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1. BreakoutBreakout strategies center around when the price clears a specified level on your chart, with increased volume. The breakout trader enters into a long position after the asset or security breaks above resistance. Alternatively, you enter a short position once the stock breaks below support.
After an asset or security trades beyond the specified price barrier, volatility usually increases and prices will often trend in the direction of the breakout.
You need to find the right instrument to trade. When doing this bear in mind the asset’s support and resistance levels. The more frequently the price has hit these points, the more validated and important they become.
Entry PointsThis part is nice and straightforward. Prices set to close and above resistance levels require a bearish position. Prices set to close and below a support level need a bullish position.
Plan your exitsUse the asset’s recent performance to establish a reasonable price target. Using chart patterns will make this process even more accurate. You can calculate the average recent price swings to create a target. If the average price swing has been 3 points over the last several price swings, this would be a sensible target. Once you’ve reached that goal you can exit the trade and enjoy the profit.
2. ScalpingOne of the most popular strategies is scalping. It’s particularly popular in the forex market, and it looks to capitalise on minute price changes. The driving force is quantity. You will look to sell as soon as the trade becomes profitable. This is a fast-paced and exciting way to trade, but it can be risky. You need a high trading probability to even out the low risk vs reward ratio.
Be on the lookout for volatile instruments, attractive liquidity and be hot on timing. You can’t wait for the market, you need to close losing trades as soon as possible.
3. MomentumPopular amongst trading strategies for beginners, this strategy revolves around acting on news sources and identifying substantial trending moves with the support of high volume. There is always at least one stock that moves around 20-30% each day, so there’s ample opportunity. You simply hold onto your position until you see signs of reversal and then get out.
Alternatively, you can fade the price drop. This way round your price target is as soon as volume starts to diminish.
This strategy is simple and effective if used correctly. However, you must ensure you’re aware of upcoming news and earnings announcements. Just a few seconds on each trade will make all the difference to your end of day profits.
4. ReversalAlthough hotly debated and potentially dangerous when used by beginners, reverse trading is used all over the world. It’s also known as trend trading, pull back trending and a mean reversion strategy.
This strategy defies basic logic as you aim to trade against the trend. You need to be able to accurately identify possible pullbacks, plus predict their strength. To do this effectively you need in-depth market knowledge and experience.
The ‘daily pivot’ strategy is considered a unique case of reverse trading, as it centers on buying and selling the daily low and high pullbacks/reverse.
5. Using Pivot PointsA day trading pivot point strategy can be fantastic for identifying and acting on critical support and/or resistance levels. It is particularly useful in the forex market. In addition, it can be used by range-bound traders to identify points of entry, while trend and breakout traders can use pivot points to locate key levels that need to break for a move to count as a breakout.
Calculating Pivot PointsA pivot point is defined as a point of rotation. You use the prices of the previous day’s high and low, plus the closing price of a security to calculate the pivot point.
Note that if you calculate a pivot point using price information from a relatively short time frame, accuracy is often reduced.
So, how do you calculate a pivot point?
ApplicationWhen applied to the FX market, for example, you will find the trading range for the session often takes place between the pivot point and the first support and resistance levels. This is because a high number of traders play this range.
It’s also worth noting, this is one of the systems & methods that can be applied to indexes too. For example, it can help form an effective S&P day trading strategy
6. Moving Average CrossoverYou will need three moving average lines:
So, You’ll open a position when the moving average line crosses in one direction and you’ll close the position when it crosses back the opposite way.
How can you establish there’s definitely a trend? You know the trend is on if the price bar stays above or below the 100-period line.
the source : https://www.daytrading.com/strategies
In the Woodie’s pivot point, there is more weight on the closing price. The calculation is similar to the standard pivots formula. The calculation is as follows: R2 = PP + (High – Low) R1 = (2 X PP) – Low. PP = (High + Low) + (2 x Closing Price) / 4. S1 = (2 X PP) – High. S2 = PP – (High + Low) Camarilla Pivot Points. Another pivot point that traders use are camarilla pivot points ... As you can see from the chart, the price met resistance at R1 and started pulling back and traded to the pivot point. This in an intraday chart. 15 minute to be specific. So you can factor this in as you day trade the forex market. In my complete forex trading system, I explain in details how I use the pivot point, macd and moving averages. So ... PIVOT POINTS IN FOREX, by StraightForex Trading Discussion Home; Forums; Trades; News ... And if the market is trading below this 1.2439 the bears are winning the battle pulling prices lower. On both cases this condition is likely to sustain until the next session. Since the Forex market is a 24hr market (no close or open from day to day) there is a eternal battle on deciding at white times we ... GBPUSD 2014 yearly Forex pivots may show excellent trading opportunities ; This continues a series of articles dedicated to revealing the yearly pivot points of each of the major currency pairs. This article is a “cheat sheet” of sort that you may want to print out and have handy so when price action tags any of these potential support and resistance levels, you will be ready to act. Past ... And if the market is trading below this 1.2439 the bears are winning the battle pulling prices lower. On both cases this condition is likely to sustain until the next session. Since the Forex market is a 24hr market (no close or open from day to day) there is a eternal battle on deciding at white time we should take the open, close, high and low from each session. From our point of view, the ... The same applies to the Forex market, the pivot point is a level in which the sentiment of the market changes from "bull" to "bear" or vice versa. If the market breaks this level up, then the sentiment is said to be a bull market and it is likely to continue its way up, on the other hand, if the market breaks this level down, then the sentiment is bear, and it is expected to continue its way ... Effective Forex Pivot Point Trading System – Power Profit Tool For an Effective Forex Trading System. February 20, 2011 This is where pivot points can be used in an effective Forex trading system. They are the point at which market sentiment has effectively switched from over bought to over sold or bearish to bullish, or any way you want to describe a market switching directions. And the ...
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