Stochastic, MACD, Bollinger Bands Plus Day And Swing Traders

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Edge Trading

Edge Trading

To avoid being cooked like a crab that jumps into the boiling pot
thinking that it is a lake or river, a technical trader ought to use the edge trading method.

Risk averse, conservative, prudent and intelligent
technical 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.

Technical traders who are becoming more composed and intelligent are very selective and rely on the edge trading strategies.  When, an online trader switches to the edge trading
method, trading losses begin to decrease.

Who Is An Edge Trader

Most reversal traders are often trading on the edge.  
Convergent signal traders use edge trading approach.
Hot spot trading technical traders also apply the edge trading method.
Stochastic, RSI, CCI, overbought, oversold and divergence traders apply the edge trading strategy.

Market geometry and Elliott wave traders that are trying to determine the end of an impulse or corrective wave often rely on the edge trading.  A breakout trader loves to trade on the edge of a trend line after a retest on both side of the trend line.

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 Edge

To 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 improving
both the market timing and risks management.  

A technical trader that is using a trading system ought to use it or take trading signals on the edge
Now check out this web page to understand more about how to trade on the edge or apply the edge trading method.

Conclusion

The edge trading is a prudent but also intelligent trading method that helps one to minimize risks and find better risk-reward ratio high probability trades on the edge.  Naturally, professional traders always trade on the edge, but ordinary traders adventure all over the place in the murky waters of the financial markets.

I highly recommend the edge trading to all day and swing traders because it will help to reduce trading losses.
Even traders who can trade fairly well sometimes do let themselves down just because they are not using the
edge trading strategy.  The time has come to start trading on the edge.

As always, it is a pleasure for me to write this article, and I hope it has been useful to you.  If that is true, feel free to share it on the social media.  Thank you for visiting our website today.


This article is written by George Beaulieu.