Welcome to Module seven. In this module, we will be looking at the various trading styles. And if you have any questions, feel free to mail them to me at info at Fx automate.com. Looking at the introduction, so there are many different trading styles each is well suited to different market conditions and even your personality. It all depends on the time you are willing to invest and the markets you are looking to trade. Most trading styles boils down to three things time in terms of how long you're planning to keep a trade frequency in terms of how often you're applying to trade and analysis in terms of taking other fundamental or technical view or even a combination of both.

Looking at fundamental analysis, so according to investopedia fundamental analysis is a method of evaluating a security in an attempt to measure its intrinsic value by examining economic, financial and other qualitative and quantitative factors. In other words, considering the macro economic climate in which she is trading and trying to establish the intrinsic value of the underlying asset based on the forces that are driving supply and demand. fundamentals can be established by considering news events from sources such as Bloomberg or since that is the stock exchange news network or even considering the latest results or balance sheets of a company. Looking at technical analysis now, in contrast to fundamental analysis, technical analysis assumes that the price of a security already reflect all publicly available information. In day four solely focus on statistical analysis of historical and current price data in order to identify trends and high probability outcomes.

With technical analysis we aim to understand market sentiment by looking at supply and demand and effectiveness. on price, which is also called price action. Most trading stocks use this type of analysis as a foundation. And some traders will use fundamental analysis to help them decide what markets to trade, but in use technical analysis to determine when to trade the first to install it, we will be looking at this as position trading. Now, position trading is probably the trading style best suited to those who do not wish to spend a lot of trading, time trading. And we get want to position themselves to maximally benefit from larger price movements.

Position trading usually involves taking a medium to longer term view that is weeks to months and looking only to enter at end of day prices. So they will only look to enter at the end of day. trades are usually taken based on either a fundamental view or a longer term technical play based on a larger timeframe technical pattern that plays out on weekly or monthly charts of benefits would include not having to spend much time in front of the screen and potentially taking advantage of larger price movements. intraday trading install controls to position trading is taking a position that never lost more than one day as all open positions are closed at the end of the trading day. Unless the strategy is automated, this doctrine is not well suited to those who cannot afford to spend most of the day monitoring active trades. The basic idea of intraday trading is to take advantage of intraday price movements and being flexible enough to benefit from minor fluctuations in price in order to generate small yet frequent gains.

Trades are usually entered based on a smaller time frame like the one minute or five minute time frames and your triggers are primary, primarily based on technical analysis. trend trading, trend trading is a form of position trading whereby the idea is to get into to a position based on the direction of the primary trend and stay in the trade for as long as a trend remains intact. trades are usually entered on the first confirmation of trend continuation and often a pullback or a retest. trend trading works based on a daily timeframe as this allows traders to avoid the noise and volatility that is associated with smaller timeframes. In Module eight, I will be discussing different market tops along with how to identify your trains your primary and secondary trains and in module 10, we will be discussing moving averages now. We can use them to identify trends, swing trading, and swing trading we aim to benefit often natural swing in markets and this is done by trying to identify turning points in the market.

Swing Trading makes extensive use of technical analysis to identify support and resistance with these swings are most likely to occur. is also called swing points, or practice how your swing trading is best suited to arranging market we price things to move sideways in a well defined range and populate on frames the swing trade would include the one hour as well as smaller time frame such as the 15 minute and five minute time frames. In swing trading, traders will typically go short when pushing up against resistance and long when bouncing off support. Right up trading broker trading is one of the cheap timeframe independent training styles and there are quite a few different versions of record trading, but essentially boils down to either price breaking out of a predefined or defined range or price breaking out of the technical charting pattern. The benefit of breakouts is that if right you can potentially catch a significant price move very early on.

However, there's always the possibility for breakouts to fail, causing what is referred to as a bootstrap if you are alone. Repeat trap if you were short. And this was important to wait for a successful retest of the breakout level before entering into your trade. So maybe let me quickly show you an example from the chart. So here's a chart of the Euro USD. And I've tried to identify some of the major labels using the orange horizontal lines.

So what I'm trying to show you here is that look at the price over year, price is trying to push up against our aid support. And it looks like it's breaking breakout support, but then immediately reverses. Now what happens here is this can be referred to as a bootstrap as some of the more bullish or positive traders would actually try to take a long position at this stage. But having not waited for a confirmation of that breakout price has reversed and actually went in the opposite direction. Here's another example. As you can see, he's considering this as overhead.

And resistance level, price breaks out of the level actually pushes through to more levels. And years as they say, the second level, it pushes through the level didn't replaced immediately files actually trapped in some of the people who belong at this point. What we can see is here the process ranging a bit, it's again, pushing up against a label coming back. And what is happening is looking and if we zoom out slightly sad to say that speak, would you see this has been broken, but it's actually been retested over here. And, again, yet this table is retested and it fails. So this will actually be well suited for a range trade or a swing trade.

But yeah, let's look for more examples of breakouts and three days. So here's an example another example of a bootstrap we British traders would have tried to trade the breakout at that level. And if it didn't retest, it failed, and they were trapped again, you're a breakout followed by a very well defined, read this level has been broken out of is a retest of this level, and a continuation of the trend and a very nice stream to follow. So that would be an example of a very nice retest of that level. So that's just what I mean with wait for confirmation before entering into a trade, especially when you're trading breakouts out of a level or a technical pattern. scalping.

Now, you might be thinking about a pitcher being caught by a Native American Indian warrior fitting in Lee holding a knife to the guy's scalp right now. But fortunately, this form of scalping refers to taking a very short term position usually lost in only seconds or minutes and almost never longer than an hour. Now in order to gain only a couple of points, profit idea is to get in and out of the market as soon as possible riding the momentum of other increased volatility or price action due to natural scalping determining your risk reward ratio is very difficult and because of the small targets and and due to spreads, and it can very quickly eat away at your gains. So scalping and mopping is does basically to automated systems. mean reversion trading according to visit investopedia. mean reversion trading looks to capitalize on extreme changes within the pricing of a particular security based on the assumption that prices eventually revert back to with the mean or average.

There are various technical indicators that can assist with trading dispel. Most notable these are the Bollinger Bands developed by john Bollinger that uses a two standard deviation band calculated from a moving average. And joining pullbacks is also a form of mean reversion trading are usually done using the Fibonacci retracement tool. Now I will explain all these indicators in much more detail in module nine. And then that concludes Module seven. Thank you very much and if you have any questions, feel free to mail them to me and info info at export summit.