Friday, March 22, 2024

Price trading strategies

 There are 4 main price based strategies - 1) trend following (find a reversal aka new trend, hop on as soon as possible and HODL till it ends), 

2) breakout (stalk a consolidation, hop on breakout and exit at 1-2x of the height of consolidation),

 3) mean reversion (identify an established trend, define a distance that constitutes stretched too far from the trend average, hop on, exit when price meets the trend),

 4) range trading (find an established range, buy in the bottom third, sell in the top third). Everything else is finessing entry/exit and position sizing

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