The ZoneTraderPro trend trade is the basic trading pattern of the system. The theory behind the trend trade is that when a trend is established the market will continue in that trend, in the pattern of profit taking and trend resumption.

In the picture below, the Trend trade has a T and an arrow. The Counter Trend trade, with a C arrow, is the typical area where the smart money will start to cover the bets they made when the trend initiated. At this point, the retail traders finally have a trading signal, but quickly find out they are the dumb money and weak hands, as the institutional traders cover their trades.

ZoneTraderPro prints these areas of support and resistance in advance of the market trading at these zones. If you know where those zones are in advance, you can set limit orders at these zones.

ZoneTraderPro also uses a simple, but extremely effective system to filter its trades. That strategy is called the TICK filter strategy. The TICK filter strategy divides the market moves into its' buy and sell programs. The TICK strategy will simply compare the current value of the TICK to the last buy/sell program to determine strength.

Let us look at the same chart with the TICK strategy applied. First we need two reference points. The last buy program had a TICK high of 411 and the last sell program had a TICK low of -689. The colors are black because they are reference numbers. As the market traded into the counter trend support area, the TICK made a lower low of -832, and this is colored red, as this is bearish, and a good sign for an upcoming short trade.

As the market trades into the intermediate resistance zone, where the trend trade will be initiated, the TICK high was only 339 as the market hit the zone. Again this is red, because 339 is less than the previous TICK high of 411. The market has tipped its' hand and shown you the sellers were in control, and ZoneTraderPro showed you were to sell for a 5 point trade.