There are several trading patterns that traders use to analyze the market and make informed decisions. The most prominent of these patterns include:
Day Trading: Opening and closing trades on the same day to capitalize on short-term price movements.
Swing Trading: It involves holding positions for a few days or weeks to capitalize on price fluctuations.
Position Trading: This is the practice of holding positions for an extended period of time (weeks to months) based on major market trends.
Algorithmic Trading: Uses algorithms and software to automatically execute trades based on specific criteria.