themselves, they will mention where they entered.)
Below are a few types of journal alerts that might appear and how to interpret them.
How to read the alerts journal
Typical starter/swing alert
Example: "STARTED MMM 165 CALL EXP 20 MAR. PAID 2.15" How to read:
STARTED = A starter means entering a new position with a small fraction of your typical "full" trade size. For example, if your full trade size is $2,000 on a trade, a starter may mean 10% of this, or $200 worth. If the trade goes in our favor, we can add up to full size. If it goes against us, we can cut for a much smaller loss than if we already had full size.
MMM = ticker symbol
165 CALL = the 165 strike for a directional call
EXP 20 MAR = the expiration date for the given strike
PAID 2.15 = what Jon paid for the entry (to give you a baseline idea before you enter)
Typical scalp alert
Example: "AAPL SCALP / ABOVE $282.95 / LONG / STOP $1.2 / CALLS OR EQUITY / TARGETS $282.50-$288/$295" How to read:
When the market is choppy, Jon may look to provide Scalp trade opportunities. However, they usually happen too fast for Jon to alert his entries and exits. Instead, Jon will "condition" the trade if it looks to be setting up. He will put "SCALP" in the alert so you know that it's an opportunity for you trade it on your own if you'd like to.
AAPL = ticker
ABOVE $282.95 = the level to wait for price to break before entering
LONG = long or short
STOP $1.2 = The risk level on the ticker (which is the underlying stock if playing options). In this case, your stop risk is $1.20 under $282.95, or $281.75.
CALLS OR EQUITY = you can choose to trade this setup with options or equity/shares
TARGETS $282.50-$288/$295 = if the trade moves in your favor, these can be good targets for profit-taking
Other common alert journal terms
Added: Used when adding to a current position / previous starter position
Stopped / Stops: Used when stopped out of a position or if stops are being adjusted
Trim: Used when taking partial profits at targets (targets are often noted as T1, T2, or T3)
Trendy Trade Plan strategies primarily focus on the trade ideas and setups brought to you by Jon, other moderators, and members within Discord's #main-chat and "Trade Setups" channels. They will often be alerted in the #trendy-alerts-journal as well (see the Trade Idea Alert Types tab above for instructions).
Trendy Trade Plan Strategies
#daily-focus Discord channel
1. Each morning, click the "#daily-focus" trades channel 2. Jon will place 1-3 "focus trade" blueprints within this channel - complete with entries, targets, risk, and explanation, as well if the trade is an intraday and/or swing trade and if it can be played with equity and/or options (and if options, which strike and expiration). Finally, Jon will add a screenshot of the blueprint. 3. Write down and/or copy over Jon's blueprint levels and zones to your own charts. 4. Execute the trade based on Jon's blueprint but with your personal allocation and risk rules.
Example:
#trade-plans Discord channel
1. Periodically, check the "#trade-plans" trades channel 2. Jon will place several swing trade blueprints within this channel 3. Write down and/or copy over Jon's blueprint levels and zones to your own charts 4. Execute the swing trades based on Jon's blueprint but with your personal allocation and risk rules
Example:
#futures Discord channel
1. Each day/night, click the "#futures" trade channel 2. Jon will place screenshot blueprints of futures tickers within this channel (ES, CL, NQ, etc.) 3. Write down and/or copy over Jon's blueprint levels and zones to your own charts 4. Execute the futures trades based on Jon's blueprint but with your personal allocation and risk rules Example:
#broad-market Discord channel
1. Each Sunday night, click the "#broad-market" trade setup channel 2. Jon will place screenshot blueprints of broad market futures, ETFs, and market internal indicators within this channel (SPY, QQQ, /ZB, $DXY, $PCALL, VIX, SKEW, /GC, etc.) 3. Write down and/or copy over Jon's blueprint levels and zones to your own charts 4. Execute trades based on Jon's blueprint but with your personal allocation and risk rules Example:
Overnight ETF trade strategy
This setup, uses the DAY candle close of the broad market ETFs as an entry trigger for calls or puts to hold overnight. Using the broad market ETF blueprints, it's highly probable that if the ETF closes above or below Jon's pre-marked neutral zones (the yellow boxes on his charts), then the ETF will move higher (if the day close is above) or lower (if the day close is below) the following day.
1. Each Sunday night, click the "#broad-market" trade setup channel 2. Jon will place screenshot blueprints of broad market futures, ETFs, and market internal indicators within this channel (SPY, QQQ, /ZB, $DXY, $PCALL, VIX, SKEW, /GC, etc.) 3. Copy over Jon's neutral zones (yellow boxes) and targets of any of the market ETFs to your own charts 4. If a DAY candle closes over or under the neutral zone during the upcoming week, buy directional options (calls if the close is over, puts if the close is under). ToS (and maybe others) allow you to buy these ETF options after the Regular Trading Hours close so long as it's within 15 minutes of the close. 5. For your options, you may choose the strike and expiration you'd like. Buying Weekly expiration .30 delta calls/puts is usually a good choice. Please mind your overnight allocation and risk rules. 6. If the trade is favorable upon the next day's open, close for profits and/or manage the trade as usual using targets.
Note: If the day close is not above or below the yellow box, then this setup is invalid - the ETF is still in the neutral zone. Example:
Trendy trade plans are detailed blueprints of high-probability trades developed by Jon daily and weekly. Each plan is mapped out using the Trendy Methodology. You can find them in any of the Setups and Trade Plans channels in Discord. Please study the below information and video tutorial on how to execute a trade plan.
How to Read & Execute a Trade Plan
Jon will provide a chart like this example of a swing Trade Plan for TRIP. Not all of them will look identical, but they all will provide the right information to execute the trade.
HOW TO READ & EXECUTE THE PLAN INFO:
You will often see a lot of elements/lines/indicators on the chart - you don't need to worry about most of these in order to take the trade. To execute a trade plan, you just need to know how to apply the attached plan info to your trade.
The trade plan ticker
TRADE LENGTH: How long we're expecting the trade to take Intraday - We’re looking for short-term, 10 min - 1-day moves. Our focus and risk levels are based on an intraday chart. However, these can turn into swings *if* the trend is strong. Swing - We’re looking for mid-term, 2-day to 2+ week moves. Our focus and risk levels are based on daily and weekly charts only. These take more patience and wider stops.
SETUP: The reason why Jon selected this particular ticker to trade
Pro Members - please visit your Pro Setups section to learn about the setup.
Trade Plan Members - If you’d like to learn what makes these proprietary setups work, upgrade to Trendy Pro. However, knowing why the setups work is not necessary in order to execute the trade.
ENTRY: Maybe the most crucial part in executing a trade plan - When do you enter? How do you determine how much size to put into the position?
The Trendy Process (see the Process Tab) should be followed for EVERY entry.
The default entry process is: IF price reaches the plan's entry level, THEN wait for an “inside and up” (or inside and down if it’s a short entry) on a 10 minute chart. IF an IAU or IAD forms, enter the trade and place your stop at the risk level from the plan info. See the Terminology tab to learn what an IAU or IAD is.
The following means you’re front-running the process: 1. Waiting for an IAU or IAD on a timeframe that is less than 10mins (e.g. 5min, 1min, etc.) 2. Not waiting for the IAU or IAD to fully form before entering 3. Taking the trade on “momentum” - i.e. just taking the trade at the level and not waiting for an IAU or IAD to even start forming
If you want to front-run - Take your STARTER size first and add to the trade if it works. This way, if the trade fails, your loss is smaller. If the trade works, you can add into your full position size after an IAU or IAD forms, and your cost average will be better.
Having the right allocation means if the trade hits your STOP, you know exactly what you will lose - and be entirely okay with it. If you’re nervous in the trade, your allocation size is probably too big.
HOW TO TRADE USING IAUs & IADs
RISK: Where you place your STOP and how you calculate your position size/how much you could lose
Jon will notate risk based on a move in the ticker's price. His risk level will incorporate the Trendy process - where the STOP is placed on the opposite side of key support or resitance level.
If you're trading equity, you can simply place the STOP based on your entry point and the dollar amount provided.
If you're trading options, Jon will provide option delta ranges for you to choose from. You then must calculate how many contracts to buy based on your allocation size and the risk level provided for the given trade.
For example: If the risk level provided is $2 (i.e. $2 away from your entry point) and you choose a delta 30 strike, you know that if the underlying ticker moves $2 against you, you will lose about $30 per $1 move. So, in this case, you would lose about $60 per contract if you stopped out at the risk level ($2 risk x delta 30 option contracts = $60). If your allocation numbers say your full size risk amount is a $300 loss, then you can buy 5 delta 30 contracts and be comfortable getting stopped out (5 contracts with a delta 30 = $150 change in a $1 move in the underlying ticker. The risk is $2, so multiplied by $150 = $300).
This takes repetition to learn, but once you understand your numbers it all gets much faster.
NOTE: If you're late to the trade, consider ignoring the plan altogether and waiting for the next plan to set up. Don't FOMO! If you *do* get into the trade late, make sure to reduce your allocation size to match your now increased risk level.
For example: If the trade plan risk said $1 from the entry level, but you enter $1 later than the plan, your risk level should now be $2 away, not $1 away.
TARGETS: Where to trim, add to, or close your position if the plan is working Each trade plan typically provides 2 or more targets. You can take one or more of the following three actions at every target:
1. Trim - take some profits on part of your position
2. Add - wait for another IAU or IAD in the direction of the trade near the target and add to your positions. (Trimmering profits and adding back in at targets is a solid method to stay in a good trade.) 3. Close - if you’re happy with your profits or have run out of shares/contracts, close the position. You can also leave a few “runners” and attach a stop or trailing stop to them. Each time a target is reached, consider moving your stops one level up (or down if shorting) to ensure a profitable trade.
HOW TO EXECUTE A TRADE PLAN VIDEO TUTORIAL
HOW TO BEST PREPARE FOR THE TRADE AHEAD OF TIME: 1. Copy the levels over to your chart: Add the entry level, risk level, and target levels from the plan info to your own charts. 2. Prepare your orders: Determine your ideal your entry and exit points, as well as your share count or contract quantity purchase amount (including option strikes and expirations) based on entry and risk levels. Have them loaded and ready to submit if the trade plan sets up! 3. Set alerts on your chart: Set an alert (or multiple!) before the entry level would potentially be hit so you know when to get ready to submit your order. Once in the trade, place your stop. 4. Take the trade: Review in the info/video above AND the Trendy Trade Process 101 section (in the Methodology tab) to determine if and when you might enter the trade. Execute the trade!
Have additional questions? Drop them in the #❓-trade-plan-questions channel in Discord.
We plan, discuss, and trade live every single morning, starting at least 30 minutes before market open and running until about one hour after market open.
IMPORTANT: If you are a Legacy Member (i.e. from Tr3ndyOptions), you can only update your account payment info through your original PayPal subscription. If you need help, please send a message to team@trendytrading.co.
If you signed up on this site, you can update your account using the link below.
Trendy Trading uses a proven, proprietary trading Methodology and Process to earn consistent profits in any market.
The following few sections describe the overarching principles, trading process, and common terminology used in Jon's teaching sessions, trade plans, and between members.
Refer to this tab often if you desire to grasp the Trendy Trading system as fast as possible.
The 6 Trendy Methodology Principles
1. Having a process is a part of the process
Process = rules. Even if your specific entry and exit rules end up being slightly different variations of Jon's or another member's rules, one thing is non-negotiable for success in trading - have rules! Without rules (aka a process), then your trades are most likely being made on feelings, hope, and/or news. It's impossibly difficult to be consistently profitable if your decisions constantly change with the wind. Have a process and follow a process!
2. Know your numbers (money management)
Everyone's account size and risk tolerance is different. Determine for yourself how much of your total account size you are willing to lose per trade (1%, 2%, 2.5%?). Next, determine what percentage of your full trade size equals a starter position (10%, 20%, 50%?).
Every time you enter a trade, you should ask yourself these two questions: 1. If I enter here, what percentage of my full trade size amount should I use? Is this a starter position or an A+ setup (with full size) position? 2. If I enter here, and my risk level is there, and my trade size is $XYZ - if I get stopped out, will my loss equal my predetermined risk per trade? If it is more than your max risk, reduce your size or reduce your risk level.
Money management is personal. It's important to spend time to figure out what you're willing to risk on any given trade and to stick to the same numbers until you intentionally review and adjust them.
3. Wait for the trend, don't try to predict it
When the markets chop around (i.e. no trend), it makes trading even more difficult than it already is. At Trendy, we tend to trade smaller (in both size and reasonable targets) when the market is in a choppy cycle. However, when the market trends out of the choppiness (either up or down), trading becomes more fluid, easy, and calm.
While we could try and predict when the choppiness will end to get in at the best possible price, it's a guessing game at best and losses can pile up. Instead, we wait patiently until the choppiness ends and go with the flow once the trend begins again.
4. Use supply and demand areas as key levels
So where does trend usually begin or end? The Trendy Methodology studies supply and demand zones and uses them as key areas to watch for price to pivot OR eventually explode through and out the other side. It is important to look at multiple time frames when determining which supply and demand zones to pay attention to and when.
5. Know where you are in the current trend (measure)
We use specific fibonacci levels to help determine where we are in the trend. These levels tell us if we are bullish, bearish, or generally choppy depending on the time frame used. These levels can also be used as targets.
To sum it up, we use Trendy fibonacci levels as a sort of measuring tape to help us enter, stay in, and get out of trades at system-based prices.
6. Have a plan (entries, risk, targets), execute the plan
Every day, Jon incorporates all of the above principles to develop chart blueprints and daily trading plans. Whether you use Jon's blueprints or not, following the Trendy process means you know where to enter each trade, as well as where to stop out or take profits.
Finally, if you have a well-developed plan, it is your ultimate responsibility to take the trades that trigger your entry. And once you are in the trade, is then your responsibility to follow the plan. If you do not follow your plan, then it is difficult to ever know what truly works and what doesn't - and you will ride that emotional roller coaster until you do!
The Trendy Trade Process 101
1. Be ready with a plan
Refer to the Trendy Methodology section for more information, but every trade execution should have the following details already determined beforehand.
1. Plan/Setup: Entry, Stop, Targets 2. Amount you're willing to lose if stopped out (i.e. Risk) 3. Number of shares or contracts (including which strikes/deltas) to buy based on risk
All trade plans should consider the T.R.3.N.D.
T = Time frame R = Range 3 = 3:1 Reward-to-risk ratio N = News as a catalyst that moves price to an edge D = Demand and supply
2. Enter the trade
Every line on a Trendy blueprint is a high-probability entry point or target. While there are several variables to take into account to make the probabilities even higher (which you will learn over time), what you wait for or don't wait for before entering a trade is maybe the greatest variable. (i.e. TIMING!)
Here are a few entry options when price is at your entry level: 1. Most Conservative: Wait for an "inside and up/down" candle formation to close 2. Conservative: Wait for an "inside" candle to form and take the break of that candle up or down on the next candle 3. Aggressive: Only wait for a higher high (or lower low) or take the trade while the inside candle is still forming 4. Most Aggressive: Take the touch or break of an entry level based on momentum
Note: There are many different definitions of an "inside candle". At Trendy Trading we define an inside candle as one that closes within the body of the first candle.
Inside and up example:
Finally, the timeframe is also important. We often use a 10min timeframe for intraday plays, but you can use shorter or longer timeframes. Just know that the bigger the timeframe, the bigger the expectations for the move and vice versa for smaller timeframes.
3. Set your stop
Set your stop immediately (or automatically) after entering the trade based on your plan's risk area.
Get stopped out if the trade doesn't work.
4. Trim at targets, consider adding, and move stop
Trim your position as price reaches your target(s).
Consider adding to your position based on the same entry options from step #2.
Move your stop up to your entry point, so the trade can never go red on you.
5. Stay in the trade
Repeat the process in step #4 until you're out of shares/contracts or the trend breaks.
Use a 9 EMA on varying timeframes (timeframe is based the original plan or expected move), and stay in the trade until candles start closing on the opposite side of the 9 EMA.
6. Rinse and repeat
There are many different setups and variables to consider in any trade, but this basic process is the foundation to focus on and improve on over time.
As you become more and more comfortable with the process, you can apply it to every setup and trade. Mastering this process is one major key to becoming a consistently profitable trader.
Trendy Trading Terminology
Terminology Note: You can also type an exclamation point and the acronym you don't understand (e.g. "!YE") within the Discord chatroom to automatically reveal the definition on the fly.
TR3ND - An acronym to help us remember the Trendy Methodology T = Time Frame R = Range 3 = 3:1 Risk-to-reward ratio N = News as a catalyst to drive price to or from the Edges D = Demand & Supply
EDGE - A price level that is seen as a supply or demand target while in a position, as well as a price level for reversal/stalling when looking to enter a position
WE - The Weekly Edge, a supply or demand level based on a weekly timeframe
ME - The Monthly Edge, a supply or demand level based on a monthly timeframe
YE - The Yearly Edge, a supply or demand level based on a yearly timeframe
PMZ - The Pre-Market Zone, a zone of price for the ticker developed using pre-market trading data that should be considered as a turning point during intraday action
LIS - The Line In the Sand, a price level that will determine if we are bearish (under the LIS) or bullish (over the LIS) during intraday action
HH - Higher High
LL - Lower Low
Inside Candle - In Trendy Trading terminology, any candle that closes within the body of the previous candle. An inside candle is necessary in creating the ever-important Inside And Up (IAU) and Inside And Down (IAD) candle formations. An inside candle can occur on any timeframe.
Note: There can be multiple inside candles as the process of creating a new IAU or IAD candle formation cannot begin again until at least one candle closes outside of the origin candle.
IAU - Inside And Up - a candle formation where there is either a break-up or break-down candle, then one (or more) inside candles, followed by a break of the inside candle's body to the upside. This formation creates some supply or demand. It can form in the direction of the current trend (for potential continuation) OR against it (for potential reversal). It can occur on any timeframe.
IAD - Inside And Down - a candle formation where there is either a break-up or break-down candle, then one (or more) inside candles, followed by a break of the inside candle's body to the downside. This formation creates some supply or demand. It can form in the direction of the current trend (for potential continuation) OR against it (for potential reversal). It can occur on any timeframe.
BANDS - The Trendy-specific EMA lines and cloud using three EMAs
ATR - Average True Range, the average range a ticker has in a given time frame
THE FIBS(often referred to as these percentage levels: 23.6, 38.2, 50, 61.8, 76.4, and 88.7) - These are the Trendy-specific fibonacci levels that are used to determine what bullish or bearish (or neither!) channel the ticker is currently trading within
ACCELERATOR - a price level in which we watch for a quick move to the upper edge of the time frame
DECELERATOR - a price level in which we watch for a quick move to the lower edge of the time frame
DELTA - An important option "Greek", the measure of the rate of change in an option's price for a $1 move in the underlying stock or index. E.g. A .30 delta is estimated to return $30 for every $1 the underlying ticker moves
GO BID - When buyers begin to overwhelm the sellers (i.e. there are more willing buyers than willing sellers in a given moment and the price moves up)
GO ASK - When sellers begin to overwhelm the buyer (i.e. there are more willing sellers than willing buyers in a given moment and the price moves down)
NEED A DEFINITION THAT'S NOT HERE? Direct message a moderator within the Discord chatroom or let us know here.
Weekly Broad Market Analysis Videos
Review how we did in the previous week and look ahead to the upcoming week with Jon's weekly, broad market analysis videos. Mark your charts in the same way and be prepared for the upcoming week!
This cycle is Trendy Trading's ideal market cycle for trade setups. A trending cycle means that the overall market is moving relatively free-and-easy between or beyond supply and demand. When the overall market is making fluid moves to the upside or downside, we can scan for and capitalize on more tradable assets that are making similar moves. The trending cycle tends to follow after multiple days of consolidation and chop.
How to trade this cycle: Both intraday and swing trades tend to have an even higher probability of success during this cycle, so more setups, alerts, and trade plans exist.
Trending Cycle Example (SPY Daily):
2. Choppy Cycle
A choppy cycle means that the overall market is uncertain of its overall direction and tends to chop up and down within a range. When the overall market is indecisive, we focus on shorter-term intraday trades and scalp setups. However, we continue to monitor bigger trades as they begin to breakout or breakdown out of the range. The choppy cycle tends to follow after big moves (up or down) in the market.
How to trade this cycle: Longer-term swing trades require much more patience during a choppy cycle. Make sure you are sized correctly on swing trades to help manage your emotions while they chop around for - potentially - days or weeks at a time. Instead, focus the bulk of your energy on short intraday or scalp trades, which require a lot less patience.
Choppy Cycle Example (SPY Daily):
Allocation and Position Sizing
In order to be a calm and consistent trader, it's important to feel comfortable in every trade. Knowing how much size to have on each trade BEFORE you start a trade will go a long way in keeping you comfortable.
At Trendy Trading, each trader uses a baseline formula to determine their FULL size and STARTER size positions. This way, even if a trade goes against you, you already know how much you will lose (and that loss should be a comfortable amount).
Furthermore, these baseline allocation numbers change based on the type of market cycle we are in (Trending or Choppy).
To access these strategies in video form, please visit your "Video Library" tab above.
All "alerts" at Trendy Trading are in a journal format in the #trendy-alerts-journal channel in Discord. Jon and any other moderators will never alert completely blind trades, but rather they will alert their trade ideas and blueprints. (And only IF they entered themselves, they will mention where they entered.)
Below are a few types of journal alerts that might appear and how to interpret them.
How to read the alerts journal
Typical starter/swing alert
Example: "STARTED MMM 165 CALL EXP 20 MAR. PAID 2.15" How to read:
STARTED = A starter means entering a new position with a small fraction of your typical "full" trade size. For example, if your full trade size is $2,000 on a trade, a starter may mean 10% of this, or $200 worth. If the trade goes in our favor, we can add up to full size. If it goes against us, we can cut for a much smaller loss than if we already had full size.
MMM = ticker symbol
165 CALL = the 165 strike for a directional call
EXP 20 MAR = the expiration date for the given strike
PAID 2.15 = what Jon paid for the entry (to give you a baseline idea before you enter)
Typical scalp alert
Example: "AAPL SCALP / ABOVE $282.95 / LONG / STOP $1.2 / CALLS OR EQUITY / TARGETS $282.50-$288/$295" How to read:
When the market is choppy, Jon may look to provide Scalp trade opportunities. However, they usually happen too fast for Jon to alert his entries and exits. Instead, Jon will "condition" the trade if it looks to be setting up. He will put "SCALP" in the alert so you know that it's an opportunity for you trade it on your own if you'd like to.
AAPL = ticker
ABOVE $282.95 = the level to wait for price to break before entering
LONG = long or short
STOP $1.2 = The risk level on the ticker (which is the underlying stock if playing options). In this case, your stop risk is $1.20 under $282.95, or $281.75.
CALLS OR EQUITY = you can choose to trade this setup with options or equity/shares
TARGETS $282.50-$288/$295 = if the trade moves in your favor, these can be good targets for profit-taking
Other common alert journal terms
Added: Used when adding to a current position / previous starter position
Stopped / Stops: Used when stopped out of a position or if stops are being adjusted
Trim: Used when taking partial profits at targets (targets are often noted as T1, T2, or T3)
Trendy Trade Plan strategies primarily focus on the trade ideas and setups brought to you by Jon, other moderators, and members within Discord's #main-chat and "Trade Setups" channels. They will often be alerted in the #trendy-alerts-journal as well (see the Trade Idea Alert Types tab above for instructions).
Trendy Trade Plan Strategies
#daily-focus Discord channel
1. Each morning, click the "#daily-focus" trades channel 2. Jon will place 1-3 "focus trade" blueprints within this channel - complete with entries, targets, risk, and explanation, as well if the trade is an intraday and/or swing trade and if it can be played with equity and/or options (and if options, which strike and expiration). Finally, Jon will add a screenshot of the blueprint. 3. Write down and/or copy over Jon's blueprint levels and zones to your own charts. 4. Execute the trade based on Jon's blueprint but with your personal allocation and risk rules.
Example:
#trade-plans Discord channel
1. Periodically, check the "#trade-plans" trades channel 2. Jon will place several swing trade blueprints within this channel 3. Write down and/or copy over Jon's blueprint levels and zones to your own charts 4. Execute the swing trades based on Jon's blueprint but with your personal allocation and risk rules
Example:
#futures Discord channel
1. Each day/night, click the "#futures" trade channel 2. Jon will place screenshot blueprints of futures tickers within this channel (ES, CL, NQ, etc.) 3. Write down and/or copy over Jon's blueprint levels and zones to your own charts 4. Execute the futures trades based on Jon's blueprint but with your personal allocation and risk rules Example:
#broad-market Discord channel
1. Each Sunday night, click the "#broad-market" trade setup channel 2. Jon will place screenshot blueprints of broad market futures, ETFs, and market internal indicators within this channel (SPY, QQQ, /ZB, $DXY, $PCALL, VIX, SKEW, /GC, etc.) 3. Write down and/or copy over Jon's blueprint levels and zones to your own charts 4. Execute trades based on Jon's blueprint but with your personal allocation and risk rules Example:
Overnight ETF trade strategy
This setup, uses the DAY candle close of the broad market ETFs as an entry trigger for calls or puts to hold overnight. Using the broad market ETF blueprints, it's highly probable that if the ETF closes above or below Jon's pre-marked neutral zones (the yellow boxes on his charts), then the ETF will move higher (if the day close is above) or lower (if the day close is below) the following day.
1. Each Sunday night, click the "#broad-market" trade setup channel 2. Jon will place screenshot blueprints of broad market futures, ETFs, and market internal indicators within this channel (SPY, QQQ, /ZB, $DXY, $PCALL, VIX, SKEW, /GC, etc.) 3. Copy over Jon's neutral zones (yellow boxes) and targets of any of the market ETFs to your own charts 4. If a DAY candle closes over or under the neutral zone during the upcoming week, buy directional options (calls if the close is over, puts if the close is under). ToS (and maybe others) allow you to buy these ETF options after the Regular Trading Hours close so long as it's within 15 minutes of the close. 5. For your options, you may choose the strike and expiration you'd like. Buying Weekly expiration .30 delta calls/puts is usually a good choice. Please mind your overnight allocation and risk rules. 6. If the trade is favorable upon the next day's open, close for profits and/or manage the trade as usual using targets.
Note: If the day close is not above or below the yellow box, then this setup is invalid - the ETF is still in the neutral zone. Example:
Trendy trade plans are detailed blueprints of high-probability trades developed by Jon daily and weekly. Each plan is mapped out using the Trendy Methodology. You can find them in any of the Setups and Trade Plans channels in Discord. Please study the below information and video tutorial on how to execute a trade plan.
How to Read & Execute a Trade Plan
Jon will provide a chart like this example of a swing Trade Plan for TRIP. Not all of them will look identical, but they all will provide the right information to execute the trade.
HOW TO READ & EXECUTE THE PLAN INFO:
You will often see a lot of elements/lines/indicators on the chart - you don't need to worry about most of these in order to take the trade. To execute a trade plan, you just need to know how to apply the attached plan info to your trade.
The trade plan ticker
TRADE LENGTH: How long we're expecting the trade to take Intraday - We’re looking for short-term, 10 min - 1-day moves. Our focus and risk levels are based on an intraday chart. However, these can turn into swings *if* the trend is strong. Swing - We’re looking for mid-term, 2-day to 2+ week moves. Our focus and risk levels are based on daily and weekly charts only. These take more patience and wider stops.
SETUP: The reason why Jon selected this particular ticker to trade
Pro Members - please visit your Pro Setups section to learn about the setup.
Trade Plan Members - If you’d like to learn what makes these proprietary setups work, upgrade to Trendy Pro. However, knowing why the setups work is not necessary in order to execute the trade.
ENTRY: Maybe the most crucial part in executing a trade plan - When do you enter? How do you determine how much size to put into the position?
The Trendy Process (see the Process Tab) should be followed for EVERY entry.
The default entry process is: IF price reaches the plan's entry level, THEN wait for an “inside and up” (or inside and down if it’s a short entry) on a 10 minute chart. IF an IAU or IAD forms, enter the trade and place your stop at the risk level from the plan info. See the Terminology tab to learn what an IAU or IAD is.
The following means you’re front-running the process: 1. Waiting for an IAU or IAD on a timeframe that is less than 10mins (e.g. 5min, 1min, etc.) 2. Not waiting for the IAU or IAD to fully form before entering 3. Taking the trade on “momentum” - i.e. just taking the trade at the level and not waiting for an IAU or IAD to even start forming
If you want to front-run - Take your STARTER size first and add to the trade if it works. This way, if the trade fails, your loss is smaller. If the trade works, you can add into your full position size after an IAU or IAD forms, and your cost average will be better.
Having the right allocation means if the trade hits your STOP, you know exactly what you will lose - and be entirely okay with it. If you’re nervous in the trade, your allocation size is probably too big.
HOW TO TRADE USING IAUs & IADs
RISK: Where you place your STOP and how you calculate your position size/how much you could lose
Jon will notate risk based on a move in the ticker's price. His risk level will incorporate the Trendy process - where the STOP is placed on the opposite side of key support or resitance level.
If you're trading equity, you can simply place the STOP based on your entry point and the dollar amount provided.
If you're trading options, Jon will provide option delta ranges for you to choose from. You then must calculate how many contracts to buy based on your allocation size and the risk level provided for the given trade.
For example: If the risk level provided is $2 (i.e. $2 away from your entry point) and you choose a delta 30 strike, you know that if the underlying ticker moves $2 against you, you will lose about $30 per $1 move. So, in this case, you would lose about $60 per contract if you stopped out at the risk level ($2 risk x delta 30 option contracts = $60). If your allocation numbers say your full size risk amount is a $300 loss, then you can buy 5 delta 30 contracts and be comfortable getting stopped out (5 contracts with a delta 30 = $150 change in a $1 move in the underlying ticker. The risk is $2, so multiplied by $150 = $300).
This takes repetition to learn, but once you understand your numbers it all gets much faster.
NOTE: If you're late to the trade, consider ignoring the plan altogether and waiting for the next plan to set up. Don't FOMO! If you *do* get into the trade late, make sure to reduce your allocation size to match your now increased risk level.
For example: If the trade plan risk said $1 from the entry level, but you enter $1 later than the plan, your risk level should now be $2 away, not $1 away.
TARGETS: Where to trim, add to, or close your position if the plan is working Each trade plan typically provides 2 or more targets. You can take one or more of the following three actions at every target:
1. Trim - take some profits on part of your position
2. Add - wait for another IAU or IAD in the direction of the trade near the target and add to your positions. (Trimmering profits and adding back in at targets is a solid method to stay in a good trade.) 3. Close - if you’re happy with your profits or have run out of shares/contracts, close the position. You can also leave a few “runners” and attach a stop or trailing stop to them. Each time a target is reached, consider moving your stops one level up (or down if shorting) to ensure a profitable trade.
HOW TO EXECUTE A TRADE PLAN VIDEO TUTORIAL
HOW TO BEST PREPARE FOR THE TRADE AHEAD OF TIME: 1. Copy the levels over to your chart: Add the entry level, risk level, and target levels from the plan info to your own charts. 2. Prepare your orders: Determine your ideal your entry and exit points, as well as your share count or contract quantity purchase amount (including option strikes and expirations) based on entry and risk levels. Have them loaded and ready to submit if the trade plan sets up! 3. Set alerts on your chart: Set an alert (or multiple!) before the entry level would potentially be hit so you know when to get ready to submit your order. Once in the trade, place your stop. 4. Take the trade: Review in the info/video above AND the Trendy Trade Process 101 section (in the Methodology tab) to determine if and when you might enter the trade. Execute the trade!
Have additional questions? Drop them in the #❓-trade-plan-questions channel in Discord.
Trendy Pro (Legacy Member)
Note: As a legacy member, if you need to make changes to your account, you must do so through Paypal and not trendytrading.co
Trendy Trading uses a proven, proprietary trading Methodology and Process to earn consistent profits in any market.
The following few sections describe the overarching principles, trading process, and common terminology used in Jon's teaching sessions, trade plans, and between members.
Refer to this tab often if you desire to grasp the Trendy Trading system as fast as possible.
The 6 Trendy Methodology Principles
1. Having a process is a part of the process
Process = rules. Even if your specific entry and exit rules end up being slightly different variations of Jon's or another member's rules, one thing is non-negotiable for success in trading - have rules! Without rules (aka a process), then your trades are most likely being made on feelings, hope, and/or news. It's impossibly difficult to be consistently profitable if your decisions constantly change with the wind. Have a process and follow a process!
2. Know your numbers (money management)
Everyone's account size and risk tolerance is different. Determine for yourself how much of your total account size you are willing to lose per trade (1%, 2%, 2.5%?). Next, determine what percentage of your full trade size equals a starter position (10%, 20%, 50%?).
Every time you enter a trade, you should ask yourself these two questions: 1. If I enter here, what percentage of my full trade size amount should I use? Is this a starter position or an A+ setup (with full size) position? 2. If I enter here, and my risk level is there, and my trade size is $XYZ - if I get stopped out, will my loss equal my predetermined risk per trade? If it is more than your max risk, reduce your size or reduce your risk level.
Money management is personal. It's important to spend time to figure out what you're willing to risk on any given trade and to stick to the same numbers until you intentionally review and adjust them.
3. Wait for the trend, don't try to predict it
When the markets chop around (i.e. no trend), it makes trading even more difficult than it already is. At Trendy, we tend to trade smaller (in both size and reasonable targets) when the market is in a choppy cycle. However, when the market trends out of the choppiness (either up or down), trading becomes more fluid, easy, and calm.
While we could try and predict when the choppiness will end to get in at the best possible price, it's a guessing game at best and losses can pile up. Instead, we wait patiently until the choppiness ends and go with the flow once the trend begins again.
4. Use supply and demand areas as key levels
So where does trend usually begin or end? The Trendy Methodology studies supply and demand zones and uses them as key areas to watch for price to pivot OR eventually explode through and out the other side. It is important to look at multiple time frames when determining which supply and demand zones to pay attention to and when.
5. Know where you are in the current trend (measure)
We use specific fibonacci levels to help determine where we are in the trend. These levels tell us if we are bullish, bearish, or generally choppy depending on the time frame used. These levels can also be used as targets.
To sum it up, we use Trendy fibonacci levels as a sort of measuring tape to help us enter, stay in, and get out of trades at system-based prices.
6. Have a plan (entries, risk, targets), execute the plan
Every day, Jon incorporates all of the above principles to develop chart blueprints and daily trading plans. Whether you use Jon's blueprints or not, following the Trendy process means you know where to enter each trade, as well as where to stop out or take profits.
Finally, if you have a well-developed plan, it is your ultimate responsibility to take the trades that trigger your entry. And once you are in the trade, is then your responsibility to follow the plan. If you do not follow your plan, then it is difficult to ever know what truly works and what doesn't - and you will ride that emotional roller coaster until you do!
The Trendy Trade Process 101
1. Be ready with a plan
Refer to the Trendy Methodology section for more information, but every trade execution should have the following details already determined beforehand.
1. Plan/Setup: Entry, Stop, Targets 2. Amount you're willing to lose if stopped out (i.e. Risk) 3. Number of shares or contracts (including which strikes/deltas) to buy based on risk
All trade plans should consider the T.R.3.N.D.
T = Time frame R = Range 3 = 3:1 Reward-to-risk ratio N = News as a catalyst that moves price to an edge D = Demand and supply
2. Enter the trade
Every line on a Trendy blueprint is a high-probability entry point or target. While there are several variables to take into account to make the probabilities even higher (which you will learn over time), what you wait for or don't wait for before entering a trade is maybe the greatest variable. (i.e. TIMING!)
Here are a few entry options when price is at your entry level: 1. Most Conservative: Wait for an "inside and up/down" candle formation to close 2. Conservative: Wait for an "inside" candle to form and take the break of that candle up or down on the next candle 3. Aggressive: Only wait for a higher high (or lower low) or take the trade while the inside candle is still forming 4. Most Aggressive: Take the touch or break of an entry level based on momentum
Note: There are many different definitions of an "inside candle". At Trendy Trading we define an inside candle as one that closes within the body of the first candle.
Inside and up example:
Finally, the timeframe is also important. We often use a 10min timeframe for intraday plays, but you can use shorter or longer timeframes. Just know that the bigger the timeframe, the bigger the expectations for the move and vice versa for smaller timeframes.
3. Set your stop
Set your stop immediately (or automatically) after entering the trade based on your plan's risk area.
Get stopped out if the trade doesn't work.
4. Trim at targets, consider adding, and move stop
Trim your position as price reaches your target(s).
Consider adding to your position based on the same entry options from step #2.
Move your stop up to your entry point, so the trade can never go red on you.
5. Stay in the trade
Repeat the process in step #4 until you're out of shares/contracts or the trend breaks.
Use a 9 EMA on varying timeframes (timeframe is based the original plan or expected move), and stay in the trade until candles start closing on the opposite side of the 9 EMA.
6. Rinse and repeat
There are many different setups and variables to consider in any trade, but this basic process is the foundation to focus on and improve on over time.
As you become more and more comfortable with the process, you can apply it to every setup and trade. Mastering this process is one major key to becoming a consistently profitable trader.
Trendy Trading Terminology
Terminology Note: You can also type an exclamation point and the acronym you don't understand (e.g. "!YE") within the Discord chatroom to automatically reveal the definition on the fly.
TR3ND - An acronym to help us remember the Trendy Methodology T = Time Frame R = Range 3 = 3:1 Risk-to-reward ratio N = News as a catalyst to drive price to or from the Edges D = Demand & Supply
EDGE - A price level that is seen as a supply or demand target while in a position, as well as a price level for reversal/stalling when looking to enter a position
WE - The Weekly Edge, a supply or demand level based on a weekly timeframe
ME - The Monthly Edge, a supply or demand level based on a monthly timeframe
YE - The Yearly Edge, a supply or demand level based on a yearly timeframe
PMZ - The Pre-Market Zone, a zone of price for the ticker developed using pre-market trading data that should be considered as a turning point during intraday action
LIS - The Line In the Sand, a price level that will determine if we are bearish (under the LIS) or bullish (over the LIS) during intraday action
HH - Higher High
LL - Lower Low
Inside Candle - In Trendy Trading terminology, any candle that closes within the body of the previous candle. An inside candle is necessary in creating the ever-important Inside And Up (IAU) and Inside And Down (IAD) candle formations. An inside candle can occur on any timeframe.
Note: There can be multiple inside candles as the process of creating a new IAU or IAD candle formation cannot begin again until at least one candle closes outside of the origin candle.
IAU - Inside And Up - a candle formation where there is either a break-up or break-down candle, then one (or more) inside candles, followed by a break of the inside candle's body to the upside. This formation creates some supply or demand. It can form in the direction of the current trend (for potential continuation) OR against it (for potential reversal). It can occur on any timeframe.
IAD - Inside And Down - a candle formation where there is either a break-up or break-down candle, then one (or more) inside candles, followed by a break of the inside candle's body to the downside. This formation creates some supply or demand. It can form in the direction of the current trend (for potential continuation) OR against it (for potential reversal). It can occur on any timeframe.
BANDS - The Trendy-specific EMA lines and cloud using three EMAs
ATR - Average True Range, the average range a ticker has in a given time frame
THE FIBS(often referred to as these percentage levels: 23.6, 38.2, 50, 61.8, 76.4, and 88.7) - These are the Trendy-specific fibonacci levels that are used to determine what bullish or bearish (or neither!) channel the ticker is currently trading within
ACCELERATOR - a price level in which we watch for a quick move to the upper edge of the time frame
DECELERATOR - a price level in which we watch for a quick move to the lower edge of the time frame
DELTA - An important option "Greek", the measure of the rate of change in an option's price for a $1 move in the underlying stock or index. E.g. A .30 delta is estimated to return $30 for every $1 the underlying ticker moves
GO BID - When buyers begin to overwhelm the sellers (i.e. there are more willing buyers than willing sellers in a given moment and the price moves up)
GO ASK - When sellers begin to overwhelm the buyer (i.e. there are more willing sellers than willing buyers in a given moment and the price moves down)
NEED A DEFINITION THAT'S NOT HERE? Direct message a moderator within the Discord chatroom or let us know here.
Weekly Broad Market Analysis Videos
Review how we did in the previous week and look ahead to the upcoming week with Jon's weekly, broad market analysis videos. Mark your charts in the same way and be prepared for the upcoming week!
This cycle is Trendy Trading's ideal market cycle for trade setups. A trending cycle means that the overall market is moving relatively free-and-easy between or beyond supply and demand. When the overall market is making fluid moves to the upside or downside, we can scan for and capitalize on more tradable assets that are making similar moves. The trending cycle tends to follow after multiple days of consolidation and chop.
How to trade this cycle: Both intraday and swing trades tend to have an even higher probability of success during this cycle, so more setups, alerts, and trade plans exist.
Trending Cycle Example (SPY Daily):
2. Choppy Cycle
A choppy cycle means that the overall market is uncertain of its overall direction and tends to chop up and down within a range. When the overall market is indecisive, we focus on shorter-term intraday trades and scalp setups. However, we continue to monitor bigger trades as they begin to breakout or breakdown out of the range. The choppy cycle tends to follow after big moves (up or down) in the market.
How to trade this cycle: Longer-term swing trades require much more patience during a choppy cycle. Make sure you are sized correctly on swing trades to help manage your emotions while they chop around for - potentially - days or weeks at a time. Instead, focus the bulk of your energy on short intraday or scalp trades, which require a lot less patience.
Choppy Cycle Example (SPY Daily):
Allocation and Position Sizing
In order to be a calm and consistent trader, it's important to feel comfortable in every trade. Knowing how much size to have on each trade BEFORE you start a trade will go a long way in keeping you comfortable.
At Trendy Trading, each trader uses a baseline formula to determine their FULL size and STARTER size positions. This way, even if a trade goes against you, you already know how much you will lose (and that loss should be a comfortable amount).
Furthermore, these baseline allocation numbers change based on the type of market cycle we are in (Trending or Choppy).
All "alerts" at Trendy Trading are in a journal format in the #trendy-alerts-journal channel in Discord. Jon and any other moderators will never alert completely blind trades, but rather they will alert their trade ideas and blueprints. (And only IF they entered themselves, they will mention where they entered.)
Below are a few types of journal alerts that might appear and how to interpret them.
How to read the alerts journal
Typical starter/swing alert
Example: "STARTED MMM 165 CALL EXP 20 MAR. PAID 2.15" How to read:
STARTED = A starter means entering a new position with a small fraction of your typical "full" trade size. For example, if your full trade size is $2,000 on a trade, a starter may mean 10% of this, or $200 worth. If the trade goes in our favor, we can add up to full size. If it goes against us, we can cut for a much smaller loss than if we already had full size.
MMM = ticker symbol
165 CALL = the 165 strike for a directional call
EXP 20 MAR = the expiration date for the given strike
PAID 2.15 = what Jon paid for the entry (to give you a baseline idea before you enter)
Typical scalp alert
Example: "AAPL SCALP / ABOVE $282.95 / LONG / STOP $1.2 / CALLS OR EQUITY / TARGETS $282.50-$288/$295" How to read:
When the market is choppy, Jon may look to provide Scalp trade opportunities. However, they usually happen too fast for Jon to alert his entries and exits. Instead, Jon will "condition" the trade if it looks to be setting up. He will put "SCALP" in the alert so you know that it's an opportunity for you trade it on your own if you'd like to.
AAPL = ticker
ABOVE $282.95 = the level to wait for price to break before entering
LONG = long or short
STOP $1.2 = The risk level on the ticker (which is the underlying stock if playing options). In this case, your stop risk is $1.20 under $282.95, or $281.75.
CALLS OR EQUITY = you can choose to trade this setup with options or equity/shares
TARGETS $282.50-$288/$295 = if the trade moves in your favor, these can be good targets for profit-taking
Other common alert journal terms
Added: Used when adding to a current position / previous starter position
Stopped / Stops: Used when stopped out of a position or if stops are being adjusted
Trim: Used when taking partial profits at targets (targets are often noted as T1, T2, or T3)
Trendy Trade Plan strategies primarily focus on the trade ideas and setups brought to you by Jon, other moderators, and members within Discord's #main-chat and "Trade Setups" channels. They will often be alerted in the #trendy-alerts-journal as well (see the Trade Idea Alert Types tab above for instructions).
Trendy Trade Plan Strategies
#daily-focus Discord channel
1. Each morning, click the "#daily-focus" trades channel 2. Jon will place 1-3 "focus trade" blueprints within this channel - complete with entries, targets, risk, and explanation, as well if the trade is an intraday and/or swing trade and if it can be played with equity and/or options (and if options, which strike and expiration). Finally, Jon will add a screenshot of the blueprint. 3. Write down and/or copy over Jon's blueprint levels and zones to your own charts. 4. Execute the trade based on Jon's blueprint but with your personal allocation and risk rules.
Example:
#trade-plans Discord channel
1. Periodically, check the "#trade-plans" trades channel 2. Jon will place several swing trade blueprints within this channel 3. Write down and/or copy over Jon's blueprint levels and zones to your own charts 4. Execute the swing trades based on Jon's blueprint but with your personal allocation and risk rules
Example:
#futures Discord channel
1. Each day/night, click the "#futures" trade channel 2. Jon will place screenshot blueprints of futures tickers within this channel (ES, CL, NQ, etc.) 3. Write down and/or copy over Jon's blueprint levels and zones to your own charts 4. Execute the futures trades based on Jon's blueprint but with your personal allocation and risk rules Example:
#broad-market Discord channel
1. Each Sunday night, click the "#broad-market" trade setup channel 2. Jon will place screenshot blueprints of broad market futures, ETFs, and market internal indicators within this channel (SPY, QQQ, /ZB, $DXY, $PCALL, VIX, SKEW, /GC, etc.) 3. Write down and/or copy over Jon's blueprint levels and zones to your own charts 4. Execute trades based on Jon's blueprint but with your personal allocation and risk rules Example:
Overnight ETF trade strategy
This setup, uses the DAY candle close of the broad market ETFs as an entry trigger for calls or puts to hold overnight. Using the broad market ETF blueprints, it's highly probable that if the ETF closes above or below Jon's pre-marked neutral zones (the yellow boxes on his charts), then the ETF will move higher (if the day close is above) or lower (if the day close is below) the following day.
1. Each Sunday night, click the "#broad-market" trade setup channel 2. Jon will place screenshot blueprints of broad market futures, ETFs, and market internal indicators within this channel (SPY, QQQ, /ZB, $DXY, $PCALL, VIX, SKEW, /GC, etc.) 3. Copy over Jon's neutral zones (yellow boxes) and targets of any of the market ETFs to your own charts 4. If a DAY candle closes over or under the neutral zone during the upcoming week, buy directional options (calls if the close is over, puts if the close is under). ToS (and maybe others) allow you to buy these ETF options after the Regular Trading Hours close so long as it's within 15 minutes of the close. 5. For your options, you may choose the strike and expiration you'd like. Buying Weekly expiration .30 delta calls/puts is usually a good choice. Please mind your overnight allocation and risk rules. 6. If the trade is favorable upon the next day's open, close for profits and/or manage the trade as usual using targets.
Note: If the day close is not above or below the yellow box, then this setup is invalid - the ETF is still in the neutral zone. Example:
Trendy trade plans are detailed blueprints of high-probability trades developed by Jon daily and weekly. Each plan is mapped out using the Trendy Methodology. You can find them in any of the Setups and Trade Plans channels in Discord. Please study the below information and video tutorial on how to execute a trade plan.
How to Read & Execute a Trade Plan
Jon will provide a chart like this example of a swing Trade Plan for TRIP. Not all of them will look identical, but they all will provide the right information to execute the trade.
HOW TO READ & EXECUTE THE PLAN INFO:
You will often see a lot of elements/lines/indicators on the chart - you don't need to worry about most of these in order to take the trade. To execute a trade plan, you just need to know how to apply the attached plan info to your trade.
The trade plan ticker
TRADE LENGTH: How long we're expecting the trade to take Intraday - We’re looking for short-term, 10 min - 1-day moves. Our focus and risk levels are based on an intraday chart. However, these can turn into swings *if* the trend is strong. Swing - We’re looking for mid-term, 2-day to 2+ week moves. Our focus and risk levels are based on daily and weekly charts only. These take more patience and wider stops.
SETUP: The reason why Jon selected this particular ticker to trade
Pro Members - please visit your Pro Setups section to learn about the setup.
Trade Plan Members - If you’d like to learn what makes these proprietary setups work, upgrade to Trendy Pro. However, knowing why the setups work is not necessary in order to execute the trade.
ENTRY: Maybe the most crucial part in executing a trade plan - When do you enter? How do you determine how much size to put into the position?
The Trendy Process (see the Process Tab) should be followed for EVERY entry.
The default entry process is: IF price reaches the plan's entry level, THEN wait for an “inside and up” (or inside and down if it’s a short entry) on a 10 minute chart. IF an IAU or IAD forms, enter the trade and place your stop at the risk level from the plan info. See the Terminology tab to learn what an IAU or IAD is.
The following means you’re front-running the process: 1. Waiting for an IAU or IAD on a timeframe that is less than 10mins (e.g. 5min, 1min, etc.) 2. Not waiting for the IAU or IAD to fully form before entering 3. Taking the trade on “momentum” - i.e. just taking the trade at the level and not waiting for an IAU or IAD to even start forming
If you want to front-run - Take your STARTER size first and add to the trade if it works. This way, if the trade fails, your loss is smaller. If the trade works, you can add into your full position size after an IAU or IAD forms, and your cost average will be better.
Having the right allocation means if the trade hits your STOP, you know exactly what you will lose - and be entirely okay with it. If you’re nervous in the trade, your allocation size is probably too big.
HOW TO TRADE USING IAUs & IADs
RISK: Where you place your STOP and how you calculate your position size/how much you could lose
Jon will notate risk based on a move in the ticker's price. His risk level will incorporate the Trendy process - where the STOP is placed on the opposite side of key support or resitance level.
If you're trading equity, you can simply place the STOP based on your entry point and the dollar amount provided.
If you're trading options, Jon will provide option delta ranges for you to choose from. You then must calculate how many contracts to buy based on your allocation size and the risk level provided for the given trade.
For example: If the risk level provided is $2 (i.e. $2 away from your entry point) and you choose a delta 30 strike, you know that if the underlying ticker moves $2 against you, you will lose about $30 per $1 move. So, in this case, you would lose about $60 per contract if you stopped out at the risk level ($2 risk x delta 30 option contracts = $60). If your allocation numbers say your full size risk amount is a $300 loss, then you can buy 5 delta 30 contracts and be comfortable getting stopped out (5 contracts with a delta 30 = $150 change in a $1 move in the underlying ticker. The risk is $2, so multiplied by $150 = $300).
This takes repetition to learn, but once you understand your numbers it all gets much faster.
NOTE: If you're late to the trade, consider ignoring the plan altogether and waiting for the next plan to set up. Don't FOMO! If you *do* get into the trade late, make sure to reduce your allocation size to match your now increased risk level.
For example: If the trade plan risk said $1 from the entry level, but you enter $1 later than the plan, your risk level should now be $2 away, not $1 away.
TARGETS: Where to trim, add to, or close your position if the plan is working Each trade plan typically provides 2 or more targets. You can take one or more of the following three actions at every target:
1. Trim - take some profits on part of your position
2. Add - wait for another IAU or IAD in the direction of the trade near the target and add to your positions. (Trimmering profits and adding back in at targets is a solid method to stay in a good trade.) 3. Close - if you’re happy with your profits or have run out of shares/contracts, close the position. You can also leave a few “runners” and attach a stop or trailing stop to them. Each time a target is reached, consider moving your stops one level up (or down if shorting) to ensure a profitable trade.
HOW TO EXECUTE A TRADE PLAN VIDEO TUTORIAL
HOW TO BEST PREPARE FOR THE TRADE AHEAD OF TIME: 1. Copy the levels over to your chart: Add the entry level, risk level, and target levels from the plan info to your own charts. 2. Prepare your orders: Determine your ideal your entry and exit points, as well as your share count or contract quantity purchase amount (including option strikes and expirations) based on entry and risk levels. Have them loaded and ready to submit if the trade plan sets up! 3. Set alerts on your chart: Set an alert (or multiple!) before the entry level would potentially be hit so you know when to get ready to submit your order. Once in the trade, place your stop. 4. Take the trade: Review in the info/video above AND the Trendy Trade Process 101 section (in the Methodology tab) to determine if and when you might enter the trade. Execute the trade!
Have additional questions? Drop them in the #❓-trade-plan-questions channel in Discord.
