Where to Find the Best Trades? The Simplest Trading Strategy!
Trading must be simple! It can be simple for everyone if you know when to buy and when to sell. But how to know it?
It is obvious that the best sell trades should be at the top as well as the best buy trades should be at the bottom. In other words, when the market is overbought, it is the right time to search for sell opportunities. When the market is oversold, it is the right time to search for buying opportunities.
Please, look at the daily chart of EURUSD. It is a simple example of what I'm talking about. We can see the top and 2 bottoms where we could have the best trades using the daily and hourly timeframes.
And here, you should have a question: "How to be sure that the market is overbought or oversold?"
Firstly, in trading, it is impossible to be sure. There are no 100% reliable signals and workable patterns. It is a fact, and there is nothing wrong with it. We must not have a goal to be right all the time. You can have 6-7 profitable trades from 10 and be in good profit in the long run.
Secondly, there are different instruments which can tell you that the market is overbought or oversold. In this example, I used 3 indicators: Bolinger Bands, RSI, and Stochastic. I used RSI and Stochastic together just to show you how they work. It is possible to pick one of them and use it with Bollinger Bands.
How to use these indicators and get the right signals for buying and selling? It is simple!
When the price reaches the upper band and RSI/Stochastic is in the overbought zone, we can search for selling opportunities. The market is overbought, and it can give the best sell signals.
When the price reaches the bottom band and RSI/Stochastic is in the oversold zone, we can search for buying opportunities. The market is oversold, and it can give the best buy signals.
When the price is between bands, the market can move in any direction. It is not the right time for trading.
Please note, this model is super powerful in range market conditions. When the market is in a trend, you must trade following the rules for trend market conditions.
What type of trading do you prefer? How do you search for trade opportunities? Which tools do you use for it? Please, share your thoughts in comments!
P.S. as I don't use like-bots and other solutions that show great "interest" to my posts, I will be grateful if you support my work by your LIKEs and comment. Of course, if you can do it. The feedback from REAL people is priceless!
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
It is obvious that the best sell trades should be at the top as well as the best buy trades should be at the bottom. In other words, when the market is overbought, it is the right time to search for sell opportunities. When the market is oversold, it is the right time to search for buying opportunities.
Please, look at the daily chart of EURUSD. It is a simple example of what I'm talking about. We can see the top and 2 bottoms where we could have the best trades using the daily and hourly timeframes.
And here, you should have a question: "How to be sure that the market is overbought or oversold?"
Firstly, in trading, it is impossible to be sure. There are no 100% reliable signals and workable patterns. It is a fact, and there is nothing wrong with it. We must not have a goal to be right all the time. You can have 6-7 profitable trades from 10 and be in good profit in the long run.
Secondly, there are different instruments which can tell you that the market is overbought or oversold. In this example, I used 3 indicators: Bolinger Bands, RSI, and Stochastic. I used RSI and Stochastic together just to show you how they work. It is possible to pick one of them and use it with Bollinger Bands.
How to use these indicators and get the right signals for buying and selling? It is simple!
When the price reaches the upper band and RSI/Stochastic is in the overbought zone, we can search for selling opportunities. The market is overbought, and it can give the best sell signals.
When the price reaches the bottom band and RSI/Stochastic is in the oversold zone, we can search for buying opportunities. The market is oversold, and it can give the best buy signals.
When the price is between bands, the market can move in any direction. It is not the right time for trading.
Please note, this model is super powerful in range market conditions. When the market is in a trend, you must trade following the rules for trend market conditions.
What type of trading do you prefer? How do you search for trade opportunities? Which tools do you use for it? Please, share your thoughts in comments!
P.S. as I don't use like-bots and other solutions that show great "interest" to my posts, I will be grateful if you support my work by your LIKEs and comment. Of course, if you can do it. The feedback from REAL people is priceless!
Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.
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