Latest revision as of 12:11, 21 November 2023

Technical Trading Strategies typically form the initial basis for trading decisions by retail traders when they enter the Forex market for the first time. Understanding Technical Trading Strategies is a good place to learn how to enter and exit trades. In this WIki, we will explore many different Technical Trading Strategies and how you might go about employing them within The Basic Cycle of all markets.

NOTE: No one technical strategy is going to work all of the time in all the various market structures and environments. For example, Breakout strategies will tend to work in trending environments but get chopped up in uncertain or sideways markets. This means that understanding where you are in the context of The Basic Cycle and the overall trend will benefit you greatly when executing a technical strategy in live market situations.

NOTE: All technical strategies will benefit from understanding the big picture Fundamental Trend and the prevailing Sentiment that is driving market prices in the current trading session. A good idea is to use technical trading strategies as a "Timing tool" to find smart places to enter trades in the direction of the Sentiment that is currently driving prices.

WARNING: As with any trading strategy, you need to take the time to vigorously test each strategy in a simulated market situation before putting any of your money to work in the markets. Not doing the necessary backtesting may result in financial losses. All strategies in this Wiki or on Volatility.red are for information purposes only and are not in any way intended as financial advice.

This Wiki is a part of our Essential Forex Trading Guide. Be sure to check that out HERE.

Basic Technical Trading Strategies

Many retail traders gravitate towards Technical Trading Strategies because they are visually simple to understand and execute in live market situations. In this Wiki, we are going to take a look at some very basic technical trading strategies that you can experiment with and see if any of them are a good fit for your trading plan such as:

You can access the main Wiki on Basic Technical Trading Strategies HERE.

Every Market has a Strategy

Every Market has a Strategy! What we will do in this Wiki is break down when the best time to trade the Basic Technical Trading Strategies found in the Basic Technical Trading Strategies Wiki are and how you can apply these timing concepts to your trading including:

[Every_Market_has_a_Strategy#When_to_Trade_Technical_Strategies | [When to Trade Technical Strategies]]
Trading Strategies and the Stages of the Basic Cycle
Strategies and the Basic Cycle

You can access the main Wiki for Every Market has a Strategy HERE.

Intermediate Technical Trading Strategies

Building on the Basic Technical Trading Strategies Wiki, in the following Wiki we will take a look at a few more Intermediate Technical Trading Strategies including:

You can access the main Wiki for Intermediate Technical Trading Strategies HERE.

Chart Patterns

Utilizing Chart Patterns is a very old and time-tested practice in virtually all financial markets. We are not going to reinvent the wheel in this Wiki but we will introduce you to some of the most common forms of Chart Patterns that have stood the test of time and are worth you taking the time to learn and understand.

In the following Wiki on Chart Patterns we will explore:

You can access the main Wiki for Chart Patterns HERE.

Related Wikis

Readers of Technical Trading Strategies also viewed:

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-Content in progress.....
+[[Technical Trading Strategies]] typically form the initial basis for [[Pre-Trade_Considerations | trading decisions]] by [[Institutional_and_Retail_Traders#What_is_a_Retail_Trader? | retail traders]] when they enter the [[Forex]] market for the first [[Forex Market Hours | time]]. Understanding [[Technical Trading Strategies]] is a good place to learn how to [[Developing_your_Trading_Process | enter and exit trades]]. In this WIki, we will explore many different [[Technical Trading Strategies]] and how you might go about employing them within [[The Basic Cycle]] of all markets.
+'''NOTE:''' No one [[Technical Analysis | technical]] strategy is going to work all of the time in all the various [[Price_Action_Analysis | market structures]] and environments. For example, [[Breakouts_and_Breakdowns | Breakout strategies]] will tend to work in [[Trends | trending]] environments but get chopped up in uncertain or [[Breakouts_and_Breakdowns#The_Sideways_Time_Correction | sideways markets]]. This means that understanding where you are in the context of [[The Basic Cycle]] and the overall [[Trends | trend]] will benefit you greatly when executing a [[Technical Analysis | technical]] strategy in live market situations.
+'''NOTE:''' All technical strategies will benefit from understanding the big picture [[Fundamental_Analysis | Fundamental Trend]] and the [[Sentiment_Analysis | prevailing Sentiment]] that is driving [[Price_Action_Analysis | market prices]] in the current [[Forex_Trading_Sessions | trading session]]. A good idea is to use technical trading strategies as a ''"Timing tool"'' to find smart places to [[Pre-Trade Considerations | enter trades]] in the direction of the [[Sentiment_Analysis | Sentiment]] that is currently driving [[Price_Action_Analysis | prices]].
+'''WARNING:''' As with any trading strategy, you need to take the [[Forex Market Hours | time]] to vigorously test each strategy in a simulated market situation before putting any of your money to work in the markets. Not doing the necessary [[Tick Data for Backtesting and Algo Trading | backtesting]] may result in financial losses. All strategies in this Wiki or on Volatility.red are for information purposes only and are not in any way intended as financial advice.
+This Wiki is a part of our [[Essential Forex Trading Guide]]. Be sure to check that out [[Essential_Forex_Trading_Guide | HERE]].
@@ Line 5: / Line 14: @@
-='''Technical Trading Strategies'''=
+='''[[Basic Technical Trading Strategies]]'''=
+Many retail traders gravitate towards [[Technical Trading Strategies]] because they are visually simple to understand and execute in live market situations. In this Wiki, we are going to take a look at some very basic technical trading strategies that you can experiment with and see if any of them are a good fit for your trading plan such as:
+* [[Basic_Technical_Trading_Strategies#The_3-5_Candle_Drop_and_Pop | The 3-5 Candle Drop and Pop]]
+* [[Basic_Technical_Trading_Strategies#The_Breakout_and_Breakdown | The Breakout and Breakdown]]
+* [[Basic_Technical_Trading_Strategies#Bullish_and_Bearish_Momentum_Stall | Bullish and Bearish Momentum Stall]]
+* [[Basic_Technical_Trading_Strategies#Matched_Move_Higher_and_Lower | Matched Move Higher and Lower]]
+* [[Basic_Technical_Trading_Strategies#Climactic_Buy_and_Sell | Climactic Buy and Sell]]
+* [[Basic_Technical_Trading_Strategies#The_3-5_Candle_Drop_and_Pop_Moving_Average_Plays | The 3-5 Candle Drop and Pop Moving Average Plays]]
+* [[Basic_Technical_Trading_Strategies#Moving_Average_Buy_and_Sell_Zones | Moving Average Buy and Sell Zones]]
+* [[Basic_Technical_Trading_Strategies#Major_Support_Buy_and_Major_Resistance_Sell_Zones | Major Support Buy and Major Resistance Sell Zones]]
+You can access the main Wiki on [[Basic Technical Trading Strategies]] [[Basic Technical Trading Strategies | HERE.]]
+='''[[Every Market has a Strategy]]'''=
-=='''The Trend Trade'''==
+Every Market has a Strategy! What we will do in this Wiki is break down when the best time to trade the [[Basic Technical Trading Strategies]] found in the [[Basic Technical Trading Strategies]] Wiki are and how you can apply these timing concepts to your trading including:
-This strategy works best when combined with [[Fundamental and Sentiment Trading Strategies]].
+* [Every_Market_has_a_Strategy#When_to_Trade_Technical_Strategies | [When to Trade Technical Strategies]]
+* [[Every_Market_has_a_Strategy#Trading_Strategies_and_the_Stages_of_the_Basic_Cycle | Trading Strategies and the Stages of the Basic Cycle]]
+* [[Every_Market_has_a_Strategy#Strategies_and_the_Basic_Cycle | Strategies and the Basic Cycle]]
-The trend trade attempts to capture a trade in the direction of the overall market trend.  This is a trade that should be in line with the current sentiment driving the particular currency and tends to be a day trade because it uses pivots and pivots change every trading day.
-Trade Setup:
+You can access the main Wiki for [[Every Market has a Strategy]] [[Every Market has a Strategy | HERE]].
-* In an uptrend wait for the market to pull back.
-* Apply the Fibonacci retracement tool from the extreme low to the extreme high.
-* Apply trader pivot points.
-What we are looking for is a confluence of one of the Fibonacci retracement levels to match with one of the pivot points in the buying zone.
+='''[[Intermediate Technical Trading Strategies]]'''=
-There should be less than 10 pips between the Fib level and the pivot point.  The fewer amounts of pips between the 2 levels the better the setup.
+Building on the [[Basic Technical Trading Strategies]] Wiki, in the following Wiki we will take a look at a few more [[Intermediate Technical Trading Strategies]] including:
-The pros are that you can use a small stop loss and have good pinpoint accuracy with the entry.  The cons are that price may not pullback for you to get a trigger.  Sometimes a confluence will be hard to find.
+* [[Intermediate_Technical_Trading_Strategies#The_Trend_Trade | The Trend Trade]]
+* [[Intermediate_Technical_Trading_Strategies#The_Profile_Trade | The Profile Trade]]
+* [[Intermediate_Technical_Trading_Strategies#5_Minute_Candlestick_Trade | 5 Minute Candlestick Trade]]
-The same trade management would apply to this trade as pretty much all other trades.  We would look to target just before the prior extreme high and place the stop in an area that the market should not hit if you are correct in your analysis.
-The trade works in the exact same manner in reverse for a short trade.
+You can access the main Wiki for [[Intermediate Technical Trading Strategies]] [[Intermediate Technical Trading Strategies | HERE]].
-=='''The Profile Trade'''==
+='''[[Chart Patterns]]'''=
-This strategy works best when combined with [[Fundamental and Sentiment Trading Strategies]].
+Utilizing [[Chart Patterns]] is a very old and time-tested practice in virtually all financial markets. We are not going to reinvent the wheel in this Wiki but we will introduce you to some of the most common forms of [[Chart Patterns]] that have stood the test of [[Forex Market Hours | time]] and are worth you taking the [[Forex Market Hours | time]] to learn and understand.
-The profile trade strategy involves buying or shorting the break of the most recent fractal.  We talked earlier about how you can take advantage of the market profile changing as a way to get you back into the fundamental trend after it has had a period of price action going against the overall big picture.
+In the following Wiki on [[Chart Patterns]] we will explore:
-Trade Setup:
+* [[Chart_Patterns#The_2_Pattern_Categories | The 2 Pattern Categories]]
+* [[Chart_Patterns#Rectangles | Rectangles]]
+* [[Chart_Patterns#Flags | Flags]]
+* [[Chart_Patterns#Triangles | Triangles]]
+* [[Chart_Patterns#Double_Tops | Double Tops]] and [[Chart_Patterns#Double_Bottoms | Double Bottoms]]
+* [[Chart_Patterns#Head_and_Shoulders | Head and Shoulders]]
+* And so much more...
-* Identify the most recent fractal swing high and wait for the price to break that high by one pip then enter a long position.  This applies to fundamentally strong pairs.
+You can access the main Wiki for [[Chart Patterns]] [[Chart_Patterns | HERE]].
-* Identify the most recent fractal swing low and wait for price to break that low by one pip then go short if the fundamentals are pointing down.
-* The stop loss placement goes on the other side of the opposite most recent fractal swing.
-One of the best way to use this strategy is with the overnight trades.  For example, if there was a strong news release and the London traders moved a currency up through the London session then look to get in on a break of a fractal swing high during the US session.  The break of the high during the US session gives us confirmation that the US traders are going to buy the pair up as well.
+=Related Wikis=
-This strategy is best on a 5 minute chart for intra-day trading but can be on any time frame.
+Readers of '''Technical Trading Strategies''' also viewed:
-The 4 hour time frame is a nice time frame to get an idea of how price is behaving in relation to the big picture.  Sometimes a break of the 4 hour fractal back in the direction of the fundamentals can signal to us that the market is done moving price in the opposite direction and ready to start trading the pair back in line with the big picture.
+* [[Pre-Trade Considerations]]
+* [[Forex Market Hours]]
+* [[Speculating]]
+* [[Having an Edge in your Trading]]
+* [[Essential Forex Trading Guide]]