News Trading

Some traders prefer to trade during major data releases, where volatility appears and sharp moves can be places. For instance a positive Non Farm Payroll release in the US will expose USD and EURUSD. This means they’ll most likely take a downward trend, and visa versa. This method is applicable for traders who aren’t spending a significant amount of time on their trades.  

FOLLOW THE TREND + UP TRENDS

This strategy advises traders to follow the trends in the market direction. Traders should see the trend clearly before they enter a new trade and also use the necessary tools to analyse the trend. For example moving averages or trending lines.  

Up Trends: The chart below shows that even pullbacks appear and price can move downward. Even if the major direction is upwards. If the price cannot break the support, then it bounces from the support line.

Down Trends: This chart shows a pullback appearing, which meant that price has moved upwards when the major direction should be downwards. When the price cannot break in this instance it will bounce from the resistance line.  

INTRADAY TRADING

Some traders may choose not to keep their trades open overnight, closing them in the morning. Instead the trader will trade during the day, which means they can monitor their trades more successfully. They can go both long and short, during a long term daytime trend.

OVERNIGHT TRADING

This strategy helps traders who aren’t able to watch their trades during the day. Here the trader must predict the next day's prices based on the previous day's performance. In this instance, pending orders are preferred.  

SWING TRADING

Traders that use the swing strategy are always in position. They go short at the top and long at the bottom, in an attempt to capture each extreme price action. Rather than following the trend the swing trader hold positions against the trade. They’re not typically interested in the fundamental analysis.  

SCALPING

The scalping strategy targets minor changes in price in a short time frame. This builds profits through frequent entries and exits. Traders that use scalping will mostly ignore economic events, benefits and big data releases