The trend-catching strategy involves holding onto the ongoing trend until it changes, i.e., exiting the position with the changing trend lines and booking profits.
The Fibonacci Retracement strategy helps establish optimal entry points during a swing trade. those who intend to use this strategy can use such tools to draw horizontal lines at various percentage levels, say 23.6%, 38.2%, and 61.8%, to identify the potential reversal levels.
A breakout is said to take place when the price of a stock moves away beyond the defined price range, i.e., goes above the resistance levels. Swing traders who intend to use this strategy search for price breakouts and mostly open positions at the beginning of an uptrend situation.
Support and resistance trades are a kind of trend continuation trades. In this case, the trader detects a clear entry point to enter the trend’s direction. Anyone interested in trading this way should know two prerequisites: the stock must be trending and have well-defined support and resistance levels.
It is the strategy of trading against the momentum. This means the trader will buy while the market sells and vice versa. By this, the trader will be betting on reversals to profit from the potential corrections.