How to Trade Trend-Based Trading StrategiesS&P 500SP:SPXVincePrinceHello There, Welcome to this tutorial about trading strategies. These are strategies that I used myself several times to trade profitable trades. They can be applied to several trading symbols in the market. However, as I experienced, the best is when they are applied in trading stocks or cryptocurrencies. In the following sections, I will introduce each of the trading strategies and how to appropriately trade them with the individual entry scenarios. PRICE-MOMENTUM STRATEGY The price-momentum strategy is based on the idea that the price action moves in the direction of a previously strong momentum encounter. In most cases, this would be a strong bullish spike towards the upside with additional high bullish volume supporting this spike. Once such a strong price move is established, the price action is likely to follow through with a continued trend in the direction the initial move came from. Entry Long: When the strong bullish momentum spike is established towards the upside + High bullish volume spikes support the price move. Entry Short: When the previously established momentum slows down and the previously established uptrend line crosses towards the downside. CHANNEL BREAKOUT SETUP This strategy is a great strategy to consider both long and short entries. In this case, the price moves within a channel and bounces between the boundaries. Once the price breaks out above the upper boundary, this is going to be a strong bullish long signal. Once the price breaks out below the lower boundary, this is going to be a strong bearish short signal. It is important to wait for a definitive breakout before establishing the position. Entry Long: When price closes above the upper boundary of the channel + Additionally supported by strong volume in this direction. Entry Short: When price closes below the lower boundary of the channel + Additionally supported by strong volume in this direction. SUPPORT AND RESISTANCE TRADING This strategy follows a very strong and highly sophisticated trading approach, as the most price action is likely to form important support and resistance levels. These levels have the characteristic that previous support becomes resistance and previous resistance becomes support. Once the trend has marked a definitive support or resistance level and the trend is out of the range, the previously established level becomes the opposite. Entry Long: When price establishes a previous resistance level + Price breaks out above this level and confirms it as support. Entry Short: When price establishes a previous support level + Price breaks down below this level and confirms it as resistance. SIMPLE MOVING AVERAGE The moving average is a trend-following indicator that is smoothed throughout the trend direction. In the simple version it is one moving average that is moving with the trend. It should be adjusted appropriately to the timeline to trade in. Once the price action crosses up or down this moving average, a long or short position should be established in the direction it crosses through. Entry Long: Once the price action crosses above the moving average and closes above it. Entry Short: Once the price action crosses below the moving average and closes below it. TWOFOLD MOVING AVERAGE The twofold moving average is an extension of the simple moving average. In this case the signal occurs when the faster moving average crosses above or below the slower moving average. As the faster-moving average points in the appropriate trend direction, this already signals the direction through the crossover. Entry Long: The faster moving average crosses above the slower moving average. Entry Short: The faster moving average crosses below the slower moving average. THREEFOLD MOVING AVERAGE This is a highly important extension of the one- and twofold moving averages. As there is an additional smaller moving average that is smaller than the two others, which additionally confirms the trend direction as it first signals the trend. The additional confirmation then comes when the middle moving average also crosses above the slow moving average. Entry Long: The fastest moving average has crossed above the middle moving average + The middle moving average has crossed above the slowest moving average. Entry Short: The fastest moving average has crossed below the middle moving average + The middle moving average has crossed below the slowest moving average. In this manner, thank you a lot for supporting my idea and moving forward with trading strategies. What do you think about the strategies? Have you ever traded them before? Let us know in the comments! VP