4 Day Trading Strategies for Beginners

Key concepts explained in this video

Range consolidation

This is where the price is moving sideways, accumulating orders as it finds orders in the market (Areas of Balance). This is otherwise known as the consolidation zone.

Range expansion

This is where prices move away from the consolidation zone breaking to new areas of balance.

4 Trading Strategies

The Channel Pater

A consolidation of price centred between 2 parallel trend lines.
This often leads to price breaking higher.

Head and Shoulders Pattern

They are notorious for reversal signals oftren found at the tops and bottoms of a chart. They can be shorted below the neckline.

The Flag Pattern

Flat top or bottom consolidation, price forms a tight wedge that eventually leads to a breakout, and these breakouts are often very powerful.

Wedge Formation

This is very similar to the flag pattern, this formation consolidates towards a major break out, however, indecision is more prevalent here as buyers and sellers are matched and the price can go either way. Caution is advised when trading such a patter, and reference to FA should be made.