So often new traders place a trade without even placing a stop loss position! A flag is a classic technical analysis pattern that predates anyone reading this article. It's hard for people to think of day trading in terms of ranges, because most people assume day trading is some wild man's game with flashing lights bouncing off the screen. A monitor's resolution refers to how many pixels are displayed on the screen. This is where USB monitors come in handy. Move position to break even after 50 pips in profit.
These five day trading setups (entry strategies) occur most days, and almost always at least one or two of them occur each day (but not necessarily all in one day). Learn all these trade setups to starting exploiting their profit potential.
Day Trading Computer Monitors
A post shared by Investors Underground investorslive on Feb 11, at 5: Once you have your trading computer set up, you'll want to focus on your computer monitors also referred to as "displays. Make sure the monitor is compatible with your PC so you don't need to buy an adapter.
There is no golden answer to this question. Don't get additional monitors for the sake of it. Think about what you need the monitors for and continue to upgrade over time. For example, if you can fit 4 charts on each monitor and you like to watch 8 charts during trading hours, get 2 monitors.
If at one point you decide you want to watch 12 charts, you can always add a third. More monitors means more things to focus on, and that's not always a good thing. Check out these trading desks. A monitor's resolution refers to how many pixels are displayed on the screen. Additional pixels add higher levels of clarity and allow you to fit more windows on a single screen. Resolution can often come down to preference.
If you have extra budget, you may consider exploring higher resolutions like x or 4K x This question comes down to a preference and b desk real estate. What do you have room for and how do you want your setup to look?
For example, you could get similar screen real estate by choosing either 3 inch screens or 2 inch screens. Chances are, if you are getting more than 2 or 3 external monitors, you will need to mount them.
Mounting monitors can also save you a You have a few options:. Desk Mounts - Desk mounts can be used to mount monitors. This is generally one of the least flexible options but may be suitable for a couple of monitors.
You can usually mount up to 3 monitors on one stand. For most day traders, a simple mobile trading setup will do. Chances are, if you are away from your desktop, you won't be trading too actively. A mobile phone or basic laptop will suffice in most situations. That said, if you travel frequently or just want to upgrade your mobile setup, here are some considerations.
Your trading laptop is the most important part of your setup. It needs to be able to run smoothly and support any mobile monitors you may have. Getting higher quality specs on a laptop can be more expensive than building a new desktop. If you already have a decent laptop, consider using that or upgrading certain components vs. Nate's Setup Asus Zenbook Pro: A post shared by Investors Underground investorslive on Apr 3, at 1: This is where USB monitors come in handy.
USB monitors plug directly into your laptop and can be used as additional monitors when you are on the road. Making life simpler one gadget at a time.. This can lead to over trading, taking to much risk on any one trade, revenge trading and other habits that are self sabotaging behaviors and not in your individual best interests.
The best trading setups can provide a risk reward that maybe 5, 6, 7 may be 10 times to 1. These are the trades that can provide more pips in one trade than day trading may provide in a week or a month for some traders. Just food for thought. As a trader, you have to design your trading style around your hours of availability, your risk tolerance, your objectives and goals and other factors. No matter what style or time frame you trade, the best trading setups require patience, and it pays to wait for them!
If you got value from this, share it. Drop me a comment below. Welcome to our website. If you continue to browse and use this website, you are agreeing to comply with and be bound by the following disclaimer , together with our Terms and Conditions.
This website is for general informational purposes only and nothing contained on it is or is intended to be construed as advice. It does not take into account your individual objectives, investment objectives, financial situation or needs.
It should not be used, relied upon or treated as a substitute for specific or professional advice. The articles and other information on the website should not be your only source of information but should be treated as a guide only. We make no representations, promises, warranties or guarantees regarding any positive impact on your business or financial situation including revenue, profits or otherwise. Your stop should be placed at the high of the engulfing candle. These shadows tend to occur at turning points.
And they tend to lead to large price moves! As with the rest of the candle stick patterns, we wait for the long shadow candle to close and we place our trade at the open of the next candle. Your stop should again be placed at the extreme high or low of the shadow candle and trailed to follow the trend. Again these candles tend to form at price reversals giving a strong signal for traders. Its the same trick! We wait for the long hammer candle to close and we place our trade at the open of the next candle.
Your stop should again be placed at the extreme high or low of the hammer candle. To start I needs to assume that you know what is the support and Resistance in Forex trading. If not see few simple definitions and examples below. Support and Resistance are psychological levels which price has difficulties to break. Many reversals of trend will occur on these levels. The harder for price to cross a certain level, the stronger it is and the profitability of our trades will increase.
The most basic form of Support and Resistance is horizontal. Many traders watch those levels on every day basis and many orders are often accumulated around support or resistance areas. Many novice traders treat the support and resistance as an exact price, which they are not. These levels are probably the most important concepts in technical analysis.
They are a core of most professional day trading strategies out there. Role Reversal is a simple and powerful idea of support becoming a resistance in the downtrend and the resistance becoming a support in the uptrend.
Let see how this plays out in the uptrend. Once the price is making higher highs and higher lows we call it uptrend. Technical trader must assume the price is going to go up forever and only long trades should be considered.
Once the uptrend is defined, the lowest strategy to trade is — buy on pullbacks. As per definition of an uptrend, the price punching through the resistance and pullback before it makes another higher high. After making a new higher high, the price in uptrend must correct.
It is likely to correct to the new support level. This can present an excellent buying opportunity for bulls. Risk management must be applied. If the market is in downtrend, the price will punch through supports making new lower lows. The broken support becomes new resistance and offers opportunity for short positions.
Sometimes the price will pull back a bit further than just the former support or resistance. It might retrace toward other important technical levels.
I like to combine pure price action with other major, widely used leading indicators. My favourite would be: Pivot Points and Fibonacci retracements. After many years of using these tools, I can say with confidence, they are pretty accurate. If you are looking to buy the market after the price made fresh high, you would be waiting for the price to retrace towards role reversal, Fibonacci Level or moving average.
You can divide you position into 3 equal parts and set limit orders based on the logic above: This way you lower the risk and increase the odds of getting filled. Bollinger bands are a measurement of the volatility of price above and below the simple moving average. So, the Bollinger band squeeze trading strategy aims to take advantage of price movements after periods of low volatility.
The Bollinger band indicator should be set to 20 periods and 2 standard deviations and the Bollinger band width indicator should be switched on. When trading using this strategy, we are looking for contraction in the bands along with periods when the Bollinger band width is approaching 0. When all the conditions are in place, it signifies a significant price move is ahead as indicated within the green circles above.
A BUY signal is generated when a full candle completes above the simple moving average line. A SELL signal is generated when a full candle completes below the simple moving average line.
The narrow range strategy is a very short term trading strategy. The strategy is similar to the Bollinger band strategy in that it aims to profit from a change in volatility from low to high. It is based on identifying the candle of the narrowest range of the past 4 or 7 days. Quite often you will find two or more narrow candles together this only serves to contract the volatility and will often lead to an even larger breakout of the range to come. HOW do I trade it?
Once a narrow candle is identified we can be reasonably sure that a volatility spike will be close at hand. In general this is a very aggressive short term strategy as you can see by the amount of signals that are generated in the chart shown. As such this aggressiveness will be caught out by a ranging market and may lead to several losing trades in a row. The aggressive nature of the strategy should be matched with an equally rigorous stop loss regime.
The merits of the system shine when the market begins to trend in a particular direction. Those positions should be closed when an opposing signal is generated. Both trades were then closed when the RSI moved back below Day trading, and trading in general is not a past-time! Trading is not something that you dip your toes into now and again.
Day trading is hard work, time consuming and frustrating at the best of times! BUT, by recognizing the difficulty and learning some basic trading strategies you can avoid the pitfalls that most new traders fall into! The honest truth of the matter is this, most new traders get involved because they see huge profits straight ahead by simply clicking BUY.
Believing they will wake up the next morning a newly minted millionaire! What actually happens goes more like this. Your friend has just opened a trading account, he claims to have made a hundred dollars in ten minutes, he just sold the EURUSD because the U. S economy is so great right now, it said so on TV! You wake up the next day and the market has moved against you by points, and your account is wiped out!
Lets look at the facts. There are three main reasons behind the high failure rate of new traders, and you can avoid them easily! As in the story I told above, trading based on hearsay or some popular narrative will lead you to almost certain doom! The value of using a tried and tested trading technique is immense, and will save you from loosing your hard earned savings. By using a day trading strategy, you remove the emotional element from the trading decision.
A trading strategy requires a number of elements to be in place before trading. So, when those elements are in place, you place the trade.
How to Build a Trading Computer Setup
By Galen Woods in Trading Setups on April 13, The Floor Trader Trading System is an excellent retracement strategy found on Trading-Naked. It uses two moving averages to determine the trend. Summary of Day Trading Setups. In this article we covered 6 classic day trading setups. I could have easily highlighted another dozen or so; but that would only expose one of the main problems confronting active traders. There are just too many opportunities present in the market on any given day. Price action trading setups work well in the forex market. The bear trend bar failed with a bull trend bar. This pattern is also known as the pipe pattern. This trend bar failure was also an inside bar failure. However, the signal bar was a doji and not ideal. The bear trend bar had limited follow-through.