How To Identify Swing Trade, Positional Trade, Long Term Trade In 10 Minutes?
July 16, 2022
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There are a lot of people who want to find out the proper techniques to identify profitable trades in the financial markets. Whether a swing trade, positional trade, or even a long-term trade, you can use a specific strategy to find your idle trading style. But, before jumping on to the strategy, it is equally important to understand what these trading styles mean?
Swing traders normally enter the market when a trend breaks. Price volatility is common near the conclusion of a trend when the new trend attempts to establish itself. Swing traders purchase or sell when price volatility occurs. Swing trades are often kept longer than a day but for a shorter period of time than trend transactions. Swing traders frequently develop a set of trading rules that are based on technical or fundamental research.
Position trading uses longer-term charts ranging from daily to monthly in conjunction with other approaches to assess the current market trend. Depending on the trend, this sort of transaction might continue from days to many weeks or even longer.
Long-term trades are the trades that keep on going for months and even years. You can even consider them short-term investing. These trades are ideally taken on big timeframes such as weekly or even monthly. Generally, the traders using this style are more concerned about the long-term gains and larger profits than the short profits.
By now, you must have understood the different trading styles that people use in the markets are. Now, it’s time to discuss the best strategy that can be used to make profits through any trading style, and that too within minutes. So, let’s get started without any delay.
What Is a Golden Cross?
A golden cross happens when a short-term moving average (MA) crosses over a long-term moving average (MA). It is a steady, optimistic price direction that is compatible with the majority of crypto trading assets.
The original golden cross trading approach emerged from the stock market. Two moving averages are the primary components of the golden cross pattern:
The 200-day MA is amongst the most often used, whereas the 50-day MA is a leading moving average.
What Is a Golden Cross?
Trading is more practical than simply knowing the theory. If you want to get the most out of the golden cross, you must make sure you use it correctly.
But how should the golden cross be used?
First, you must confirm that the crossing occurs and that a candle shuts over the crossover. Later on, you should concentrate on developing a trading strategy with proper stop loss and take profit levels.
There are several trading techniques based on the golden cross, and you may benefit from any of them.
EMA Crosses: 50 More than 200 SMA
It is fairly simple to identify the 50 EMA and 200 SMA crossovers.
Here is a step-by-step method to trade the golden cross of the 50 and 200 EMAs:
This is how you can easily find a good trade with an excellent win rate under 10 minutes. There are many screeners available online which screens and shows the stocks that are facing a golden crossover. Hope you will use this in future trades.
