$BNB $BTC $ETH Short-term trading strategies profit from price fluctuations by buying and selling quickly. Here are some common and effective strategies:
### 1. Technical analysis
#### **Trend tracking**
- **Strategy**: Use moving averages (MA) to identify market trends. When the price breaks through a certain moving average, go long or short.
- **Tools**: MA, EMA.
#### **Support and resistance**
- **Strategy**: Buy when the price approaches support and sell when it approaches resistance.
- **Tools**: Horizontal support and resistance lines, trend lines.
#### **Momentum trading**
- **Strategy**: Trade based on market momentum, buy when momentum is strong and sell when momentum weakens.
- **Tools**: RSI, momentum indicator.
### 2. Intraday trading
#### **Scalping**
- **Strategy**: Capture small price fluctuations by entering and exiting the market quickly, and make multiple trades in a day.
- **Tools**: 1-minute, 5-minute charts.
#### **Range trading**
- **Strategy**: Buy low and sell high when the price fluctuates in a certain range.
- **Tools**: Bollinger bands, candlestick charts.
### 3. Reverse trading
#### **Reversal trading**
- **Strategy**: Predict the reversal of prices when they reach extreme levels and trade.
- **Tools**: RSI, MACD.
### 4. High-frequency trading
- **Strategy**: Use algorithms to make a large number of transactions in a very short period of time to capture small market fluctuations.
- **Tools**: Algorithmic trading system, API interface.
### 5. News trading
- **Strategy**: Trade based on major news events and react quickly to predict market trends.
- **Tools**: Real-time news sources, social media monitoring tools.
### Trading discipline and risk management
- **Stop loss setting**: Set a stop loss for each transaction to control losses.
- **Take profit setting**: Set a target profit and automatically close the position.
- **Position management**: Control the risk of a single transaction and avoid excessive investment.
- **Continuous exploration**: Continuously optimize the strategy and adjust it according to market changes.
#### **Support and resistance strategy example**
1. **Determine support and resistance levels**: Mark obvious support and resistance levels on the daily or 4-hour chart.
2. **Entry point**: Watch for buy signals at support levels and sell signals at resistance levels.
3. **Stop loss**: Set below support or above resistance.
4. **Take profit**: set based on a 1:2 risk-reward ratio.