3 Best Market Trading Opportunities to Maximize Profit Potential

19 de jul. de 2023

https://www.tradingview.com/x/kyL3henX/

Hey traders,

In the today's article, we will discuss 3 types of incredibly accurate setups that you can apply for trading financial markets.

1. Trend Line Breakout and Retest
The first setup is a classic trend line breakout.
Please, note that such a setup will be accurate if the trend line is based on at least 3 consequent bullish or bearish moves.

If the market bounces from a trend line, it is a vertical support.
If the market drops from a trend line, it is a vertical resistance.

The breakout of the trend line - vertical support is a candle close below that. After a breakout, it turns into a safe point to sell the market from.

The breakout of the trend line - vertical resistance is a candle close above that. After a breakout, it turns into a safe point to buy the market from.



Take a look at the example. On GBPJPY, the market was growing steadily, respecting a rising trend line that was a vertical support.
A candle close below that confirmed its bearish violation.
It turned into a vertical resistance.
Its retest was a perfect point to sell the market from.


2. Horizontal Structure Breakout and Retest
The second setup is a breakout of a horizontal key level.

The breakout of a horizontal support and a candle close below that is a strong bearish signal. After a breakout, a support turns into a resistance.
Its retest is a safe point to sell the market from.

The breakout of a horizontal resistance and a candle close above that is a strong bullish signal. After a breakout, a resistance turns into a support.
Its retest if a safe point to buy the market from.



Here is the example. WTI Crude Oil broke a key daily structure resistance. A candle close above confirmed the violation.
After a breakout, the broken resistance turned into a support.
Its test was a perfect point to buy the market from.

3. Buying / Selling the Market After Pullbacks
The third option is to trade the market after pullbacks.
However, remember that the market should be strictly in a trend.

In a bullish trend, the market corrects itself after it sets new higher highs. The higher lows usually respect the rising trend lines.

Buying the market from such a trend line, you open a safe trend-following trade.

In a bearish trend, after the price sets lower lows, the correctional movements initiate. The lower highs quite often respect the falling trend lines.

Selling the market from such a trend line, you open a safe trend-following trade.



On the chart above, we can see EURAUD pair trading in a bullish trend.
After the price sets new highs, it retraces to a rising trend line.
Once the trend line is reached, trend-following movements initiate.

What I like about these 3 setups is the fact that they work on every market and on every time frame. So no matter what you trade and what is your trading style, you can apply them for making nice profits.

Good luck!