- Top 5 Best Forex Day Trading Strategies That Work
- Day Trading Strategies For Beginners 2020: My Top 5
- 3Best Day Trading Strategies for 2020 • Benzinga
Stock markets gap quite often, so this is very popular. As you can see on the attached chart of Apple, the stock gapped lower on relatively strong volume at the beginning of the day.
Top 5 Best Forex Day Trading Strategies That Work
While there are an entire plethora of reversal trading strategies, by far the most simple is the three candle strategy. This one can also be used as swing trading strategy.
Day Trading Strategies For Beginners 2020: My Top 5
My personal favorite is the gap and go strategy. This is such a fantastic day trading strategy that I have crafted a sperate article for the gap and go strategy.
3Best Day Trading Strategies for 2020 • Benzinga
Our second strategy involves the usage of two trading indicators, the Relative Strength Index and the Stochastic Oscillator. These two indicators are mostly used to get signals for overbought and oversold market conditions. Thus, their main purpose will be to trade price reversals. This is a scalp day trading strategy suitable for all trading assets.
Breakout trading is a bit of an art form, but the one thing that you can't get around is the necessity to see support and resistance on a chart. There are free stock screener available to identify support and resistance levels on a longer time frame as well as some good paid stock screeners that do it in real time.
While following a trend line, of course, is very crucial, and when you look at this chart below, you can even see several times when you could have bought this market along the way, merely following the trend line, what is even more impressive is when you break a major trendline to the downside.
Few periods afterward, the price action creates a small bearish move. This tells us that the price might be finishing the increase and the overbought signal supports this theory. Therefore, we close the trade and collect our profit.
Even though we are at a disadvantage compared to institutional traders, the price chart is more than enough for us to observe what institutional traders are doing and capitalize on that information. One way to do this is to observe for breakouts coming from the previous sessions high and low price.
In this example, the pair had clearly been in and uptrend, and you can see by the annotations on the chart there were a couple of different entry points that could have got you in the move higher that we see on the chart.
However, I also have placed several purple dotted lines on the chart. What they represent are places where the market made a fresh, new high. Think of it this way: if you are in a nice trend and believe in a stock from a longer-term standpoint, there's no reason to take a profit.
While there are a multitude of swing trading strategies available out there to swing trade, there are some that tend to work out better over the longer-term. Obviously, this is going to be different for everyone involved as your psychology comes into play as well, and all of the strategies should be used with a proper money management scheme.
By sticking with two these types of strategies, it allows you to build up your portfolio and walk away from the computer. Far too many traders are stuck to their computer screens trying to make a living every day.
All of the mentioned strategies can be used as forex trading strategies as well as stock trading strategies. Swing trading strategies differ considerably from day trading strategies. However, some of the mentioned strategies can be used by day trading beginners as well.
The Rads MACD signals are simply based on the crossing over of the histogram bars over the midline. This serves as a confirmation and confluence to the signal produced by the Kijun Tenkan indicator.