Trading Strategy

 

Support and Resistant Strategy


Trader defines a flat market with clear support and resistance levels. Trading is within the range until price breakout. Stop loss is put outside the channel.

  • Timeframes: All, preferably from 1H.
  • Type: no trend (flat)

Breakouts Strategy


When price trades in a range for some time, sooner or later we'll see a breakout either up or down. Usually the breakout is very fast and volatile, so it is possible to open a trade in the same direction. Stop order is usually above the support line or below the resistance but not too close to avoid common movements and flat widening. To be sure, it is always wise to wait until at least one price bar closes below/above the flat-range line.

  • Timeframes: All, preferably from 1H.
  • Type: no trend (flat)

Moving average


Perhaps one of the most popular strategies. Please note that trader will get much more signals trading on smaller time frames which puts more emotional pressure. Any instrument can be chosen and any period can be set for the moving average. Back-testing on history (at least 1 year period) is required to define if chosen parameters are correct. Stop loss is usually set above/below the moving average but not too close.

  • Timeframes: All, preferably from 1H.
  • Type: directional (flat)

Oscillators


Oscillators measure strenght/weakness of a selected instrument. Oscillators work well during flat markets when there are no trends. Trader can choose an instrument and indicator's parametres according to personal needs and back-testing results. Oscillators point out good entry points whenever market is oversold or –bought. It is wise to use a fixed stop loss when working with oscillators to avoid bigger losses if a breakout should happen.

  • Timeframes: All, preferably from 1H.
  • Type: no trend (flat)

Technical formations and japanese candles


History tends to repeat so are the visual formations on the charts as well as price-bar combinations. Listing all the possible combinations is not a purpose of this topic, we just give an idea where one could start. There are many visual formations that can be used: "triangles", "flags", "head and shoulders" etc as well as countless price-bar combinations consisting of one or several candles.

  • Timeframes: All, preferably from 1H.
  • Type: both directional and flat

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