Swing trading Strategy

sh50 · #1 11th December 2004, 09:40 AM

Following the explicit post on daytrading, this is a modest attemp on Swing trading strategy.

I am no expert and so this should be taken with a pinch of salt but the idea is to draw contributions from the real experts.

Over the past two months, I have been using a combination of ADX, MACD, Binary wave composite and any of the expert advisors ( Martin pring or Rex Tsasugi). Chakin's volatility is another which may be effective though I have not thoroughly tested yet. I have bollinger bands on the main chart though I only follow one rule-low volatility begets high volatility and vice versa. Martin pring long term momentum was suggested by Viratech

Along with the above I feel that an RSI>60 is bullish and RSI<40 v bearish generally. Otherwise one has to be flexible depending upon the previous scrip position. Stochastics can be used to finetune decisons to some extent though one is obviously better of with 30min 60min chart.

It goes without saying that charts are more important than indicators. I use two different templates- one with the above indicators and one only with price voume, volatility and RSI( both for divergences and price patterns). I use EMA 7,13,20.

For daily trading, weekly trend has to be seen and so perhaps for swing trading, people maybe using monthly charts. I don't.

One can always see whether or not its a market outpeformer using the Relative strenght comparative. This and the 3%,5%,8% guideline that are there in tradersedge newletter(I came to know recently) offer very good insights and targets.

The pundits are welcome to tear me apart.

shrees · #2 11th December 2004, 11:23 AM

Thanks Sh50.

I would do some homework based on your guidelines and get back if I have doubts.

Also hoping more of the members will come out with their personal profitable strategies. Its always nice to share good things.

Shri.

kkz59 · #3 11th December 2004, 12:23 PM

Dear Sh50

I am a bit lazy and also old to learn this technicals. I have based all my purchases on fundamentals.

If only there could be a combination of fundamentals and technicals, it would be a deadly winning combination. Technicals can advise as to whether the fundamentally sound share could be bought at particular rates as well as it is opportune time to encash the profits.

Can this forum be used to get the technical insights into fundamentally sound scrips. Can you please help with the technical analysis of the following scrips:

NESCO Limited (formerly New Standard Engineering Limited) - It ran up from 50 to 200 and has now corrected to about 140. What should be done now ?
Amarjothi Spinning Mills Limited
Lakshmi Mills Limited

Regards

Kamalesh

sh50 · #4 14th December 2004, 10:14 PM

Well the marting pring expert advisor in which I have a lot of faith shows a sell signal way back at 24/11 at which the price cut the 7SMA. It all depends on when you purchased the share. If it was an investment made long ago based on fundamentals then you should have definitely sold off. I have been told that for timing of trailing stop losses in such cases is the 30day MA or even if you take 20MA you should have exited at 173(20) or definitely at 156(30).

Going by technicals, the short and intermdediate trends are down. I don't know anything about the fundamentals of the scrip. As an investment it could go up but the immeditate prospects look bleak.

Purely on technicals its seems like a sell(even weekly signals are bearish) but the real pundits in this forum are better placed to comment.

All books recommend knowledge of technicals as well.

geominnet · #5 4th January 2005, 10:25 PM

my dear, swing trading strategy comes with one very basic question before jumping into technical jargon and that is
what kind of chart would you use to do swing trading ;- bar chart or candlestick chart
first get clear on this issue and be clear over your option to choose one over the other
the rest will be simple enough -----believe me!

arun · #6 5th January 2005, 07:13 AM

For anybody who is interested, here is a tutorial on swing trading

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