1. Trade with moving averages

Moving averages are a very popular technical indicator that can show the overall market. The two types of moving averages most commonly used by traders are the SMA and the EMA.

The 100 and 200 MA lines are two lines used by many traders to determine the overall market trend. When the MA is up and the price is above the MA, the market is in an uptrend, and vice versa if the MA is down and the price is below the MA, the market is in a downtrend.

Traders may consider buying during price drops to the Moving Average in an uptrend or selling during rallies to the Moving Average in a downtrend. As shown below:


In addition, traders can use multiple moving averages to trade their crossovers. For example, when MA 50 crosses below MA 200, traders can sell short and vice versa.

2. Use Fibonacci to find entry points

Fibonacci is one of the technical indicators that help traders identify the end of a pullback in a trend. Accordingly, the levels above the Fibonacci will be the target levels of the retracement. And when identifying the price zone where the pullback is likely to end, the trader can enter a trade there.

You see the picture below:


Popular levels on fibo used by many traders are 38.2, 50, 61.8. As shown above the price hit the right level of golden ratio 61.8 on fibo and then returned to the uptrend.

It can be seen that the levels 61.8, 50, 38.2 are very potential levels to look for trend-following trading opportunities. It allows traders to enter buying when the downtrend ends at one of the levels above the fibo and conversely selling when the uptrend ends in a downtrend.

As the image above shows, but the uptrend and downtrend ends, traders can buy low in an uptrend or sell high in a downtrend.