A highly accurate intraday trading strategy
2024-03-30
The trading market can have a million different methods, and you can also have a variety of different strategies. This article aims to introduce a few reliable trading strategies. Of course, there are no guarantees in the market, it can only be said that some methods may be more reliable than others after continuous verification.
As a retail trader, we must remain flexible. The market changes rapidly, with many players, and we need to be alert to changes.
I. Round Number Strategy
The round number strategy is simple to talk about, but it is also magical. It refers to the fact that prices near round numbers are more likely to attract large order flows. Of course, this is not a rule that has been agreed upon, but a pattern that has formed over time.
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These round numbers also include small numbers, such as 1.10, 1.12, 0.98. If you are more patient, you can wait for large round numbers like 110.00, 115.00. The market tends to have a mutual response to every 500 points and support and resistance levels, so you can pay attention to whether there are trading opportunities near these prices.
Let's take a look at the 15-minute chart in Figure 1, where the price is close to the 1.3500 price, which is a very good opportunity to sell, and you can consider a 10-point stop loss and a 20-point profit target. Note that this is actually a 500-point round number. Then look at the 1.3300 price, and you will find that it is more suitable for a 10-point stop loss and a 10-point profit target, which is much worse than the opportunity at 1.3500. Therefore, paying attention to the trading opportunities that appear every 500 points can help improve trading performance.
II. Three Candlesticks ConnectedTranslate the following passage into English:
Three candlesticks connected in a row (Three in a row) is also a very simple strategy. All you need to do is wait for three candlesticks of the same type to be connected. For example, in the 5-minute chart of AUD/NZD below, I applied a 20-day moving average. In the area marked in pink, you can see three white candles connected, which means the market trend is accelerating. At this time, you can place the stop loss at the bottom of the third candle, and the profit target should be at least equal to the height of the three candles.
III. Hammerhead
You might not believe it, but I know some professional traders who only trade hammerheads or shooting stars, and they trade whenever they appear. If there are other important factors, the signal is even better. For example, if you see a hammerhead or shooting star at a 500 round number, their tradability is stronger. If the signal appears at a 100 round number, it may not be as important as 500, but it can still be traded, although the position can be smaller.
IV. Trading systems vary from person to person
There are about 100,000 systems, many of which are profitable. Some classic systems still exist after decades, and there is a reason for that. However, you can see some traders using the same settings to get completely different results.
Why? Because it is easy to execute a system, but to adhere to it is a completely different issue. In other words, the most important part of a system is the trader. Once you understand how to read the charts, you will find that the rest is almost entirely psychology.Traders encounter problems when they suffer losses and even when they persist in trading (these are the two most common issues). You need to understand that, assuming your system has a profitable advantage, over time, the system should lead you to make money. However, most traders will let some losses cause psychological trauma to them, leading to many mistakes. You must be able to let this system run for the long term.
Of course, this is assuming that there is a statistical advantage over time, such as in a large number of trading samples, where there are more gains than losses. However, as a trader, can you withstand the ups and downs? Most people can't.
V. You Need to Understand This Before Trading
It is important to note that highly profitable trading opportunities do not necessarily mean you will make a profit. It is understandable that traders want to make a profit from every trade, but the market changes and risks are high, and it is impossible to achieve such an ideal result. When we trade, we should pay more attention to the risk-reward ratio to ensure that your final result is positive.
Conclusion
In addition to his regular analyst work, Christopher Lewis is also a straightforward and temperamental trader. This can also be seen in his daily analysis articles. Lewis never uses any ambiguous words in his daily market analysis, nor does he pile up any so-called high-end professional terms, striving to explain his judgment of the market in the most concise way.
He said that making money from trading is not impossible. However, this requires a lot of work and patience, which unfortunately is not what many people want to hear. If you are cautious and willing to work hard, you may be different from most people and become a profitable trader.
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