The Complete Swing Trading Strategy PDF is a guide for discretionary swing traders, encouraging personalization of its concepts. It begins with weekly preparation on Sundays, assessing market trends using moving averages (10 SMA, 30 EMA) on the S&P 500 to determine long or short biases. Traders scan for stocks in the Traders Action Zone (TAZ)—between 10 SMA and 30 EMA—targeting Stage 2 or 4 stocks with strong trends and support/resistance levels.
Entry relies on swing points and candlestick patterns, with Williams %R signaling overbought/oversold conditions. Exits use stop losses below support and trailing stops for profits. Money management caps risk at $2 %$ per trade, with position sizing based on stop distance. The “2 for 1” strategy takes partial profits to offset losses, emphasizing discipline and emotional control as key to success.
Excerpts
The Complete Swing Trading Strategy
Now lets put everything together into a swing trading strategy. This trading plan is for discretionary
traders. Your success will depend on how well you use your discretion!
After you understand the concepts, then modify this trading strategy into a strategy of your own.
Feel free to change things around a little. Maybe you want to add some other kind of technical
indicator. Or, maybe you would like to incorporate some fundamentals into the mix. Whatever you
decide, make it your own.
You will be far more successful with a trading strategy that YOU design, rather than just blindly
following someone else’s plan! Ok, lets get started with our trading strategy. We will begin by
preparing for the week ahead.
Preparing For The Trading Week
On Sunday mornings, I get up early, grab a cup of coffee and head to the computer to get ready
for the trading week ahead. I am wanting to know what types of trades I will be focusing on for the
upcoming week (long or short). This part is easy. Using our market timing strategy, we look at
the moving averages to determine if we will be biased to the long or short side of the market.
Staying in cash and out of the market IS a strategy. You do not have to trade!
Once we find out what type of trading we will be doing, it’s a good idea to get a feel for what will
likely affect the market for the week ahead. These are some of the things I look at:
• Economic Calendar
• Industry Groups
• Charts
I look at the economic calendar to see what types of reports are coming out that could influence
the market. I also look at charts for all the major industry groups to see which ones are strong,
which are weak, and which ones have potential to make major moves.
Have a notebook handy next to your computer to jot down ideas about the upcoming week. When
you are trading you will forget about your weekend research! Having you notes next to you will
come in handy.
Scanning For Stocks
Now we’ll run our scans to find some potential trades. Remember that we are looking for stocks
that have pulled back into the Swing Traders Action Zone.
Specifically, we are looking for stocks that:
• are in Stage 2 or Stage 4
• are in strong trends
• have relative strength or weakness
• are at a support or resistance level
Sift through your scan results and find the ones that show these specific characteristics. Add these
to your watch list.