Profitable Swing Trading Strategy

Learn a powerful swing trading strategy focused on bullish trends and breakout setups like ascending triangles and bull flags. With clear entry, stop-loss, and profit-taking rules, this method helps manage risk and maximize returns

TraderHR Swing Trading Strategy

1. Identify the Setup:
   • Look for stocks trending in a bullish direction for at least six months.
   • Focus on stocks consolidating in bullish chart patterns such as:
     • Bull flags
     • Ascending or symmetrical triangles
     • Rectangles with clear resistance and support zones.
2. Entry and Stop-Loss Placement:
   • Entry: Set the entry point slightly above the resistance area of the pattern.
   • Stop Loss: Place the stop loss just below the support trendline to minimize potential downside.
3. Profit Targets and Position Management:
   • Divide the position into three parts for gradual exits:
     • Target 1 (T1): Set the first target 1%-3% above the entry price.
     • Target 2 (T2): Set the second target 5%-10% above the entry price.
     • Final Position (T3): Hold the remaining 1/3 of the position with a trailing stop, allowing it to capture further upside unless the trailing stop is triggered.
4. Cancel Conditions:
   • Price Action Before Entry: If the stock hits the stop-loss level before reaching the entry point, cancel the trade.
   • Gap-Ups: If the stock opens above the entry price, cancel the trade to avoid chasing.
5. Earnings Risk:
   • Close the entire position before the company’s earnings report to avoid volatility risk.
6. Disclaimer:
   • This strategy is for educational purposes only and should not be considered financial advice. Always conduct your own analysis before entering a trade.