#trading
🟠 Specific Trading Strategies 🟠
Moving Average Crossover Strategy
Uses two moving averages: a fast one (e.g., 9-period) and a slow one (e.g., 21-period).
Buy when the fast average crosses above the slow one (bullish signal).
Sell when the fast crosses below the slow one (bearish signal).
Very commonly used in algorithmic and automated systems.
🟠 Breakout Trading Strategy 🟠
Based on trading when the price breaks key levels of support or resistance.
Confirmed with high volume or continuation patterns.
Useful in volatile markets like cryptocurrencies.
🟠 Mean Reversion Strategy 🟠
Based on the idea that prices tend to return to an average value (like a moving average).
When an asset deviates significantly from its average, a correction is expected.
Requires careful risk management.
🟠 RSI + Divergences Strategy 🟠
The RSI (Relative Strength Index) measures relative strength between 0 and 100.
Common levels: overbought > 70, oversold < 30.
Divergences between price and RSI can anticipate trend reversals.
🟠 Common Technical Tools 🟠
👉 TradingView: A widely used charting platform for technical analysis. Offers indicators, backtesting, and custom scripts (Pine Script).
👉 MetaTrader 4/5: Software for automated trading in forex and cryptocurrencies, with the capability to run EAs (Expert Advisors).
👉 Order Flow Tools (like Bookmap): Show real-time order flow, useful for scalping and identifying liquidity zones.
👉 Bots and Exchange APIs (like Binance API): Allow building custom algorithmic trading systems.
👉 Backtesting platforms (e.g., QuantConnect, Amibroker): Simulate historical strategies to evaluate their performance before trading them.