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:
- The 3-5 Candle Drop and Pop
- The Breakout and Breakdown
- Bullish and Bearish Momentum Stall
- Matched Move Higher and Lower
- Climactic Buy and Sell
- The 3-5 Candle Drop and Pop Moving Average Plays
- Moving Average Buy and Sell Zones
- Major Support Buy and Major Resistance Sell Zones
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:
- The 2 Pattern Categories
- Rectangles
- Flags
- Triangles
- Double Tops and Double Bottoms
- Head and Shoulders
- And so much more...
You can access the main Wiki for Chart Patterns HERE.
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