Swing trading strategy.
Catch the wave.
Catch the wave.
About
This swing trading strategy focuses on catching "one move" in a trending market (like a surfer trying to catch the wave). The idea here is to enter after the pullback has ended when the trend is likely to continue. However… This doesn’t work for all types of trends.
Instead, you want to trade trends that have a deeper pullback because there’s more "meat" towards the upside. As a guideline, you want to see a pullback at least towards the 50-period moving average (MA) or deeper.
Now, let’s learn how to catch the wave with this swing trading strategy…
Instead, you want to trade trends that have a deeper pullback because there’s more "meat" towards the upside. As a guideline, you want to see a pullback at least towards the 50-period moving average (MA) or deeper.
Now, let’s learn how to catch the wave with this swing trading strategy…
HOW IT WORKS
1
Identify a trend that respects the 50MA.
2
If the market approaches the moving average, then wait for a bullish price rejection.
3
If there's a bullish price rejection, then go long on next candle.
4
Set your stop loss 1 ATR below the low and take benefits just before the swing high.
NOW YOU MIGHT BE WONDERING: "BUT WHY THE 50-PERIOD MOVING AVERAGE?"
WE GO WITH THE 50MA BECAUSE IT’S WATCHED BY TRADERS AROUND THE WORLD SO THAT COULD LEAD TO A SELF-FULFILLING PROPHECY. AND USUALLY, THE 50MA COINCIDES WITH PREVIOUS RESISTANCE TURNED SUPPORT WHICH MAKES IT MORE SIGNIFICANT. NOW, IT DOESN’T MEAN YOU CAN’T USE 55, 67, 89, OR WHATEVER MOVING AVERAGE YOU CHOOSE BECAUSE THE CONCEPT IS WHAT MATTERS.
WE GO WITH THE 50MA BECAUSE IT’S WATCHED BY TRADERS AROUND THE WORLD SO THAT COULD LEAD TO A SELF-FULFILLING PROPHECY. AND USUALLY, THE 50MA COINCIDES WITH PREVIOUS RESISTANCE TURNED SUPPORT WHICH MAKES IT MORE SIGNIFICANT. NOW, IT DOESN’T MEAN YOU CAN’T USE 55, 67, 89, OR WHATEVER MOVING AVERAGE YOU CHOOSE BECAUSE THE CONCEPT IS WHAT MATTERS.
