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The Only 5 Trading Strategies You Need for Every Market

You don’t need a hundred indicators or a dozen strategies to succeed in trading. In fact, keeping things simple can give you an edge. The best traders in the world don’t chase every opportunity—they master a few setups and execute them flawlessly. If you want to trade any market—forex, stocks, crypto, commodities—these are the only five strategies you really need. Learn them, practice them, and watch your consistency grow.

1. Buying Pullbacks in an Uptrend

This is a classic—and for good reason. In an uptrend, price moves higher in waves, with temporary dips along the way. Those dips are your golden opportunity. Instead of chasing a price that’s already run up, wait for it to pull back to a key level (like a moving average or trendline). When buyers step back in, you ride the next leg higher—with reduced risk and much better timing. Combine this with bullish candlestick patterns or momentum confirmation on lower timeframes, and you’ve got one of the highest-probability entries out there. A perfect example is gold pulling back to its 20-period SMA and forming a strong Marubozu continuation candle—textbook price action for the next leg higher.

2. Shorting Rallies in a Downtrend

This is the reverse of strategy #1. In bear markets, prices decline in waves—drop, bounce, and drop again. These rallies are often short-lived, as they present opportunities for sellers to re-enter or add to their positions. That’s where the edge lies. The next time you see a weak rally within a clear downtrend, don’t hesitate to take the short. Look for signs of rejection near resistance, fading momentum, or bearish reversal candles—and be sure to keep your stop tight. You're trading with the trend, and in bear markets, those moves can unfold quickly and decisively.

3. Buying Breakouts in Bull Markets

Sometimes the best trades come when price doesn’t pull back—when it blasts through a resistance level with strong volume and momentum. In trending bull markets, breakouts can signal a fresh wave of buying as new traders pile in. The key here is confirmation. Not all breakouts are created equal—watch for clean price action, strong candles, and follow-through volume. Whether it's a stock hitting a 52-week high or gold breaking above a multi-month range, breakouts in bullish environments can lead to explosive moves.

4. Shorting Range Breakdowns in Bear Markets

Bear markets love to trap traders in false hope. Price goes sideways, builds a base, and then… cracks. When a support level finally gives way in a downtrend, the breakdown can trigger panic selling or force longs to exit. That’s your moment. Take the USD/JPY chart as an example: after breaking trendline support, the pair rebounded but stalled at resistance. Short the breakdown with confirmation—such as volume spikes or retests—and let the momentum carry the trade. It’s clean, it’s decisive, and it works across all asset classes.

5. Buying Support and Shorting Resistance in Rangebound Markets

Not every market trends. In fact, much of the time, markets chop sideways. That’s when it pays to be a “range trader.” Identify clear support and resistance levels, and trade the boundaries. Buy near support with a stop just below. Sell or short near resistance with a stop just above. Use oscillators like RSI or Stochastics for confirmation, and remember—you’re not looking for a breakout, just a bounce. These are quick, controlled trades with tight stops and decent reward.

It’s Not Just the Setup—It’s the Risk Management

While each of these strategies can be very effective, the difference between success and failure doesn’t lie in the strategy—it lies in your risk-to-reward ratio and discipline at entry. Focus on setups where the potential reward is at least 2x your risk, and never enter a trade without a clear exit plan. If you reside outside of the US, you can amplify your trading with Axi Select’s capital allocation program, completely free. That means you keep control of your own money and trade with theirs—without the pressure of upfront fees.

Master these five strategies and you’ll be ready for every kind of market.

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