Moving-average crossover
Use two averages of different speeds. When the faster one crosses above the slower one, recent prices are rising faster than the longer-term pace, which some traders read as the start of an uptrend.
Trading strategies to practise
Plain-English summaries of widely used approaches, each with entry, exit and risk rules. Open any one on the desk with the right indicators already switched on, and test it with virtual money.
Pullback to a rising average
In an established uptrend, price often dips back toward a rising average before continuing. Rather than chase a high, wait for the dip and enter when the move resumes.
RSI overbought / oversold
The Relative Strength Index (RSI) measures how stretched a recent move is on a 0 to 100 scale. Readings under 30 are called oversold and above 70 overbought. The idea is that stretched moves in a range often snap back.
MACD signal-line cross
MACD subtracts a slow average from a fast one and compares the result with its own smoothed signal line. A cross of MACD above the signal line suggests momentum is turning up.
Bollinger Band bounce
Bollinger Bands wrap price with an average and bands two standard deviations away. In a range, price touching a band often drifts back toward the middle line.
Bollinger squeeze breakout
When the bands narrow, volatility is unusually low. Quiet periods often end with a larger move, though the squeeze does not tell you which way.
Range breakout
Price spends time moving sideways between a floor and a ceiling. A close decisively beyond that range can start a new move.
Support and resistance bounce
Prices often react around levels where they turned before. Support is a floor where buyers have shown up; resistance is a ceiling where sellers have.
Stochastic in a range
The Stochastic oscillator shows where the close sits within the recent high-low range. Low readings mean price is near the bottom of its range, and high readings the top.
ATR-based stops and sizing
Average True Range (ATR) measures how far an asset typically moves in a bar. Setting stops by ATR instead of a fixed dollar amount adapts your risk to how wild the market is.
ADX trend-strength filter
ADX measures how strong a trend is, regardless of direction. High readings favour trend strategies and low readings favour range strategies. It helps you choose which playbook to use.
VWAP intraday pullback
VWAP is the volume-weighted average price for the session. Many day traders treat it as a fair-price line: trading above it is seen as strong, below as weak.
Ichimoku trend check
Ichimoku draws several lines at once to show trend, momentum and support or resistance. Price above the cloud (the area between Span A and Span B) suggests an uptrend.
Dollar-cost averaging
Invest the same amount on a regular schedule, regardless of price. You buy more units when prices are low and fewer when they are high, which reduces the need to time the market.
Buying the dip (and its risks)
Buying after a fall hoping for a bounce is popular, but a dip can be the start of a bigger decline. A rule-based version buys dips only in a rising trend and defines the exit before entry.
Illustration only; ignores slippage, tax and most costs. Not financial advice.