Trading Off the Daily Chart Strategy

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Step Back From The Crowd & Trade Weekly Patterns

You do not need to be glued to your trading screen to take advantage of the strategies used by top market players to profit from stocks, futures and forex. Start with a giant step back, setting your focus on weekly patterns that carve out more reliable highs and lows than daily or intraday price action does. Then, build management rules that allow you to sleep at night, while the fast fingered crowd tosses and turns, fixated on the next opening bell.

Algorithms, also known as high-frequency trading (HFT) robots, have added considerable danger to intraday sessions in recent years, jamming prices higher and lower to ferret out volume clusters, stop losses and inflection points where human traders will make poor decisions. Focusing on weekly charts avoids this predatory behavior by aligning entry, exit and stop losses with the edges of longer-term uptrends, downtrends, support and resistance (for related reading, see: Multiple Time Frames Can Multiply Returns).

This big picture approach lowers noise levels considerably (for related reading, see: Trading Without Noise), allowing the weekly trader to see opportunities that are missed by short-term players flipping through their daily charts at night. Admittedly, these trade setups require patience and self discipline because it can take several months for weekly price bars to reach actionable trigger points. However, higher reward potential makes up for this lower activity level, while total work effort allows the trader to have a real life away from the financial markets.

Weekly charts utilize specific risk management rules to avoid getting caught in big losses:

  1. Lower position size and avoid the overuse of margin. A few hundred shares will do the work of a thousand or more when you let prices travel many points before taking your profit or loss.
  2. Be selective in position choice. As a general rule, highly capitalized equities and the most popular exchange-traded funds (ETF) generate better weekly trades than small cap darlings or high flying biotechs that can drop 30% to 50% after an adverse FDA decision.
  3. Focus on the edges of long-term ranges and moving averages. Opening a weekly trade in the middle of a 15- or 20-point sideways pattern is a sure-fire way to lose money, while buying a pullback to the 50-week EMA can produce outstanding results.
  4. Respect the power of opportunity cost. The capital you set aside for a weekly trade that lasts several months cannot be used for a higher reward setup that magically appears while you are managing the other position.

Feel free to add fundamental techniques to your weekly technical trade criteria. For example, solid earnings growth will increase your confidence when buying a stock that is nearing a weekly support level after a sell-off. Moreover, dollar cost averaging can be utilized aggressively, adding to positions as they approach and test these action levels. But do not get blinded by the company’s balance sheet if support breaks because you will need to take your loss aggressively.

Let’s look at four weekly trade setups carved out by Powershares QQQ Trust (Nasdaq: QQQ) over a 14-month period in 2020 and 2020.

The fund entered a weekly trading range, with support near 85 in November 2020. It rallied above 90 at the start of 2020 and sold off, returning to long-term range support in April. Weekly traders could build low-risk positions at that level (1), ahead of a 7-week bounce that added more than 7 points. In addition, a second buy signal erupted when it rallied above January resistance (2), favoring a new entry or continuation of the first position, which is now held at a substantial profit.

The steep October slide set up a third weekly trade entry when it descended to support above 91 (3), created by the June breakout. That level also aligned perfectly with support at the 50-week moving average, significantly raising odds for a bullish outcome. The fund went vertical off that support zone, testing the yearly high and breaking out into year’s end. A final buy signal goes off when it breaks out into triple digits in November (4).

April and October pullbacks into weekly support (red circles) raise an important issue in the execution of weekly trades. Both declines violated support mid-week and bounced, closing Friday’s session above those contested levels. While positions should be taken as close to weekly support as possible, stops and other unprofitable exits need to avoid intraday volatility, which means one should defer exit decisions (for related reading, see: Trade On Support For The Best Exit Strategy) until the weekend or until support is breached by several percentage points.

The7 forex strategy for daily charts

Before you is easy to understand and use, but quite powerful trading strategyproposed to work on The7 daily chart. Only two indicators are used for work: a price chart and moving average.

Forex trading strategy setup

Timeframe: Daily
Forex pairs: various
Trading time: once a day at the opening of the candle
Indicators: EMA (5), built on High, and EMA (5), built on Low.

The7 Trading Strategy Rules

The main reason for working on this trading strategy is to obtain the highest possible profitable position, which would exceed a few minus ones. Therefore, it is recommended to use several currency pairs for work at once: as much as the deposit allows you. At the same time, ForTrader.org magazine recalls that it is important to use Money Management correctly: up to 3% per transaction.

So, since we use the daily chart for trading, the work happens only once a day – at the opening of a new bar. This approach greatly simplifies the life of those traders for whom the market is a hobby.

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To work, we set two EMA indicators (5) on the chart: one of them is built on High candles, the second – on Low. We get the trading channel.

Purchase transaction occurs when the bullish candle opens outside the channel and closes inside it. With the opening of a new bar, set a Buy order.

Similar to sales: a bearish candle should open outside the channel, and close inside it, breaking through the upper border from top to bottom.

The7 Trading Strategy Rules

Stop loss set to High or Low of the signal candle, adding to it the value spread.

Profit is taken when conditions for the opposite transaction appear. It will not be superfluous to use the Tralling stop when the next candle leaves the channel.

Recommended Also, do not open a trading position if the signal candle pierced both borders of the channel at once. this may mean that the movement has already overcome its peak. In addition, it is worth paying attention to strong levels of support and resistance, as well as the general trend movement at the current moment: give a trade to take more profit, be careful with the price reversal on the proposed correction.

It is also important to understand that a strategy can bring several small losses in a row, especially in times of protracted flatHowever, they should be leveled by good profit on the trend. Those traders who want to modify the system can try to use their favorite trend indicator or oscillator as an additional filter.

Ivan Borisov

A person who knows everything about forex trading strategies! Since 2008, he has been offering us various options and opportunities for trading on the Forex currency market: authoring techniques and popular strategies from the Internet.

Fibonacci Daily Chart Forex Strategy

Introduction

Sometimes, I get asked if there is no way to take a long term trade; enabling a trader to trade a few times in a month with the potential to make great returns? Well, this is the strategy to do the job, especially as many currencies are trending powerfully at this time of the year going into Q2 2020.

The goal of this strategy therefore is to:

  1. Identify these re-entry points.
  2. Identify a suitable exit area once the re-entry trade is in progress.

Indicators

Three indicators are used in executing this strategy:

  1. Fibonacci Retracement tool (for trade entry)
  2. Fibonacci Extension tool (for trade exit)
  3. Stochastics oscillator, which is set to values of 10,3,3 in the “parameters” field.

The Strategy

The strategy is exclusive to the daily chart. Using the Fibonaccci indicators, the strategy is designed to show traders how to re-enter into a long term trend when some degree of a retracement has occurred. In other words, this is a good trade to help the trader “buy on a dip” or “sell on a rally”. This is a strategy which has a complete solution for entry and exit. All trades are picked out from the daily chart.

The key points are to pick out entry points from the Fibonacci retracement levels as well as the trade end zone from the Fibonacci extension tool. A daily chart is pulled up, and the trend of the currency pair is identified. If the trend is upwards, the Fibonacci retracement tool is plotted from the lowest point on the chart (swing low) to the highest point on the chart (swing high). If the trend is downwards, the sequence is reversed; swing high to swing low. Once this is done, the Fibonacci retracement levels are shown on the chart.

Next, the Stochastics oscillator which has been set to 10,3,3 in the “parameters” tab, is applied to the chart. The Stochastics oscillator has two lines which cross themselves from time to time. When these lines cross at a value of 20 or less, then the market is oversold and ripe for an upside move. When the lines cross at 80 or more, the market is overbought and a downside move is evident.

Why do we use the Stochastics oscillator? The Fibonacci retracement tool displays 5 levels of possible retracement. The question is: at which of these levels will price action resume in the direction of the previous trend after retracement? The oversold and overbought Stochastics levels will answer this question in the trade setups shown below.

To complete the trade, the Fibonacci extension tool is plotted as the retracement tool, with the difference being that the tool is extended to the exact retracement point. This shows the extension levels, which are actually the areas at which the price movement is expected to end.

1) Long Trade

Trace the Fibonacci retracement tool from the swing low to swing high on a daily chart. Plot the Stochastics oscillator. Look for where the price settles at a Fibonacci retracement level where the Stochastics oscillator is at oversold levels. Open the long trade at the open of the new candle.

Long Trade setup

2) Short Trade

The short trade starts by tracing the Fibonacci retracement tool from the swing high to the swing low on the daily chart. The Stochastics indicator is applied to the chart, and we then look for where retracement price action falls on a Fibonacci retracement level when the Stochastics indicator is overbought (>80). Once this is identified, then the next step is to go short at the open of the next candle as displayed in the snapshot.

Short Trade setup

It is important to understand that because this is a daily chart, it will take 24 hours for a candle to form. So only enter at the open of the next day’s candle.

Stop Loss

Usually the stop loss can be placed just below the Fibonacci retracement level which marks the entry point for the long trade, or above the Fibo level which marks the trade entry for the short trade.

Take Profit

The Take Profit point is solely defined by the Fibonacci extension tool. The commonest extension levels seen on the chart are at the 61.8% or 100% Fibonacci extension levels. So the 61.8% level can be set as a first target. If price exceeds this point, then the trailing stop can be used to follow the price action to the 2 nd target, which is usually at the 100% level. In extraordinary cases, the 161.8% Fibo extension level may also come to play when price movements are very aggressive.

Using the Fibo Extension Tool for Taking Profit

We also show the setup for the short trade example we gave earlier. In this case, the 100% Fibo extension level was where the price action eventually got to. So the approach here would be to use a trailing stop once the price action has broken the 61.8% extension level, and chase the falling price action all the way to the 100% Fibo extension level.

Conclusion

Many governments are still running their market stimulus programs, so there are many opportunities to trade with this strategy, especially on the US Dollar pairs and the Yen crosses. The strategy must be practiced on a demo platform before being applied to a live account.

What is The Best Trading Strategy To Earn A Living (Updated 2020)

Answer: The best strategy is the one that fits your circumstances and personality best.

We get this question often because we are the website that everyone goes to for trading strategies. I wish I could give you a straightforward answer to this question. However, I think you know as well as I do that this is a complicated question. To find the solution entirely, we are going to have to give you a complete, in-depth answer.

The answer is the one that fits your style and circumstances. We are going to do that by asking and answering many questions. By the time we are done with this, you will know what strategy is best for you.

I could easily say that the best strategy is a price action strategy, and that may be true for me. But it would not be right for you. This is because you might not be able to trade as many hours or at the same times as me. That is why to find the best trading strategies, they must be custom built for each person.

Today by the end of this article you will know the best trading strategies for you.

Whether you need to develop a Stock Trading Strategies PDF that you can look at any time. Or a complete list of strategies that work. We will help you know precisely what you need to trade well.

I recommend that you bookmark this article right now because you will need to come back here often. You will be using this to assist you to build the strategy that is custom for you. We are going to have many trading strategy examples that you can use as a template to help build. You’ll complete a basket of useful strategies that you will be able to reference in the future. Here is another strategy called best Gann Fan Trading Strategy.

Question: What is the best trading strategy for Intraday?

Answer: Intraday trading will take a great deal of your time. This is because you will be focusing on the charts all day that you will be trading. This type of trading requires a great deal of focus. Make sure the focus is one of your strengths. If you cannot focus, intraday trading will be extremely difficult for you to master.

Here is a list of strategies that we have compiled that work well for intraday trading:

Question: What Are the Best Forex Trading Strategies?

The Forex Market has a high level of price movement which means that there can be fakeouts. This can move you out of your position. We recommend that you find strategies that will allow you to put a stop loss in a place. That will keep your trading from being stopped out quickly.

Here are three strategies we recommend if you start trading forex:

Question: What are the Best Strategies for Beginners?

Answer: When searching for beginner strategies it is essential to know how long you will be holding your position. If you are going to keep your trades for less and one day that means you are a day trader. And you should find a day trading strategies pdf that you can use as a guide to follow during each trading session.

Here are three strategies we recommend for beginning traders.

Question: What is the best trading strategy for Cryptocurrency?

Answer: CryptoCurrency is a challenge. This is because of the massive price swings that can take a trader out of his trade quickly. Here is a strategy we recommend for trading bitcoin. The scorching market means that everyone will be jumping into it. This is why it is essential to get an excellent plan so you will have an edge over everyone else.

Question: What are the best trading strategy books?

Answer: There are many books that traders should read if they want to become skilled in the craft of trading:.

Here are three books that we recommend if you are looking for trading books.

Question: What is the Best Trading Strategy in the Stock Market?

Answer: Here at Trading Strategy Guides we develop and teach strategies for every market. And we have a list that we recommend if you are trying to learn how to trade in the stock market. The Stock Market is one of the most popular markets for learning how to trade.

Here is the list of the best Stock Market Strategies:

Question: What is the best trading strategy for crude oil?

Crude Oil is a futures market. There are some things that you need to be aware of to trade it correctly. And we have some key setups to show you, including the best strategy pdf and best forex trading strategy pdf. It can also be essential to check the news for such events as the oil supply and demand release each week. We also have training for winning news trading strategy.

Here is what we recommend for trading crude oil.

Question: What is the best strategy for trading commodities?

Answer: We have developed several strategies that help traders to trade commodities. Here are two of the ones we recommend for trading commodities.

Question: What is the best trading strategy for small accounts?

Answer: This is one of our favorite questions here at trading strategy guides. We believe that traders should start small and grow accounts as their skill improves. There is a myth that states, to become successful you must start with a large sum of money in your account. That is merely not true. We have targeted strategies that help you if you only have a pittance to trade.

We have created the perfect strategy for growing your small account.

Here are two that we recommend:

Question: What is the best strategy for scalping the markets?

To scalp the markets, you need to have a short-term trading strategy along with an intraday trading mindset, and we have just the approach to help you with that.

Here are Three scalping strategies that we recommend.

Question: What are the best technical indicator strategies?

Here are three of the best indicator strategies to improve your chart reading skills:

Question: What trading strategy is the best for youtube?

Answer: We have posted many strategies on youtube and will continue to post more for you to learn from on a weekly basis. We have even published what some have said is the best forex trading strategy youtube video out there. The Video component of the learning takes learning to another level. That is why it is crucial to attempt to use visual, audible and execution learning methods so that you genuinely understand more deeply.

Question: What is the best trading strategy on TradingView?

We have developed many strategies, and they all work well with TradingView. However, there are two that we recommend that if you are going to be using the trading view as your trading platform, then you must try these two strategies out.

Question: What is the best options strategy?

Answer: Trading Options is an excellent way for traders to execute trades in the stock market. We have two unique strategies for options we recommend. This style of trading uses a simple set of rules based on technical and fundamental analysis.

Question: What is the best trading strategy exit?

Answer: When trading most traders think only about the trading strategy entry and entirely forget about the exit. The truth is that closing your trade is one of the most critical parts of your trading strategy. This is because if you can’t exit the trade with the profit, you won’t be a winning trader. Make sure you develop a plan that will help you get out of trades quickly and do not just focus on how to get into the trades.

Question: What is the Best Automated Trading Strategy?

Answer: Using Automated trading strategies for profit is extremely challenging because there are so many wild claims on the internet about making millions of dollars. Do your homework do not invest in something unless you understand how it works. Then I recommend starting very small with your investment and slowly increasing the amount you spend as you begin to learn how efficient the automated system is.

Question: What are the best blogs for trading strategies on the web?

Answer: The best trading strategy blog is the Trading Strategy Guides Blog. This is because they have a commitment to quality and excellence in their articles and posts. They use simple step by step instructions that make even the most demanding strategies easy to trade. The reports include the highest quality images. They also have videos about each plan to make the learning that much better. Finally, they put out an infographic for each strategy to indeed make the learning experience complete.

But don’t let us tell you this. See what that trading community has to say about the best trading strategy blogs on the internet.

Part Two: How to Determine What is The Best Trading Strategy For You.

Each trader needs to have a trading routine to find the perfect trading strategy that works for them. If you as a trader take your time on the front end to plan things out and ask yourself the right questions, then you will be able to get a head start and be ahead of 90% of the other traders. Developing a process that you use every day, will assist you in finding the exact plan that will be needed for you.

Some of the things you need to know are:

How much time per day do you want to dedicate to trading?

This answer will vary based on your circumstances. If you work a 9-5 job, then you will not be able to dedicate as much time to trading than someone who doesn’t work a full-time job.

If you are in that category, you will have to find the best long-term trading strategy that you can and then trade that in the mornings before work or in the evenings after work.

One of the great things about trading is that your strategy can be adjusted to fit your circumstances. No Wall Street day job needed.

Another thing you should be asking yourself is how patient you are. Because if you are not a patient trader, then you will not be able to wait for days and hours for entries. In that case, it might be necessary for you to find the best short-term trading strategy because you will not have to be nearly as the patient when trading in the lower time frames.

When determining your trading strategy, you will also have to consider how much money you will have to start with. The amount of money in your trading account can make a big difference as to what type of strategy would be best for you. If you start out with a small balance of fewer than 1,000 dollars, then you would be wise to find the best Mt4 trading strategy. This is because Mt4 is a platform that forex traders rely on. They do not need a large sum of money to start trading. It would also be wise to consider finding a suitable method for keeping your stop losses small. Larger stops can mean more significant declines.

Bottom Line Best Strategy Tips for success:

Yes, you can earn a living buying and selling using online trading platforms. The most important thing to remember is that you need to find a strategy that fits your specific trading style. The way to get the most accurate entries is to try to find the trend by looking at the various highs and lows. This should be able to help you to learn day trading and help things easy by always taking the most simple trade.

Remember always have a profit target when you are taking your trade that will help you with your risk to reward ratio and find the best trade exits.

Trading for a living is not easy, but if you have a fixed income, it can be an excellent additional source of revenue.

Strategies that use specific trade entries and use a reliable risk management methods will help you on your way to having an excellent personal finance plan. The level of risk that you will be using should be comfortable for you, and we recommend contacting a financial advisor to help you with your situation.

We recommend that you test your trading system before putting real money into the markets and that you always use a trading system that uses many resistance levels so that you know how the market will react in as many situations as possible.

Overall Swing traders (also known as position trading) have the most success when first starting out to find the best trading strategy to make a living.

It is also possible to use exchange traded funds or ETFs for any of these strategies. The use of these funds relies heavily on the earnings calendar and the economic calendar. So make sure that you are always following the market news, so you don’t get burned.

There are many types of strategies that can be used to achieve financial freedom. One of those we didn’t discuss in this article was the fundamental analysis trading strategy. We will discuss that method of trading during a later section.

In summary, it is essential to use the right technical indicators to utilize each additional strategy whether it is range trading or momentum trading.

If you have any additional queries on finding the best trading strategy, then please leave a question in the comment section, and we will be glad to help you find what you need to help you become a successful trader.

Thank you for reading!

Please leave a comment below if you have any questions.

Also, please give this strategy a 5 star if you enjoyed it!

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