Some people hold their trades for short periods, even as little as a day, while others hold theirs for quite a long time. While the former is known as short-term traders, the latter are called long-term traders. But what does a long-term trading strategy mean? A long-term trading strategy refers to a style of trading…
Making wise investment decisions in today’s erratic financial market may depend on your ability to recognize the signals of a potential market reversal. The phrase “Reversal Day” refers to a day when a stock or market index changes direction, either upward or downward. What is the Reversal Day strategy? This article will discuss the idea…
The Ichimoku trading strategy uses a technical analysis indicator that defines support and resistance levels, shows the trend direction, and gauges the momentum of the trend. It does this by plotting multiple averages on the price chart, which forms a ‘cloud’ that indicates where the price may find support or resistance in the future. Technical…
Every investment comes with the risk of loss, but it is possible to limit such risks using hedging strategies. Hedging trading strategies are valuable tools that every investor should be aware of, but what exactly are hedging trading strategies? In the stock market, hedging trading strategies are a way to protect your stock portfolio. It…
This article compares price action trading with indicator-based trading, exploring the differences between the two approaches. It highlights the importance of understanding price movements and using technical indicators effectively. By analyzing the pros and cons of each approach, traders can make informed decisions and determine which strategy suits their trading style best. What is price…
A trading strategy is the ultimate playbook for traders, guiding their every move as they buy and sell assets. It’s like having a personal mentor by your side, providing a systematic approach to making informed decisions. But contrary to what you may have heard, creating your trading strategy doesn’t have to be intimidating. Whether you’re…
Mean reversion strategies come with their own set of advantages and disadvantages relative to trend-following strategies. However, just as when implementing a trend-following strategy, knowing the statistical behavior of your asset is of vital importance when it comes to mean reversion strategies. There are indicators and statistical tools to evaluate the mean reversion properties of…
Silver futures are the most actively traded precious metal futures contract after gold. Silver has been used as currency and jewelry for ages due to its beauty and versatility. Today, due to its high conductivity and other properties, silver is also used in batteries, dentistry, glass coatings, LED chips, medicine, nuclear reactors, photography, photovoltaic (solar)…
A pullback trading strategy is a trading strategy that involves buying a stock after it has experienced a recent decline in price. The rationale behind this strategy is that the stock is likely to rebound from its recent decline and return to its previous price level or even higher. Pullback Trading Strategy. We have previously…
An essential part of technical analysis is studying the chart patterns, and one common chart formation is the 123-reversal setup, which appears at the beginning of many price reversals. But what is the 123 pattern reversal strategy? The 123 reversal chart pattern strategy is a three-swing price formation that indicates a potential reversal in trend….
