A Great Trending Day For The S&P500

As a trend follower, you only make real money when the market trends. Today was one of those days where we were able to not only make some money, but protect ourselves from larger losses. I've included a screen capture and will continue to do so moving forward so that not only can you see the value of a good trend following indicator, but also visually see where we were wrong and where we were right. Today was a winning day but I also have a lot of losing days. The trick is to ensure that when looking long term, your winning trades end up being much larger than your losing trades.

At 9:30 EST (When the American markets officially open) I took the first buy signal because I had a blue bar trading above the larger red dots (larger trend sell signal). Price popped up, hit the upper bollinger band and then slowly reversed until we got out of the trade when the blue bars turned to red. I'm a conservative trader so I always only sell the market only when the close of the red bars drop below the bottom of the large red dots. I sold the market @ 11:06 EST and followed the market all the way down until exiting @16:00 EST (when price action generally slows down because of the impending close of the market).

The S&P500 has been moving fairly choppily upwards for a long while now when looking at the daily chart. Hopefully volatility will start to pick up again so we can get back to making more money. Where it goes from here I have no clue but like always, everyday I just mindlessly take buy and sell signals, waiting for the market to give me what it can.