Jul 31, 4 Example Trades For Swing Traders

How do you tell when the market will offer nice pullbacks or when it will trade off of momentum? The easiest way to check this is to look at the ADX indicator.

Readings below 25 indicate that the market will offer nice pullbacks to initiate swing trades. Readings above 25 indicate a strong trend - pullbacks will be shallow or nonexistent.

As long as the ADX indicator is above 25 and sloping up, the market will continue to trade off of momentum. Momentum is lost when it begins to slope down.

It's not a perfect technical indicator (none are) but it does a good job of telling you the current strength of the trend.

Not sure if you already know about this but EWI has their 2013 State of the Global Markets Report available. It's a worthy read - and it's free.

Download it here

I'm not sure how long it will be available so grab it while you can!

Take a look at the following chart:

H&R Block (HRB) recently broke out decisively (arrow) through resistance (highlighted). This stock is now in first pullback mode and could create a nice trading opportunity if it prints a reversal candle.

The one problem that I see is that this stock is in a mature trend which could lead to failure patterns.

Still, this is definitely one to keep an eye on when the market resumes trading.

I know from experience that a stock should move in your favor within a day or two after your entry. If it doesn't then it will likely go against you. Here is a recent trade that I had:

This stock pulled back and formed a bottoming tail and then an engulfing candlestick pattern. So I bought the stock. Then I waited...and waited...and the stock went nowhere. So I dumped it after a couple of days.

The first question that should come to your mind when this happens is:

Where are the buyers?

They aren't there.

Time to get out.

Dec 23, Support and Resistance for Swing Traders (Updated)

How do you tell when the market will offer nice pullbacks or when it will trade off of momentum? The easiest way to check this is to look at the ADX indicator.

Readings below 25 indicate that the market will offer nice pullbacks to initiate swing trades. Readings above 25 indicate a strong trend - pullbacks will be shallow or nonexistent.

As long as the ADX indicator is above 25 and sloping up, the market will continue to trade off of momentum. Momentum is lost when it begins to slope down.

It's not a perfect technical indicator (none are) but it does a good job of telling you the current strength of the trend.

Not sure if you already know about this but EWI has their 2013 State of the Global Markets Report available. It's a worthy read - and it's free.

Download it here

I'm not sure how long it will be available so grab it while you can!

Take a look at the following chart:

H&R Block (HRB) recently broke out decisively (arrow) through resistance (highlighted). This stock is now in first pullback mode and could create a nice trading opportunity if it prints a reversal candle.

The one problem that I see is that this stock is in a mature trend which could lead to failure patterns.

Still, this is definitely one to keep an eye on when the market resumes trading.

I know from experience that a stock should move in your favor within a day or two after your entry. If it doesn't then it will likely go against you. Here is a recent trade that I had:

This stock pulled back and formed a bottoming tail and then an engulfing candlestick pattern. So I bought the stock. Then I waited...and waited...and the stock went nowhere. So I dumped it after a couple of days.

The first question that should come to your mind when this happens is:

Where are the buyers?

They aren't there.

Time to get out.

On November 4, the two most important deadlines for Swing Traders

How can you tell when the market will offer pleasant retreats or when it is negotiated out of momentum? The best way to check is to look at the ADX indicator.

Readings below 25 indicate that the market will offer nice declines to initiate the swing trades. Readings above 25 indicates a strong trend - setbacks will be low, or nonexistent.

As long as the ADX indicator is greater at 25 and sloping upwards, the market will continue to trade off the coast of momentum. Momentum is lost when it starts to go in lowering.

It is not a perfect technical indicator (are), but it does a good job of you say the current strength of the trend.

You do not know if you already know about this but the EWI has their 2013 report state of markets available. It's a worthy read - and it's free.

Download here

I do not know how long it will be available then take it while you can!

Take a look at the following table:

Block H & R (HRB) recently broke out (arrow) firmly through the resistance (highlighted). This stock is now in mode first recoil and could create a great trading opportunity if it prints a reversal candle.

The only problem I see is that this stock is in a mature trend that could lead to failure mode.

However, it is certainly one to keep an eye, when the market resumes its trade.

I know from experience that a stock has to move in your favor in a day or two after your entry. If not then it will probably go against you. Here is a recent job that I had:

This stock has pulled back and formed a tail at bottom, then an engulfing candlestick pattern. So, I bought the stock. Then I waited... and waited... and the stock has gone nowhere. If I dump a few days.

The first question that comes to mind when this occurs is:

Where are the buyers?

They are not there.

Time to get out.