There are many trading strategies in the financial markets to maximize your profits. We will tell you about the really working strategies that can turn your $50 into a lot of capital.
The Wyckoff Method — the way to Success in the markets
The Wyckoff Method is a comprehensive approach to market analysis and trading decisions developed by legendary trader Richard Wyckoff in the early 20th century.
The method is based on the idea that chaotic movements of asset prices hide a certain logic, which can be recognized by studying the “distribution pattern”.
Look for “Accumulations Phases” and open positions, both Long and Short on any timeframe, regardless of the market situation.
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The main elements of the Wyckoff method:
- Analyzing price movements: studying price patterns such as “accumulation”, “distribution”, “breakout” and “retest”.
- Analyzing trading volumes: determining the ratio of volumes during upward and downward price movements.
- Identification of support and resistance zones: identifying price levels at which major players tend to become active, buying or selling assets.
- Use of indicators: using technical indicators such as MACD, RSI, and stochastic oscillator to confirm the signals obtained by the Wyckoff method.
Advantages of the Wyckoff method:
- Versatility. The method can be applied to trading stocks, futures, cryptocurrencies and others.
- Efficiency. The method allows you to determine the points of entry and exit from the market with a high degree of accuracy.
Smart Money — follow the big players
Smart Money strategy, also known as the “smart money” concept, is an approach to market analysis and trading decisions based on studying the actions of big players (institutional investors).
It is assumed that large players, possessing significant resources and information, have an advantage in the market and can influence its movement.
By analyzing their actions, traders following the Smart Money strategy try to determine the direction of future market movement and make transactions in its direction. The best friend, as in many cases, is volume. If there are abnormally high volumes to buy or sell, open a position. In cryptocurrencies it is much easier to track the actions of whales — many resources track the actions of major participants (who, what, and when bought or sold) because it is all “recorded” in blockchains.
Example of VTS whale accumulation during the fall. A week later — the asset has grown by more than 20%.
The basic principles of Smart Money strategy:
- The big players drive the market
- Analyzing price movements and trading volumes
- Identifying support and resistance zones
Advantages of the Smart Money strategy:
- Potentially high profits.
- Possibility to get ahead of market movements.
- Logical approach.
Remember
- Before using any strategy, you should study it thoroughly and practice it in small amounts. On MOVO you can easily hone your skills, because you can open a position with as little as $5, and using the multiplier you can multiply the trading volume and potential profit.
- There is no universal method that guarantees 100% success. Therefore, do not forget to use Stop Loss/Take Profit orders to secure your trading.
- The strategies listed above are just some of the many tools that can help you in your trading.
