03/10/2022
Momentum
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Trading based on news releases or finding strong trending moves supported by high volume.
One type of momentum trader will buy on news releases and ride a trend until it exhibits signs of reversal.
Another type will fade the price surge. Here, the price target is when volume begins to decrease.
Daily Pivots
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This strategy involves profiting from a stock's daily volatility. You attempt to buy at the low of the day and sell at the high of the day.
Here, the price target is simply at the next sign of a reversal.
Fading
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Fading involves shorting stocks after rapid moves upward. This is based on the assumption that (a) they are overbought, (b) early buyers are ready to take profits, and, (c) existing buyers may be scared away. Although risky, this strategy can be extremely rewarding.
Here, the price target is when buyers begin stepping in again.
Scalping
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Scalping is one of the most popular strategies. It involves selling almost immediately after a trade becomes profitable. The price target is whatever figure means that you'll make money on the trade.
