This strategy involves identifying and trading in the direction of established market trends. Traders typically use technical indicators such as moving averages or trend lines to confirm the direction of the trend. Entry signals are generated when the price breaks out of a consolidation phase or retracement against the prevailing trend. Stop-loss orders are placed to limit potential losses, while profit targets are set based on the magnitude of the trend. This strategy aims to capitalize on sustained price movements in the direction of the trend.

The breakout strategy focuses on trading the price movements that occur when an asset's price breaks out of a predefined range or consolidation pattern. Traders identify key support and resistance levels and wait for the price to break decisively above or below these levels. Entry signals are triggered upon confirmation of the breakout, often accompanied by increased volume or momentum. Stop-loss orders are placed to manage risk, while profit targets are set based on the range of the breakout or the height of the pattern. This strategy aims to capture significant price movements following a breakout.

The mean reversion strategy seeks to capitalize on the tendency of asset prices to revert to their historical mean or average levels after experiencing temporary deviations. Traders identify overbought or oversold conditions using technical indicators such as RSI (Relative Strength Index) or Bollinger Bands. Entry signals are generated when the price reaches extreme levels, indicating a potential reversal. Stop-loss orders are placed to limit losses in case the price continues to deviate from the mean. Profit targets are typically set at predetermined levels or when the price begins to revert towards the mean. This strategy aims to profit from short-term price corrections following periods of excessive optimism or pessimism.