2.3 Trading Strategies

1. Define the Trading Objective The first step in strategy development is defining clear objectives. This involves answering two essential questions: The answers help determine whether the strategy should be...

1. Types of Chart Patterns Chart patterns are recurring shapes that form on price charts and are used to assess potential future price movements based on historical price behavior. They...

1. What is an IFVG? An Inverse Fair Value Gap (IFVG) originates from the same structural formation as a standard FVG. It is created using a three-candle sequence, where the...

1. What is an FVG? A Fair Value Gap (FVG) can be classified as either bullish or bearish. An FVG forms when the market moves aggressively in one direction, creating...

1. What Is the ORB Strategy? The Opening Range Breakout (ORB) strategy is based on the price range formed shortly after a market opens or when a major trading session...

1. What is Supply and Demand Trading? Supply and Demand Trading is a price action–based analytical approach that emphasizes the economic principles of supply and demand within financial markets. While...

1. What is Swing Trading? Swing trading is a short-to-medium-term trading style that aims to capture price movements occurring over several days to several weeks. Unlike day trading, where positions...

The Elliott five-wave pattern describes how market prices tend to move in a natural, wave-like sequence, which is categorized into five distinct waves. Wave 1: Initial Impulse Wave 1 takes...

1. Definition of BOS and CHoCH Break of Structure (BOS) occurs when the price breaks a recent high or low.This indicates that the existing market structure has been extended in...

1. What is a Trading Strategy? A trading strategy is a structured plan designed to guide decision-making in the financial markets. It provides a consistent framework for identifying opportunities, executing...