My swing trading strategy

Please feel free to ask questions/comment.



I am a part-time swing trader. This means that I buy and hold a stock for 1-14 days. This also means that I place three or fewer trades during a day.

I look for stocks that have changed their trend, or have broken away from a chart pattern (Eg: Wedge, triangle, etc.). A trend change occurs when the 10 sma crosses through the 30 ema. This crossover usually occurs after a recent breakout. I look for breakouts from chart patterns that have gone 5% past the trend line. Once this happens, I trade the first pullback.

Once the 10 sma crosses over the 30 ema, I will look for the first pullback. Buying the first pullback is the most reliable type of entry into a stock.

This pullback usually comes close to touching the 20 sma. After it comes close to (or actually touches) the 20 sma, I look for a good “spring day”. I will buy on the “Spring Day” (The day that ends a pullback) when it is 1-10 cents above the previous day’s high.

I will watch my stock for the days to come. If my stock moves up, I will use a trailing stop to ensure profits. If my initial target is met, I will sell half of my positions, and move my stop up.

As my stock’s price continues to rise, I will trail my stop to the previous day’s low. I will move my stops at the end of each trading day.

During off days, I will create a watchlist for potential longs, and potential shorts for the upcoming week.