Chart Setup: Draw horizontal lines for support and resistance zones. Watch for consolidation or range-bound markets.
- Buy Signal: When the price breaks above a resistance level with strong volume.
- Sell Signal: When the price breaks below a support level with strong volume.
Rules:
- Use candlestick confirmation (such as a strong bullish engulfing candle) to enter a breakout trade.
- Set stop loss just below/above the breakout point.
- Use a trailing stop to lock profits.
4. RSI (Relative Strength Index) Strategy
Chart Setup: Add the RSI indicator (usually set at 14 periods) at the bottom of the chart.
- Buy Signal: When RSI crosses above 30 (oversold) and moves upward (indicating buying pressure).
- Sell Signal: When RSI crosses below 70 (overbought) and moves downward (indicating selling pressure).
Rules:
- Enter buy positions when RSI is below 30 and starts turning up.
- Enter sell positions when RSI is above 70 and starts turning down.
- Confirm with a candlestick pattern for extra validation.
5. Candlestick Patterns (Engulfing and Pin Bars)
Chart Setup: Observe candlestick patterns closely on your chart, especially in trend reversal areas.
- Buy Signal: A bullish engulfing pattern or pin bar forms at a support level or in an uptrend.
- Sell Signal: A bearish engulfing pattern or pin bar forms at a resistance level or in a downtrend.
Rules:
- Enter a buy trade after a bullish engulfing or pin bar pattern confirms at support.
- Enter a sell trade after a bearish engulfing or pin bar pattern confirms at resistance.
- Wait for confirmation from the next candle.
6. MACD (Moving Average Convergence Divergence) Strategy
Chart Setup: Add the MACD indicator to the chart with default settings (12, 26, 9).
- Buy Signal: When the MACD line (blue) crosses above the signal line (orange).
- Sell Signal: When the MACD line (blue) crosses below the signal line (orange).
Rules:
- Enter a buy when the MACD crosses above the signal line and the histogram turns positive.
- Enter a sell when the MACD crosses below the signal line and the histogram turns negative.
7. Fibonacci Retracement Strategy
Chart Setup: Apply Fibonacci retracement levels (usually 38.2%, 50%, 61.8%) on a recent major price swing (from low to high or high to low).
- Buy Signal: When the price retraces to a key Fibonacci level (e.g., 50% retracement) and shows signs of reversal (such as a bullish candlestick pattern).
- Sell Signal: When the price retraces to a key Fibonacci level (e.g., 50%) and shows signs of reversal (such as a bearish candlestick pattern).
Rules:
- Enter a buy trade if the price tests the 50% or 61.8% level and shows bullish reversal.
- Enter a sell trade if the price tests the 50% or 61.8% level and shows bearish reversal.
8. Trendline Break Strategy
Chart Setup: Draw trendlines connecting significant highs and lows to identify the trend.
- Buy Signal: When price breaks a downward trendline and starts moving upward.
- Sell Signal: When price breaks an upward trendline and starts moving downward.
Rules:
- Enter a buy after a clean break above the trendline with confirmation (e.g., a bullish candle).
- Enter a sell after a clean break below the trendline with confirmation (e.g., a bearish candle).
9. Stochastic Oscillator Strategy
Chart Setup: Add the Stochastic Oscillator (set to 14, 3, 3) to your chart.
- Buy Signal: When the Stochastic line crosses above the 20 level (oversold) and moves upwards.
- Sell Signal: When the Stochastic line crosses below the 80 level (overbought) and moves downwards.
Rules:
- Enter a buy when Stochastic moves above 20 and shows upward momentum.
- Enter a sell when Stochastic moves below 80 and shows downward momentum.
10. Channel Trading Strategy
Chart Setup: Draw parallel trendlines to form a channel where price fluctuates between the upper resistance line and lower support line.
- Buy Signal: When the price touches the lower boundary of the channel and shows signs of a reversal.
- Sell Signal: When the price touches the upper boundary of the channel and shows signs of a reversal.
Rules:
- Enter a buy when price hits the lower channel and shows signs of bouncing upward (using a candlestick pattern).
- Enter a sell when price hits the upper channel and shows signs of reversing downward (using a candlestick pattern).
