In trading, despite the countless different strategies and setups that are used by traders all over the world, all these strategies can actually be traced back to these 4 core types: Break (trading breakouts) Swing (trend-following) Bounce (counter-trend, mean reversion) Turn (market reversals) Each strategy type has its pros and cons, so in the future, […]
There are 3 main styles of trading, and by styles, I mean the way you approach trading, and this in turn will determine your holding period, timeframe, time commitment, and the products you trade. Here are the 3 main styles: Short-term Medium-term Long-term Short-term Trading Short-term trading is mainly for people who are doing […]
In addition to the mainstream methods used by professionals, you might also come across online some exotic and unorthodox methods: Fibonacci analysis Elliot wave theory Gann theory Harmonic patterns Dow theory Ichimoku Kinko Hyo (Cloud charting) Volume Spread Analysis (VSA) Market profile Pitchfork analysis Point and Figure (P&F) Cycle analysis Many of these theories were […]
There are 3 main categories of technical analysis methods that are used by all traders: Classical charting Technical indicators Price action Since I will be doing separate guides for each of these methods, for now I will be briefly going through each one. 1. Classical Charting These were the very first tools developed […]
Now that we have learnt how to read price charts, the next step is for us to zoom in on the individual bars that make up the price charts. Since these charts are called candlestick charts, the individual bars are called candlestick bars. For convenience, most people will also refer to them simply as price […]
