Trading Strategies
Trading Strategies Guide: Day & Swing Trading
Overview of Popular Trading Strategies
Different strategies work in different market conditions. Here is a review of common approaches used by retail and institutional traders:
1. Trend Following
Identifying strong directional trends and entering trades in the direction of the momentum using moving averages or trendlines.
2. Support & Resistance (Range Trading)
Buying at support levels (where buyers historically step in) and selling at resistance levels (where sellers historically block prices).
3. Breakout Trading
Entering trades when prices break out of established ranges or key levels with increased volume, anticipating a continuation move.
4. Mean Reversion
Trading based on the assumption that extreme price moves will eventually pull back to historical averages or fair value.