5 Most Used Trading Strategies

Breakout Trading

If you use this trading strategy you are looking for resistance levels. Many times, prices of one asset reaches a certain threshold that it is unable to surpass this is called the resistance. If it do not surpass this level the asset will retrace back and trade at lower levels, but if it goes above the resistance level, the asset will go above the resistance level, it can be expected to continue its upward rally.

As for all trading strategies it’s not a 100% guaranty, sometimes the price action can move above and below the resistance level freely and this strategy won’t work.

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