The first part of his strategy? His approach to support & resistance:
"Major support and resistance levels are used for both long term and short term trading. These are areas of high value and importance. This means that price has identified Identifying Major Support & Resistance levels. Price will often be attracted and repelled by these levels. Hence where we can pick up the terms support and resistance. These are used as a mass psychology tool. Many traders see these levels and expect them to be significant.
These significant levels are used by many traders, meaning that if many traders expect something big to happen at that level typically the herd activity kicks off and something does happen. If the majority of traders expect a support level to hold many will start buying in at these levels and so the asset pair encounters buyers pushing the price up of the asset and this level of support works. Often these levels will coincide with an overbought or over sold condition that can be seen using the Relative Strength Indicator. Above 70 & below 30 is often an extreme price move. This is often found that price tends to move to these major levels and then stops because it reaches major support or resistance levels.
Now this strategy is mostly rules based and strictly following them. I frequently combine my trading with my fundamental analysis, which is separate from this technical guide of trading. The same is for a level of resistance these levels work exactly as support but instead of price going up it will fall."
Next up? What indicators is he using?
1. 200 EMA ( Exponential Moving Average)
2. 200 SMA ( Simple Moving Average)
3. 100 EMA ( Exponential Moving Average)
4. 50 EMA ( Exponential Moving Average)
5. 20 EMA ( Exponential Moving Average)
6. RSI 7& 14 ( Relative Strength Index)
7. Price Action!
But there's more... What about fundamentals? Risk Management?
In addition to his technicals, Edi uses a unique way of identifying and analyzing incoming fundamental data, which can create some really solid trading opportunities. Inside of the A1 Trading community, Edi (and the rest of our analysts) has shared his entire strategy in detail for members to learn from and review.
How did Edi know when to Exit?
One key variable is knowing WHEN to close a trade. Edi brilliantly closed out this trade before it headed back the other way, and shared the full trade breakdown with members inside the group.
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