Learning to Swing Trade - Exploration

S

SCF

Guest
#1
#1
Friends,
I am starting this new thread for the purpose of learning Swing Trade but not to teach Swing Trade.

Swing Trade​

A Swing Trade is one which seeks to capitalise on the short term downswings and upswings in share prices.

I need the following to Swing Trade.

Gann Swing Charts
Modified Swing Charts
Point & Figure Charts

Lastly, integration of Point & Figure and Swing Charts.

I am going to use only technical charts for swing trades. I am not concerned about fundamental issues.

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Chart based swing trading is a trend following method in that the really substantial profits are made when the market is trending up or down. There is no reason why swing trading would not be successful in a market that is in a sideways range provided there has been a significant distance between highs and lows. The point is BE PATIENT UNTIL A TREND TAKES PLACE.

The Swing Trader tries to grind out a series of small profits and losses, all the time preserving his capital, waiting for a substantial swing or a linear phase to unfold when a succession of winners can be put together. Hence, the key is BE IN THE MARKET AND PRESERVE YOUR CAPITAL.

The Swing Trader has to be in the market, whether he makes profits or losses until catches his thread of POT of PROFITS.

Beginners to swing trading donot realise this point. They loose heart for their lack of sustained success and they try to make profits by taking unjustified risks.
PATINECE IS NOT ONLY A VIRTUE, BUT A NECESSITY, AND A DIFFICULT ONE TO MASTER IN SWING TRADING.

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SPOT LINEAR PHASES - FIRST STEP INTO SWING TRADE.

A linear phase in a chart is that which resembles a straight line either upwards or downwards but not sideways. The angles of discent or ascent need to be steep. Linear phases donot always have straight line movement all the time. There may be periods when the market is rising or falling in a typical wave pattern. But linear phases involve substantial changes in price over several weeks or months, during part of which time the price movement resembles, broadly speaking, a straight line.

What will happen in a linear phase is that everything will point in the same direction. The point & figure chart, the swing chart, the moving averages. Volumes will pick up. It is at this point that the swing trader is justified in taking bigger risks.

So, my aim is to :-

1. PRESERVE CAPITAL
2. INCREASE CAPITAL MODESTLY DURING NON-LINEAR PHASES
3. MAKE A KILLING DURING LINEAR PHASES.
 
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D

darkstar

Guest
#2
#2
SCF said:
Friends,
I am starting this new thread for the purpose of learning Swing Trade but not to teach Swing Trade.

Swing Trade​

A Swing Trade is one which seeks to capitalise on the short term downswings and upswings in share prices.

I need the following to Swing Trade.

Gann Swing Charts
Modified Swing Charts
Point & Figure Charts

Lastly, integration of Point & Figure and Swing Charts.

I am going to use only technical charts for swing trades. I am not concerned about fundamental issues.

=======================================================================================================================

Chart based swing trading is a trend following method in that the really substantial profits are made when the market is trending up or down. There is no reason why swing trading would not be successful in a market that is in a sideways range provided there has been a significant distance between highs and lows. The point is BE PATIENT UNTIL A TREND TAKES PLACE.

The Swing Trader tries to grind out a series of small profits and losses, all the time preserving his capital, waiting for a substantial swing or a linear phase to unfold when a succession of winners can be put together. Hence, the key is BE IN THE MARKET AND PRESERVE YOUR CAPITAL.

The Swing Trader has to be in the market, whether he makes profits or losses until catches his thread of POT of PROFITS.

Beginners to swing trading donot realise this point. They loose heart for their lack of sustained success and they try to make profits by taking unjustified risks.
PATINECE IS NOT ONLY A VIRTUE, BUT A NECESSITY, AND A DIFFICULT ONE TO MASTER IN SWING TRADING.

@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@

SPOT LINEAR PHASES - FIRST STEP INTO SWING TRADE.

A linear phase in a chart is that which resembles a straight line either upwards or downwards but not sideways. The angles of discent or ascent need to be steep. Linear phases donot always have straight line movement all the time. There may be periods when the market is rising or falling in a typical wave pattern. But linear phases involve substantial changes in price over several weeks or months, during part of which time the price movement resembles, broadly speaking, a straight line.

What will happen in a linear phase is that everything will point in the same direction. The point & figure chart, the swing chart, the moving averages. Volumes will pick up. It is at this point that the swing trader is justified in taking bigger risks.

So, my aim is to :-

1. PRESERVE CAPITAL
2. INCREASE CAPITAL MODESTLY DURING NON-LINEAR PHASES
3. MAKE A KILLING DURING LINEAR PHASES.
Click to expand...
for swing trade i need free trading technical charts which one is free . u doing great . its easy to understand beginer trader please continue.
 
S

SCF

Guest
#4
#4
A LEGEND - WD GANN

An extract from his interview

"For the past 10 years I have devoted my entire time and attention to this speculative market. Like many others, I lost thousands of dollars and experienced the usual ups and downs incidental to the novice who entered the market without preparatory knowledge of the subject.

I soon began to realise that all successful men, whether lawyers, doctors or scientists, devoted years of time to the study and investigation of that particular pursuit or profession before attempting to make any money out of it."
Click to expand...
Just what he made out of his theory.

During a month of 25 market days, Mr.Gann made 286 transanctions in various stocks on both the long and short side of the market. 264 of these transactions resulted in profits; 22 in losses. The capital with which he operated was doubled 10 times so that at the end of the month he made 1000%.
Click to expand...
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COMPARISON OF DOW THEORY TO GANN

There are several elements to Dow Theory. But, important one is, from the price action, when a bull market turns into a bear market and vice versa.

We know that a bull market has higher highs and higher lows. It best compares to an irregular staircase. After the market has made a swing low (shown as A on the chart) and its resumes its uptrend, it is a warning sign when the next upward swing fails to make a new highs. See point B on the chart one. The price action suggests that the enthusiasm of buyers is eroding. When the subsequent downward swing breaches a previous swing low, the erosion of support from buyers is confirmed. This is a sell signal. See Point C on Chart one.

In Dow Theory these swings would be substantial swings lasting many weeks if not months.

But Dow Theory did not regard it as a sell signal if, after making new highs, the subsequent downward swing breached a previous swing low. (See Chart Two).

There would need to be a lower high, before the swing low was breached, as in the first chart. It is in this respect that Gann swing charts differ from Dow Theory. In Gann Swing Charting theory, a sell signal is generated whenever a prior swing low is breached (whether or not the last swing high was lower than the one before that). The swings in Dow theory last many weeks or months, whereas in Gann swing charting, a valid swing low may be created by a retracement lasting just 3 days.
 
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S

SCF

Guest
#7
#7
BROAD TREND CHANGES AND SWING TRADING INTERMEDIATE SWINGS

The main use of a Gann Swing chart is to identify and trade a change in trend. But Gann made it clear that the swing chart can also be used for trading the intermediate swings.

Look at the chart attached. There is a Broad Uptrend followed by a Broad downtrend. Within the uptrend there are several good buying opportunities, when the price makes swing lows at points A, B and C. Similarly, during the downtrend, there are several good selling opportunities when the price makes swing highs at points D, E, F and G.

What the swing chartist/swing trader attempts to do is to trade either the whole of the Board uptrend/downtrend or sections of it by trading the swing highs/lows or both.
 
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S

SCF

Guest
#9
#9
Friends,
Sorry for not replying to all your querries.

There are plenty of books on swing trade. Just google "Books Swing Trade".

Thanks to the friend for giving me the link to free Gann Software. Its really useful.

I REQUEST ALL FRIENDS WHO ARE FOLLOWING THIS THREAD TO COPY ALL CHARTS FOR FUTURE REFERENCE SINCE I WILL DELETE THEM FOR SPACE CONSTRAINTS.

THIS THREAD RUNS WITH FULL OF CHARTS. I REQUEST YOUR CO-OP IN THIS REGARD.

Important. Download P&F Excel sheet from this link because its going to be very useful for swing trade as we proceed further in learning.
http://www.traderji.com/technical-analysis/34059-point-figure-chart-excel-sheet.html#post371334

Thanks
Yours
SCF
 
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sankoorikal

Member
#10
#10
Friends,
Gann methods are not restricted to only swing charts more importantly it is more in focus with price ranges, time periods, trading plan, stoploss, risk management, price forecasting, angles movement, squrares, anniversary days etc.
It needs a lot of awareness which definitely requires too much sweat and handwork of years.
Sankoorikal
 
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