Edge TradingTo avoid being cooked like a crab that jumps into the boiling potthinking that it is a lake or river, a technical trader ought to use the edge trading method. Risk averse, conservative, prudent and intelligenttechnical traders always deploy edge trading strategies in the financial markets.
After taking all kind of useless trading signals in the wrong places, a technical trader must revert to trading on the edge. Based on the fact that in many cases, the price-action is often rising or declining from one key level to another or from
one trend line to another, it makes sense to use the edge trading strategy.
What Is Edge Trading
Edge trading consists of concentrating on the trading setups that occur on the edge of a trend line or key level. One does not have to take every trade.
In this instance, one is prioritizing high probability trade setups that are on the edge of a trend line.
Edge trading is also about trading on the edge of a dynamic trend line, critical price level, pitchfork tool, projected channel (market geometry), triangle and median line.
Advantages Of Edge Trading
The advantage of the edge trading is to control and minimize risks. A high probability trade setup that occurs on the edge offers less risks than the one that is in the middle
of nowhere. One is also more likely to find a better risk-reward ratio trade on the edge.
Note that though, I am using more the word trend line, understand that the edge trading also uses dynamic trend lines (more powerful), key levels, price targets and market geometry.Generally, a financial market trader or investor who is willing to manage risks and trade better risk-reward ratio will use the edge trading method.How To Trade On The EdgeTo trade on the edge is very simple, but one must always combine it with a multiple times frame trading strategy. As one is combining both methods, one is effectively improvingboth the market timing and risks management.
