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Option Chain Indicator
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BEST Profitable Trading Setup may vary for each investor or a trader. However, In this video, I have shared my BEST Profitable Trading Setup based on my experience. Before any trade, It is important to understand the types of trading setups. There are the following 4 types of trading setup
1. Continuation Trading Setup: You need to identify the trend and check whether the trend will continue or not. You should wait for the entry point based on support & resistance or the bottom or top of the channel. In this setup, you can expect low to moderate returns with high success probability and low risk.
2. Reversal Trading Setup: In this also, you need to identify the trend but the technical analysis will suggest a trend reversal. The returns are high with a low success rate and high risk.
3. Rangebound Trading setup: In this setup, the stock or index is not a particular trend. It is trading in a box. You can buy low and sell high or vice versa. This is my favorite trading setup because the success rate is high. The profit is low to moderate with low risk.
4. Breakout or breakdown: It suggests the starting of a new trend. However, you should be aware of a fake breakout. The success rate is low with high returns but the risk is also high.
If you are risk-averse investor or a trader then you may opt for a rangebound or continuation patters. For the high risk investors, the reversal and breakout trading setups are the best.