Continuing my series to determine what type of trader you are here is an article on trading styles.
I have a belief that trading strategies come down to two simple variations. Either:
a. A bounce off a line of support or resistance, or
b. A break of a line of support or resistance.
Some may say I’m being a tad simplistic but I offer no apology. It’s a valid definition and works very well for this exercise.
So the question is whch type of Trader are you? Someone who trades a bounce off support and resistance or someone who prefers to trade a breakout of a line of support and resistance?
Do you even know?
If you don’t then you now have a valid excuse to go back through your trades and determine:
a) which type of trade you have a preference for, and
b) which type of trade has been giving you results.
I warn you the two answers maybe different!
Personally I prefer bouncing or pivoting opportunties off a line of support or resistance. And I’m lucky that my results back that up.
Either strategy is valid, you just need to know what works for you.