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.

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