Day trading really comes down to getting into a good and steady rhythm. Your specific trading style is what makes your market experience different from other traders. The Apiary Fund is the brokerage company I have gotten all my education and experience through, and they want their trading community to be comfortable and confident in their day trading setups. With that being said, as I list some of the most common day trading setups, you need to look for the setup that fits best with your trading style in order to have forex success.
The 1st setup is day trading setup breakout. No matter if the market is ping-ponging slightly or steadily trending sideways, there will always be breakouts in the morning to watch for. A breakout is defined when a trend goes up or down with high volume first thing on the open. These types of moves are almost always due to a news event breaking. If following some day trading breakout rules, you can expect to see some quick returns, you will value volatility and learn to act quickly with trading decisions.
The 2nd setup is fade the breakout. Which is based on your ability to quickly and accurately pre-screen a breakout will determine how often the market will continue in direction of a leading trend. Being able to grasp the concept of volatility into your trading system will increase your overall wins. There are many failing breakouts, as well as continuing trends and it’s wise to profit off failed breakout attempts. Following some fade breakout rules, you can expect to see some quick returns, valuing volatility and able to make decisions in seconds.
The 3rd setup is trading ranges which is tricky for a lot of traders to grasp because of its misconception of day trading. The slow-moving ranges with larger sums of money to achieve the same profits make some traders feel uneasy. To see if this setup is the right fit for your trading style, it’s wise to review the trading range rules and see if you’re comfortable with pursuing the setup. Some of the range traits for the Forex trader are: slow to react, enjoys performing thorough analysis from minutes to hours and sees volatility as an unwanted risk.
The 4th setup is late day breakout. At the end of the Forex day around 2 PM, you can expect to see volatility pick up again. This is a great trading opportunity for active traders as the high low ranges set earlier in the day are breached. Following late day breakout rules, some of the benefits are slow to react, enjoys performing thorough analysis from minutes to hours, enjoys volatility and likes riding the trend into the close. There are just too many opportunities present in the market on any given day. Do you know what setup you should be trading after reading this? The Apiary Fund reviews these setups regularly so you can inform yourself about the markets and be successful.