Technical trading systems can help any individual trader make a trading decision based on clear objective and predetermined set of rules. The techniques used in technical trading systems are based on price, volume and open interest.
Technical trading systems can be broadly divided into these five types:
- Trending market trading systems
- Countertrend trading systems
- Breakout Trading Systems
- Trading range trading systems
- Hedge trading systems
A individual trader has the best chance to be a profitable trader if he or she adopts a technical trading system. Technical trading systems are the only surefire way to minimize the emotional influences that inevitably destroy nearly every trader.