Daily trade lesson :)
**Daily Lesson #3, 4 & 5**
**Trend-following**
A trend-following day trading strategy aims to catch trades in the direction of the underlying trend. When the trend is up, a trend-following strategy sends a "buy" signal and when the trend is down, the strategy yells "sell"
**Breakout trading**
Breakout strategies are based on breakouts of important technical levels and Chart Patterns. Markets tend to become quite volatile and move on a large momentum immediately after a breakout.
Common technical levels to trade breakouts include Support and Resistance levels, Trendlines, Channels, Rectangle and Triangle patterns, and Head and shoulder patterns, to name a few.
**Counter-trend trading**
Last but not least, counter-trend trading refers to taking trades in the opposite direction of the underlying trend. Counter-trend traders sell during uptrends and buy during downtrends. While this might sound counterintuitive at first, bear in mind that markets tend to move their mean over the short-term (mean-reverting), and this strategy aims to take advantage of this market phenomenon.
Counter-trend traders usually do so by selling at important resistance levels and buying at important support levels. Nevertheless, counter-trend trading is somewhat riskier than the other mentioned strategies and should be used only by more experienced traders.
$Sorrento Therapeutics Inc$ $AMC Entertainment(AMC.US$ $Micron Technology(MU.US$
**Trend-following**
A trend-following day trading strategy aims to catch trades in the direction of the underlying trend. When the trend is up, a trend-following strategy sends a "buy" signal and when the trend is down, the strategy yells "sell"
**Breakout trading**
Breakout strategies are based on breakouts of important technical levels and Chart Patterns. Markets tend to become quite volatile and move on a large momentum immediately after a breakout.
Common technical levels to trade breakouts include Support and Resistance levels, Trendlines, Channels, Rectangle and Triangle patterns, and Head and shoulder patterns, to name a few.
**Counter-trend trading**
Last but not least, counter-trend trading refers to taking trades in the opposite direction of the underlying trend. Counter-trend traders sell during uptrends and buy during downtrends. While this might sound counterintuitive at first, bear in mind that markets tend to move their mean over the short-term (mean-reverting), and this strategy aims to take advantage of this market phenomenon.
Counter-trend traders usually do so by selling at important resistance levels and buying at important support levels. Nevertheless, counter-trend trading is somewhat riskier than the other mentioned strategies and should be used only by more experienced traders.
$Sorrento Therapeutics Inc$ $AMC Entertainment(AMC.US$ $Micron Technology(MU.US$
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Aydin Yilmaz : Thanks for sharing, it's helpful to me!
OFFICER TRUTH OP Aydin Yilmaz : Glad to be happy to help!