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
- 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.
- 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.
- 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.
- Divide the position into three parts for gradual exits:
- 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.
- Earnings Risk:
- Close the entire position before the company’s earnings report to avoid volatility risk.
- Disclaimer:
- This strategy is for educational purposes only and should not be considered financial advice. Always conduct your own analysis before entering a trade.
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