Trading strategies

Beginner Questions Candlesticks, Chart Patterns, and Price Action
1

Although it appears to be a straightforward question, Has anyone had a solid response for me about this?
There are numerous trading strategies that claim success.
However, I’m generally curious as to what reasoning these approaches for foretelling price movement are built on.
Thanks all.

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2

Basically, in todays markets fundamental events drive market sentiment. These can be sudden, like WW3 is starting or as a media reaction to a change in global interest rates. Which means that price movement is always driven by order flow, which can be severe or not.

And, without a crystal ball, that’s as best as can be expected

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3

Probably past success or more likely, somebody else’s strategy that worked once upon a time. That’s my guess.

4

I think it’s statistical advantage

5

ww3? what are you talking about? you mean Ukraine war?

6

we will be happy to hear yours buddy.:)))

7

what do you mean by that?

8

No. I mean like a new war breaking out, or Russia going nuclear against Ukraine.

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9

Generally, trading is a game of probability so you can take metrics from back test and calculate probability of success this strategy. Note, you can build many strategies with high success probability

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10

Actually traders have different strategies but not all of those strategies are effective for price foretelling.

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11

Beyond trading, my sincerest hope is for global peace to prevail. Our thoughts and prayers extend to Ukraine and all regions seeking harmony. any way thank you buddy.

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12

Despite struggling with math in school, trading has motivated me to become friends with numbers. It’s quite amusing! Additionally, I’m grateful to have found a community like this where everyone supports me unconditionally.

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13

You’re absolutely right! Traders employ various strategies, but not all of them are effective in accurately predicting price movements. It’s crucial to find a strategy that aligns with your trading style and provides consistent results.

14

That being said, here are a few common approaches used in trading strategies:

  1. Technical Analysis: This approach involves studying historical price patterns, charts, and various technical indicators to identify trends, support and resistance levels, and potential entry and exit points. Technical analysts believe that historical price data can provide insights into future price movements.
  2. Fundamental Analysis: This strategy involves analyzing the underlying factors that affect the value of an asset, such as financial statements, economic indicators, industry trends, and company news. Fundamental analysts aim to determine the intrinsic value of an asset and make trading decisions based on the perceived discrepancy between the intrinsic value and the market price.
  3. Quantitative Analysis: Quantitative trading strategies use mathematical models, statistical techniques, and algorithms to analyze large amounts of data and identify patterns or anomalies. These strategies often involve the use of automated systems and high-frequency trading.
  4. Sentiment Analysis: This approach focuses on gauging market sentiment and investor psychology to predict price movements. Sentiment analysis involves monitoring news, social media, and other sources of market sentiment to identify shifts in investor attitudes that may impact prices.
15

this can be a good approach, totally agree . no way to deny

16

Most of the strategies are technical based and they identify market trends according to support, resistance and average market flow. But for wider knowledge, you can go for fundamental market analysis.

17

I found mean reversion and scalping are best for me. Strategies may vary depending on your trading platform.