'SWING' your losses into profits with 'SWING' trading strategiesIn prior posts, we have covered some great teachings about the market and,
in this post, we will elaborately cover the swing trading strategies. Let's start !!
->Definition of swing trading -: Swing trading is generally referred to as a trade carried out for a short time. Swing traders do not wait
till the price action opposes their direction, they are known for their prior moves.
They are good at identifying the shifts in market trends with the help of various techniques which are explained throughout this idea.
Swing trading strategies include the use of Fibonacci, Bollinger Bands, Channel Trading, Moving Average, MACD crossover, and better
understanding of chart patterns like Head & Shoulder, Flag, and Triangle Patterns.
We will discuss chart patterns, later on, now let's focus on the indicator strategies.
- >Swing trading strategies -:
->Fibonacci Retracement: The stock price tends to retrace, and swing traders use this retracement as an opportunity to enter a trend.
The retracement levels could be identified using Fibonacci Retracement, all you need is to identify the prior trend and if the price retraces to the 0.618 level and
again resumes the trend jump on it and ride the position till it reaches 0.236 level.
->Bollinger Bands : Most probably, the stock price tries to move in the Bollinger band, which is used by swing traders to initiate and terminate their position.
Firstly you need to identify the major trend, let's suppose it's bearish than when the price reaches the upper bound and there is a formation of a bearish candle
you could initiate a short position also when a bearish candle is formed at the median, there also you can initiate a short position.
->Channel Trading: Sometimes, stock price trades in a channel now this channel is used by swing traders i.e. when the trend is bullish they try to take long
position at the lower range of channel and book partial profits on median and wait for the price to reach the upper end.
->Moving Average: Here traders identify the major trend and take position according to it, with help of crossovers they generally prefer 10DEMA crosses 20DEMA.
->MACD : This is a simple strategy where the trades are initiated when there is MACD crossover but the cross should correlate with the trend.
My Observation-: These strategies could be more accurate if used to trade with the trend, i.e. if the stock is in an uptrend only take positions for a positive signal and just avoid negative signals.
Another basic strategy is to take a position when a script moves above the swing high or below the swing low, here the only thing to ponder is to manage your risk. Don't take over positions understand your risk appetite then take positions.
Educationalposts
Reversal from Strong support zone in Divis labReversal is showing at very strong support level . in the current market condition, diagnostic sector showing good strength . divis level is one of them.
initial confirmation shown on my indicator and price action is also supporting .
initial immediate target can be 3900.
Always follow risk to reward ratio, this is the only method for survival in the market.
view is educational not any type of recommendation.
Reversal in Metropolis healthcare systemReversal in the chart from lower level is occurring. volume in the charts are showing strength.
others diagnostic companies charts are showing start of momentum which are DR lal path, Krsna Diagonstic but i prefer Metropolis.
Nice thing in the chart is that there is clear Stop loss and target price. At this price very good risk to reward ratio.
view is for Education not any type of recommendation.
Make Money in " AMBUJA CEMENT" in medium term Ambuja chart is seems extremely good as stock Price now above high volume area that was due to Adani deal. Good thing is that price has taken sufficient time for consolidation. when the monsoon season is over again cement stock will do well.
view is purely educational Purpose.
Thanks to the greatest teacher 'THE MARKET' !!!This publication is dedicated to thanking one of the greatest and strict teacher the ‘Stock Market’.
The lessons of the market not only help one to succeed in the stock market but also helps throughout life.
This 5th September i.e. Teacher’s day let’s have a detailed look at 5 Great Learnings of Stock Market and thank her for these
life-awakening learnings.
-> Discipline: The most important teaching in markets is discipline. As the wording of Jim Rohn states “Discipline is the bridge between goals and accomplishment” stock market develops that bridge.
The market has its way of teaching and punishing, I think all of us had witnessed its punishment whether in form of not keeping stop loss or not following your trade system.
Discipline plays a vital role in an individual’s life. As said by Horace “Rule your mind or it will rule you. ”The disciplined person has the power to rule his mind whereas others lack this ability.
-> Patience: Another gem cultivated by markets in our personality and harvested by us throughout life. One of the familiar names of our school time Benjamin Franklin says “He that can have patience can have what he will.” market first teaches this gem to us then offer us what we wish.
We all have at least once missed taking the real profit by not waiting till the target is achieved but leaving the trade in midway though it was moving in our direction the reason is we lack patience and the market gives profit only to eligible ones so, either you be eligible or market will make you fit for it by its own way.
-> Ability to conquer 3 gateways of hell: According to ‘The Bhagavad Gita’ there are 3 gateways to hell i.e. Lust, Greed, and Anger.
The market helps its students in conquering those strong emotions. The beginner in the stock market has a strong lust for making money very quickly and greed for making lots of money without that kind of effort and when he fails in his motive anger gets born in his personality from where degradation or hell starts.
Those few people who still have not left the hands of the market get the knowledge to conquer those emotions throughout their journey in markets.
-> Faith in yourself: One of the famous quotes by Ralph Waldo Emerson is “The best lightning rod for your protection is your own spine.” market strengthen that spine so that we as its student can withstand any kind of storm in our life.
Before taking any trade based on your analysis requires self-belief on the early days people hesitate but later they rely on their analysis because the market has taught them self-belief.
-> Crush your arrogance: Market is popular in crushing the arrogant guy along with this removing any trace of arrogance in his personality. The famous wording says “Close some doors today. Not because of pride, incapacity, or arrogance, but simply because they lead you nowhere.” market as a kind teacher keep a keen eye on her student for arrogance as she knows that as soon as arrogance arises person starts his fall.
All of us had witnessed that whenever we start thinking that we have mastered markets and try to neglect discipline market slaps us badly to awaken us that we are still newbies and still had to learn a lot.
According to me, these 5 are the most valuable learnings of markets but if you have any learning of market much valuable in your life please mention in comments.
Also, comment which subjects teacher in your school life is as strict as the stock market, for me its 2nd language(Hindi) teacher.
Finally great thanks to 'The Market' for these great teachings.
The stock market gives success only to eligible ones so, either you be eligible or the market will make you fit for it in its own way.