📈 1. **Trend Line Trading**
- **Concept:** Used when prices move in a clear upward or downward direction.
- **How it Works:** Draw lines connecting price highs (resistance) or lows (support).
- *Uptrend:* Higher highs + higher lows.
- *Downtrend:* Lower highs + lower lows.
- **Trading Strategy:**
- **Buy** when price bounces *up* from a support trend line (in an uptrend).
- **Sell** when price bounces *down* from a resistance trend line (in a downtrend).
- **Example:** If Reliance shares rise steadily from ₹2,000 to ₹2,500, buy near the trend line support.
---
### 🚀 2. **Breakout Trading**
- **Concept:** Capitalizes on price breaking out of a consolidation range, signaling new momentum.
- **How it Works:** Identify key support/resistance levels. A breakout suggests trend continuation.
- **Trading Strategy:**
- **Buy** when price closes *above* resistance.
- **Sell** when price closes *below* support.
- **Example:** TCS shares trade between ₹3,000-₹3,200 for months, then close above ₹3,200 → **Buy signal**.
---
### ↔️ 3. **Range Trading**
- **Concept:** Profits from price oscillating between horizontal support/resistance levels.
- **How it Works:** Trade the "bounces" between range boundaries.
- **Trading Strategy:**
- **Buy** near range support.
- **Sell** near range resistance.
- **Example:** HDFC Bank fluctuates between ₹1,400-₹1,500 → Buy at ₹1,400, sell at ₹1,500.
---
### 📊 Summary Table:
| **Strategy** | **Best Used In** | **Entry Trigger** | **Risk Management** |
|--------------------|------------------------|--------------------------|--------------------------|
| Trend Line Trading | Strong trends | Bounce off trend line | Stop-loss beyond trend line |
| Breakout Trading | Consolidation phases | Close beyond S/R level | Stop-loss below breakout candle |
| Range Trading | Sideways markets | Touch of S/R boundaries | Stop-loss outside range |
---
### 💡 Pro Tips:
1. **Confirm trends** with volume/indicators (e.g., RSI >50 for uptrends).
2. **Avoid false breakouts** by waiting for a candle to *close* beyond S/R.
3. **Exit range trades** immediately if price breaks the range.
4. **Always use stop-loss** – risk ≤1-2% per trade.
> "Price action + volume are your most honest trading partners."
Let me know if you'd like a visual chart example for any strategy! 📉✨
