Types of Day Trading.

Day traders looking to maximize intraday profits often use one or multiple of the following day trading strategies.

Trend Trading

Trend trading is when you look at a longer time frame chart and determine an overall trend.

Once the overall trend is established, you move to a smaller time frame chart and look for trading opportunities in the direction of that trend.

Using indicators on the shorter time frame chart will give you an idea of when to time your entries.

For an example of this style of trading, see Pip Surfer’s world-renowned Cowabunga System.

First, determine what the overall trend is by looking at a longer time frame.

You can use indicators to help you confirm the trend.

Once you determine the overall trend, you can then move to a smaller timeframe and look for entries in the same direction.

Remember this?

It’s called Multiple Time Frame Analysis!

Countertrend Trading

Countertrend day trading is similar to trend trading except that once you determine your overall trend, you look for trades in the opposite direction.

The idea here is to find the end of a trend and get in early when the trend reverses.

This is a little riskier but can have huge payoffs.

In this example, we see that there was a long and exhausted downtrend on the 4hr chart.

This gives us. an indication that the market may be ready for a reversal.

Since our thinking is a “counter trend”, we would look for trades in the opposite direction of the overall trend on a smaller timeframe such as a 15-minute chart.

Traders who use this strategy need to be quick to spot the end of a trend in order to open a position at the optimal entry point.

This strategy is fighting the trend and can work against traders at times.

Remember that going opposite of the trend is very risky, but if timed correctly, it can have huge rewards!

Countertrend trading favors those who know recent price action really well and so know when to bet against it.

Learn to Day Trade Forex

If you’d like to earn extra income trading on the Forex market, consider learning how to currency trade with Forex Smart Trade.   With their super-accurate proprietary trading tools and best-in-the-business, personalized one-on-one training, you’ll be successful.  Check out the Forex Smart Trade webinar.  It shows one of their trader’s trading and how easy, intuitive, and accurate the tools are.  Or try the Forex Smart Trade Introductory Trading Trial for just TEN dollars.

Currency trading is very risky. My results are not typical. We provide a 30-day trial so you can assess the value of our indicators and tools for yourself.

www.ForexSmartTrade.com