Category: 2. Day Trading Strategies

The Rules Currency to be traded: GBP/JPY Chart timeframe: 5 minutes RSI setting: 14 Bollinger Bands setting: 20,2,SMA Step 1 We start viewing the 5 min GBP/JPY at exactly 00:00. We wait for the RSI indicator to either reach a reading of 70 or a reading of 30. The first reading that is reached will dictate if the…

The initial release of news about current events often directly and substantially influences the prices of stocks, commodities and currency pairs. Many financial markets traders who trade economic data releases wait until the market exhibits a consolidation pattern like a trading range just ahead of the anticipated release. This price behavior suggests that traders remain…

What Is a Breakout Trader? A breakout trader is a type of trader that uses a breakout strategy. This strategy looks for levels or areas that a security has been unable to move beyond, and waits for it to move beyond those levels (as it could keep moving in that direction). When a price moves…

What is a pullback and the psychology behind pullback? A pullback is a price movement that moves in against the trend. It is a temporary price movement before it resumes back into the main market direction. Pullbacks are sometimes referred to as price Correction or retracement. Pullback occurs when price moves at least one bar…

What Is Scalping Trading? About Day Trading  About Scalping Trading   How It Works  Indicators To Know  Primary vs. Supplementary  Advice  Takeaways  Every day, traders around the world buy and sell securities on stock market exchanges with the hopes of making a profit. These stock market exchanges see all types of traders, from long-term, focused investors who buy…

With a momentum strategy, an investor jumps on a stock whose price is moving up. Momentum stocks are rare and hard to find — only maybe about 10 out of 5,000 will fit the criteria in a given day, according to Warrior Trading. Look for these qualities in stocks if you’re using a momentum trading strategy: A…

Day trading is the act of buying and selling a financial instrument within the same day or even multiple times over the course of a day. Taking advantage of small price moves can be a lucrative game—if it is played correctly. But it can be a dangerous game for newbies or anyone who doesn’t adhere to a…

A day trader is a type of trader who executes a relatively large volume of short and long trades to capitalize on intraday market price action. The goal is to profit from very short-term price movements. Day traders can also use leverage to amplify returns, which can also amplify losses. While many strategies are employed by day traders, the price action…