Popular Strategies
This page covers strategies that are popular among Lune Trading users and are easy to understand. These strategies are designed to help users get the most out of Lune Trading's Premium Indicators and provide an introduction to fundamental trading concepts like confluence and trends.
EK Cloud is one of the most powerful features included in Lune Algo Premium. It is great for following trends, and also acts as a support/resistance. For the following strategy, we will be using Lune Algo Premium with Confirmation Signals enabled, alongside the EK Clouds.
Example of EK Cloud Strategy
- At location 1 we can see a buy signal. While this may look like a great trade EK Clouds is telling us that the trend is still bearish, additionally, the EK Cloud is functioning as a resistant level. All of these variables imply that we may not want to take this signal.
- At Location 2 we see a sell signal. The price is below the EK Cloud and the EK Cloud is still red both of these are good indications of a great setup and a high probability trade.
- At Location 3 we see another buy signal, Much like the previous false signal in Location 2 the EK Cloud remains red and is functioning as a resistance level. Additionally, this trade only has a confidence level of 4. All of these variables imply that we may not want to take this signal.
- At Location 4 we see a sell signal that is nearly identical to the setup in Location 4. The price is once again below the EK Cloud and the EK Cloud is still red both of these are good indications of a great setup and a high probability trade.
Lune Algo Premium offers two signal types: Confirmation and Contrarian. Confirmation Signals are used to follow the trend while Contrarian Signals are used to trade against the trend. The goal of Contrarian Traders is to trade against the trend. This is a super simple strategy and is one of my personal favorites because of how under-utilized it is. For the following strategy, we will be using Lune Algo Premium with Contrarian Signals enabled.
Example of The Contrarian Strategy
- At Location 1 we can see a buy signal with the Lune Confidence level of 0. We will not be taking this trade because the algorithm is not confident in it.
- At Location 2 we can see a sell signal with the Lune Confidence level of 0. We will not be taking this trade because the algorithm is not confident in it.
- At Location 3 we can see a sell signal with the Lune Confidence level of 1. We will not be taking this trade because the algorithm is not confident in it.
- At Location 4 we can see a sell signal with the Lune Confidence level of 3. We will be taking the trade because the algorithm believes that it is a high-probability trade! With this strategy the higher the confidence level better. I am personally looking for a level of 3 and above.
- At Location 5 we can see a buy signal with the Lune Confidence level of 0. We will not be taking this trade because the algorithm is not confident in it.
- At Location 6 we can see a buy signal with the Lune Confidence level of 0. We will not be taking this trade because the algorithm is not confident in it.
- At Location 7 we can see a sell signal with the Lune Confidence level of 1. We will not be taking this trade because the algorithm is not confident in it.
This strategy aims at catching the tops and bottoms of the markets(aka the reversal). These can be highly lucrative trades with massive rewards (and low risk if you use tight stop losses). The best part of this strategy is that it is extremely simple. For the following strategy, we will be using Lune Algo Premium with EK Clouds, Reversal Bands, and Reversal Signals enabled.
Example of The Reversal Strategy
- At Location 1 we can see that the EK Cloud is red. This indicates that we should be prioritizing bearish trades and should not be taking bullish trades.
- At Location 2 we can see that the price is above the Reversal Bands and that Reversal Signals are being sent. This along with the fact that EK Cloud is red is all a clear indication of a great short play. As you can tell by the screenshot above, it was!
This strategy aims at utilizing smart money concepts and price action to help get you ahead, while also using the oscillator to give you additional confluence. For the following strategy, we will be using Lune Technical Analysis Premium with Advanced Lune Zones enabled and Lune Oscillator Premium with the default settings.
Example of The Lune Zones Strategy
- At Location 1 we can see that the oscillator has printed a bullish signal, This typically indicates the potential of a market reversal or change in trend.
- At Location 2 we can see that there is consolidation taking place within the Advanced Lune Zones feature. It is clear that support is being built at this level and the oscillator helps us further confirm this.