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6/8/2017 What'sthebeststockswingtradingstrategy?

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What's the best stock swing trading strategy?
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strategies?
Kirubakaran Rajendran, Stock Market Algo Trader, Founder & CEO,
HowIshouldstartingainingknowledgetobeaswing
www.squareo.in
traderinindianstockmarket?Iwanttodoswing
AnsweredMar31
tradingformylongtermgoals.
I have already answered a similar question here.
Whatisthebestwaytolookforswingtrades?
Kirubakaran Rajendran's answer to What's the best stock swing trading strategy?
Whattechnicalindicators/strategiesfromswing
tradingstocksareaccuratefortradingforex?
There are many positional/swing trading strategies available publicly to trade on any
kind of markets. One such strategy is NR7. Whatisthebestwebsitetolearnaboutswingtrading?

Trading using NR7 Method: WhatisthebestswingtradingstrategyinIndia?

Arestockpickssitesthatsendyoualertsforswing
Market goes through regular contraction (i.e. daily trading range getting shorter and
tradinglegit?
shorter) and expansion (i.e. daily trading range getting bigger) cycle. Expanding range
is followed by Contraction and vice-versa. So if we can indetify the narrow range days, What'sthebeststocktradingstrategytoimplement?

then it give us a step ahead of everybody to benet from coming expansion. MoreRelatedQuestions

NR7 is term given to a day that has the daily range smallest of last 7 days including
that day. QuestionStats

How to Find NR7 day .. 42PublicFollowers

24,938Views
1) Get the High and Low data of last few period LastAskedMar8
2) Calculate the range of each day i.e. high - low) for each day
1MergedQuestion
3) Compare the range of a today and previous 6 days range (to get NR7. To get NR4 get
Edits
last 3 days range)
4) If today's range is smallest of all 7 days, then today is NR7 day..else not.

It is that simple .

This is one of my favorite setup. It gives u a chance to be ahead of trade follower /


indicator followers who will jump in the trend after you.

One of the easiest way to trade this setup will be to go long above the Day's high ofNR7
day with stop at the Day's Low of NR7 day.
Or Go short below the Day's Low of NR7 day with stop at the Day's High of NR7 day.

Observing this pattern gives day trader /swing trader a distinct edge to trade next 1 or
2 days. In many cases, NR7 break-out is found near the start of a new wave. For day
trader, this setup indicates that they can anticipate wide range days, so they should
be prepared to chase the trend and use trailing stops so that they can get maximum
from
the coming trend.

Examples:
Upvote 4 Downvote Comment

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On 02/09/2014, Auropharma had the lowest range day in last 7 days. i.e NR7 day. on
2nd, the high price was 818.3 and low price was 805.25
On next day, if the stock hits the high of 818.3, we will go long with stop loss of that
day's low which is 805.25.

You can see that stock was moved out of contraction phase and started trending from
800 to 900 within few days.

On 24/6/14, Tech Mahindra had the NR7 day with high of 2007 and low of 1987.15,
next day if the stock hits 2007 we go long with 1987.5 as stop loss. The stock zoomed in
next 3 days to Rs. 2135

This method works well with many stocks. You can check www.squareo.in for
more details.
6.1kViews49UpvotesAnswerrequestedbyVivekKumarJain

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Rayner Teo, Independent Trader. Blogs at Tradingwithrayner.com


AnsweredDec29,2015

There's no best trading strategy per se.

Upvote 4 Downvote Comment

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But there's an appropriate trading strategy for dierent market conditions (trend and
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range).

So...

Before I get into the trading strategies itself, let's learnt what are the dierent market
conditions, and then apply the appropriate trading strategy.

So, in this post youll learn:

The accumulation phase where trend traders get killed

The advance phase which trend traders love

The distribution phase where trend traders get killed, again

The declining phase where traders turn into investors

The best trading strategy for dierent market conditions allowing you to
increase your winning rate

The worst trading strategy for trend and range markets so you can avoid
losing your hard earned money

Stage 1: Accumulation phase where trend traders get killed

Accumulation usually occurs after a fall in prices, and looks like a consolidation
period.

Characteristics of accumulation phase:

It usually occurs when prices have fallen over the last 6 months or more

It can last anywhere from months to even years

It looks like long period of consolidation during a downtrend

Price is contained within a range as bulls & bears are in equilibrium

The ratio of up days to down days are pretty much equal

The 200 day moving average tends to atten out after a price decline

Price tends to whip back and forth around the 200 day moving average

Volatility tends to be low due to the lack of interest

It looks something like this:

So which is the best trading strategy to use?

A good approach to trade in an accumulation phase is to trade the range itself.

This means going long at the lows of the range, and shorting at the highs of the range.
Your stoploss should be placed beyond the end of the range.

Upvotewhat
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But:

In an accumulation phase, I would be more inclined to go short than long. Why?

Because you never know when its an accumulation phase until the fact is over. Ill
explain more on this later

Nonetheless, Ill trade along the path of least resistance, which is towards the
downside.

Disclaimer: Please do your own due diligence before risking your money. Ill not be
responsible for your wins or losses.

Heres an example of a trading strategy you can consider

If 200 EMA is attening out and price has fallen over the last 6 months, then identify the
highs/lows of the consolidation.

If price reaches the high of the range, then wait for price rejection before going short
(could be in the form of Pinbar or Engulng patterns).

If price shows rejection, then enter your trade at the next open.

If entered, then place your stoploss at the high of candle, and take prots at the nearest
swing low.

You're probably wondering:

Which trading strategy to avoid?

Do not trade in the middle of the range as it has a poor trade location. Price could
easily swing back towards the highs/lows.

This would result in you getting stopped out of your trades at support & resistance
area. It looks something like this

I know youre probably wondering:


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How do I know if its an accumulation, and not just another consolidation within a
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trend?

Something like this

The thing is

You dont know till the fact is over.

Because even the best looking accumulation in the markets, could turn out to be a
consolidation within a trend.

Until the fact is over, Ill trade along the path of least resistance, which is towards the
downside.

Stage 2: Advancing phase which trend traders love Best trading strategy is to
long the uptrend

After price breaks out of the accumulation phase, it goes into an advancing phase (an
uptrend), and consist of higher highs and lows.... (more)

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Matthew Thomas, Online Business Owner and and Stock Trader


AnsweredJun18,2015

The best swing trading strategy, in my opinion, involves a few dierent things. Most
importantly, you want to trade stocks that have high-potential, near term catalysts.
These catalysts can be possible deals, buyouts, etc. that can cause a stock to move
quite a bit
Upvote 4 in Downvote
a relatively short period of time. The best way to nd these opportunities
Comment

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is to keep a decent-sized master watch list of stocks that you can study and read about
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on a regular basis.

With swing trading, you're looking to ride momentum, whether that be to the long
side or short side, and capture 5-10%+ returns within 1-10 days or so. In order to do
this, you need to trade volatile stocks, which usually means small caps.

Most of the time these small cap stocks aren't good long-term investments, so you
need to have a dened strategy that works and be disciplined with your trades. Learn
technical analysis and buy stocks at areas of support while looking to ride them for 5-
10% wins. If support breaks, be disciplined and cut losses fast. You can always buy
shares back at a lower level of support (this example is assuming you are taking a long
position).

I recommend The Candlestick Course by Steve Nison in order to learn about key
support/resistance levels. He's known as the king of candlesticks. There are some
other indicators, such as moving averages, that can act as support/resistance as well.
The execution of a trade based on both technical analysis and high potential catalysts
increases the probability of a successful trade. How the overall market and/or sector is
behaving can have a major impact on your swing trades so these should be monitored
as well.

Overall, it takes a good amount of knowledge about the stock market, as well as the
individual company's stock you want to trade, to be a successful swing trader. I know
many people peg stock trading newsletters as scams, but I think they can be
advantageous depending on what exactly they oer and how much integrity they
have.

One I know well is Jason Bond Picks, which oers an extensive library of video
lessons, daily watch lists that include 3-5 high-potential trading ideas, a chat room
during market hours with 400+ traders looking to share trading ideas, and real-time
text/email alerts from Jason Bond himself.

I don't necessarily recommend mirroring his trade alerts, but I respect how his service
is rooted in education. He wants his clients not just to copy all of his trades exactly,
but to learn from all the educational materials he provides and eventually be able to
spot and capitalize on great trading opportunities on their own. You can learn more
about his service here if interested: What is Jason Bond Picks? Become a Protable
Trader

There are many phony "stock promotion" sites that result in pump-and-dumps, and
services that oer "picks of the month", but these are the types of newsletters you
want to avoid. You can't be successful in the markets without an education, a dened
strategy, and consistent support. My best advice would be to start building your
knowledge of the stock market in any way possible, whether that be through reading
articles, watching tutorials, subscribing to Jason Bond Picks, etc. The best part is you
can start testing strategies for free through paper trading. I recommend TD
Ameritrade's paperMoney for this: Trading Strategies | thinkorswim .

Hope this helps. It all comes down to how much you want to apply yourself to
education and learning the intricacies of the stock market. Trading stocks can be
humbling at times, but also quite rewarding. Good luck and trade green!
1.9kViews5Upvotes

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Rahul Kumar, Student/thinker


AnsweredMar29
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6/8/2017 What'sthebeststockswingtradingstrategy?Quora
The 11 Commandments of Swing Trading:
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1. Always align your trade with the overall direction of the market.

2. Go long strength. Go short weakness.

3. Always trade in harmony with the trend one time frame above the one you are
trading.

4. Never trade only on the short-term chart of the swing-trading time frame.

5. Try to enter the trade near the beginning of the trend, not near the end.

6. Always apply the rule of "multiple indicators." Do not trade on any one technical
tool or concept in isolation.

7. Keep your eye on the ball. Track a consistent group of stocks.

8. Always enter a trade with a clear trading plan, the four key elements of which are a
target, a limit, a stop loss and an add-on point.

9. Try to put the odds in your favor.

10. Be a "techno-fundamentalist" and integrate fundamentals into your technical


analysis.

11. Master the "inner game" of swing trading. Great trading is psychological as well as
technical.

An In-Depth Look at the 11 Commandments:

1. Always align your trade with the overall direction of the market.

The overall direction of the market is best measured by the S&P 500. Whenever I am
discussing trades and trends, I begin with the market's primary and intermediate
trends as measured by the S&P 500.

These trends provide the context in which every trader must make short-term trading
decisions. If you focus only on the short term, even if your trade is successful for a
limited time period, the larger trends are apt to reassert themselves. At best, your
prot potential will be limited. As such, you need to identify the longer-term trends to
make sure you go with the ow and not against it.

Over the years, I've observed that "surprises" such as news announcements, analyst
upgrades/ downgrades and earnings hits/misses almost always occur in the direction
of the larger trends. Traders should always be cognizant of where the S&P stands in
relation to its longer-period moving averages, such as the 40-, 30- and 10-week. Below
I've presented you with a historical chart of the S&P 500.

Note how except for very brief periods of time, the long-term trend (as measured by
the 30- and 40-week moving averages) and the intermediate trend (as measured by
the 10-week moving average) remains a downward one.

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2. Go long strength. Go short weakness.

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Once you know the overall trend, do not ght the tape. Look for long trades during
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periods of bullishness. Find appropriate short trades during periods of bearishness

Let's assume for a moment that the bear is on the prowl. The 40- and 10-week moving
averages are both sloping downward and the S&P is beneath both. In this scenario,
you should always look for stocks to go short, NOT to go long.

When possible incorporate Price Relative to the S&P 500 ($SPX) into your chart
analysis. This indicator will tell you how the individual stock is performing in relation
to the overall market. During bear markets you should seek out stocks whose relative
strength line is trending downward in relation to the S&P. Do the opposite during bull
markets.

3. Always trade in harmony with the trend one time frame above the one you are
trading.

Sure, we've all heard the clich- "the trend is your friend." But which trend are people
referring to? Use moving averages to be in tune with both the short- and
intermediate-term trends, even through as a swing trader you are only trading for the
short term.

Many short-term traders focus their technical analysis exclusively on the short-term
chart. However, this type of technical analysis will always end up being partial or
limited because these traders can't see the big picture

On the other hand, you should not focus exclusively on the primary trend when swing
trading. Even in a bear market, there are periods where the intermediate trend turns
positive and stocks soar. These bear market rallies can be enormously protable.
Fueled by short-covering, the S&P 500 and other major aver... (more)

Josh Maher, Author; Startup Wealth (http://amzn.to/1gIkXvm), Investor,


VC/Startup Advisor
AnsweredNov10,2013

I wouldn't say there is a "best" trading strategy, there are many dierent strategies
that work for dierent people who are trading with dierent goals, timeframes,
assets, etc.

I would recommend you jump on StockTwits to learn about some of the dierent
strategies out there. You should also sign up for TradingWithWaves to use their DSE
with whatever strategy works for you.

3.1kViews1Upvote

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Pratik Jain, Chief Editor: Tradingtuitions.com


AnsweredSep11,2016

Trend following system based on Donchian Channels works best for me. Donchian
Channel is a very powerful indicator to develop Trend following systems. It works
extremely well in Trending markets both in Intraday and Daily timeframe. Donchian
Channel is derived by calculating Highest High and Lowest Low for a pre-dened
period. Any breakout of Donchian channel upper or lower band is considered as the
starting of new trend. The Donchian channel is also useful for studying the volatility
of price. If the price is stable Donchian channel will be relatively narrow. If the price
uctuates oftenly the Donchian channel will be wider.

See the backtest report of this strategy below:

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View the strategy details and download AFL code from the below link:

AFL of the week: Donchian Channel Trend following System - Trading Tuitions

1.5kViews9Upvotes

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Nicholas Flyte, BestBrokerDeals.com


AnsweredMar17,2015

There's seldom a "best" for anything - it all depends upon individual circumstances
and nancial goals.

Entering on pullbacks in longer term trends can provide a really eective approach to
swing trading - you'll nd a full account of how to do this in my article here: Pullback
Trading Strategies |

Swing trading has long been my preferred approach - you'll sit outside all the intraday
noise of the adrenaline fueled daytraders and high frequency scalping algorithms, but
you shouldn't suer any of the massive adverse excursions and drawdowns of the
longer term trend followers, global macro funds, and buy-side institutions.

1.2kViews2Upvotes

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Lew Lew, 27 years trading stocks & options


AnsweredNov30,2016

The best strategy is to catch a falling knife stock. Just kidding ;)


Swing trading strategies can vary greatly depending on market conditions. You have
to be able to short stocks when conditions looks bad or market uncertainty persists.
You have to be able to go long stocks when others are hesitant. Swing trading can be
very protable if done right, with discipline. You may also want to seek out
professional swing trading services. I would recommend this site
NextLevelTrading.com: Stock Trading Strategies - Take Your Trading To The Next
Level .
452Views

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UpvoteLokendra
4 Downvote Comment
Poudyal, studied at National College of Computer Studies

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AnsweredDec9
AskQuestion
It's possibleAskorSearchQuora
my reply is not about the topic...but! Read Answer Notifications Sudipto

Have you guessed that before the opening of the prole and the selection of exchange
you should pay attention to to the basics?

I mean practicing the dexterity of exchanging, and even the advancing of trading
procedures!

A very skilled trader can build his personal indicators or even trade robots!

Anyway, all these rests on one basic thing that we all, without exception, have to
work: on the trading platform!

You are free to study the testimonials or approbate the most widely used platforms by
yourself.

I would advice to try them absolutely free and test by this address:

Get any live and demo trading platform for stocks, futures, options, forex

321Views

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Laeeth Isharc, former co-head of xed income in London for Citadel


Investment Group
AnsweredMay17,2015

Buy high, sell higher.

More seriously, take a look at Tom Demark's propulsion indicator for something that
is of value. I have no idea about best. It's written up in Jason Perl's book on the
Demark indicators.

1.6kViews6Upvotes

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Nihika Joshi
AnsweredFeb28

Swing trading is typically a short to intermediate term trend following system


lasting anywhere from 1 to 30 days. Traders who swing trade typically look for trend
reversals & retracements for their entry/exit points.

Like any other trading style, Swing Trading can be challenging to master. However,
having the right online broker can play a large role in your success. The Best Stock
Alerts for Swing Trading oers many resources to help you get started, like Analysis
tools, a vast Education Center and sophisticated Advanced Orders.

245Views2Upvotes

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Andrew Quin, Research Strategy Coordinator/Private Client Adviser for


Patersons one of Australia's largest stock brokers...
AnsweredJun6,2013

It is dicult for anyone to answer this because it depends on factors such as the
money management algorithm being used etc.

Try experimenting with technical reversals as entry and work from there.

http://quintrade.blogspot.com.au

1.5kViews

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Pranay Rauka, 3 years of experience in investing
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AnsweredDec27

Thanks for A2A.

Best strategy is a very subjective matter.

It depends on whether the investor is a bull or a bear .

I am personally a bull so I buy when the market is correcting and sell during the
rallies.

It's important not to be overwhelmed by either downtrend or uptrend.

Being consistent is the key to success

344Views2UpvotesAnswerrequestedbyVikashPandey

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Answersthatneedimprovement

JessiWills,ActiveOptionsTrader
AnsweredOct28,2015
I have created a website to document my journey to $1 million plus .. Check it out if
you may:
Swing trading challenge.com
Overall you need to select your stocks and know them .
And position your self in the market as best as possible and have patience.
Basicay am also trying to proof and document the possible of success
Good luck.
6Views

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TannerElijah
AnsweredDec9,2015
Give http://MyTradingSchool.com a look. They have a great swing trading course
and oer daily watch-lists, etc. Really high quality and worth the price imo.

5Views

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JegathesanDurairaj,StarTrader&Consistent60DayChallengeWinnerinZerodha
AnsweredApr22
Banknifty is the best for swing trading

3Views

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Answerscollapsedbydownvotes

MikeLewis
AnsweredMar30,2015
Seriously, give mytradingschool.com a look. Their trading course teaches you
multiple easy to follow swing trading techniques. Very high quality as well. Highly
recommend.

177Views1Upvote

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LukeStevens
AskorSearchQuora AskQuestion Read Answer Notifications Sudipto
AnsweredMar24,2015
I've actually been using a strategy I learned from http://MyTradingSchool.com and
have been able to go from 2k to roughly 3.5k in a little over a month. Pretty good
returns. Their course is very good and they provide great service. Check it out. Good if
you have another job too! Make sure to live chat with them or send them a message
asking about their course though because they'll oer you a discount. Little known
secret! Hope this helped!

230Views1Upvote

Upvote 1 Downvote Comment

ArchieMishra,livesinStockMarkets
AnsweredJul2,2014
Some of the strategies which you have to follow to be a good trader are:

1. Map the Trends


2. Spot the Trend and Go With It
3. Find the Low and High of It
Know How Far to Backtrack
5. Draw the Line
6. Follow That Average
7. Learn the Turns
8. Know the Warning Signs
9. Trend or Not a Trend?
10. Know the Conrming Signs

310Views

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RushikGandhi
AnsweredMar8
OriginallyAnswered:Whatisbestswingtradingstrategy?

Go with the Trend!!!

41Views

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Answersthatareduplicates

KirubakaranRajendran,StockMarketAlgoTrader,Founder&CEO,www.squareoff.in
AnsweredMar15
OriginallyAnswered:Whatisbestswingtradingstrategy?

I have already answered a similar question here.

Kirubakaran Rajendran's answer to What is the best positional trading strategy?

There are many positional/swing trading strategies available publicly to trade on any
kind of markets. One such strategy is NR7.

Trading using NR7 Method:

Market goes through regular contraction (i.e. daily trading range getting shorter and
shorter) and expansion (i.e. daily trading range getting bigger) cycle. Expanding range
is followed by Contraction and vice-versa. So if we can indetify the narrow range days,
then it give us a step ahead of everybody to benet from coming expansion.

NR7 is term given to a day that has the daily range smallest of last 7 days including
that day.

Upvote
How 4
to Find NR7 day..Comment
Downvote

https://www.quora.com/Whatsthebeststockswingtradingstrategy 12/15
6/8/2017 What'sthebeststockswingtradingstrategy?Quora
1) Get the High and Low data of last few period
AskorSearchQuora AskQuestion Read Answer Notifications Sudipto
2) Calculate the range of each day i.e. high - low) for each day
3) Compare the range of a today and previous 6 days range (to get NR7. To get NR4 get
last 3 days range)
4) If today's range is smallest of all 7 days, then today is NR7 day..else not.

It is that simple.

This is one of my favorite setup. It gives u a chance to be ahead of trade follower /


indicator followers who will jump in the trend after you.

One of the easiest way to trade this setup will be to go long above the Day's high ofNR7
day with stop at the Day's Low of NR7 day.
Or Go short below the Day's Low of NR7 day with stop at the Day's High of NR7 day.

Observing this pattern gives day trader /swing trader a distinct edge to trade next 1 or
2 days. In many cases, NR7 break-out is found near the start of a new wave. For day
trader, this setup indicates that they can anticipate wide range days, so they should
be prepared to chase the trend and use trailing stops so that they can get maximum
from
the coming trend.

Examples:

On 02/09/2014, Auropharma had the lowest range day in last 7 days. i.e NR7 day. on
2nd, the high price was 818.3 and low price was 805.25
On next day, if the stock hits the high of 818.3, we will go long with stop loss of that
day's low which is 805.25.

You can see that stock was moved out of contraction phase and started trending from
800 to 900 within few days.

On 24/6/14, Tech Mahindra had the NR7 day with high of 2007 and low of 1987.15,
next day if the stock hits 2007 we go long with 1987.5 as stop loss. The stock zoomed in
next 3 days to Rs. 2135

Upvote 4 Downvote Comment

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This method works well with many stocks.

5.5kViews56UpvotesAnswerrequestedbyVivekKumarJain

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Answersthathaveanunverifiedauthor

QuoraUser,HelloIamAlonzoPowell(OnlineRoboticStockTrader).Ifyouareatraderand
facinglossintrading,the...
AnsweredJul3,2014
Swing Trading Strategy

If your trade timeframe supports Swing Trading Strategies , here is the strategy we
implement for our own trades. This may not be the exact way you wish to swing
trade, but it is intended as a guide to help you determine a trading strategy that suits
not only your timeframe, but also your personality as a trader. If your timeframe is
shorter, please see the day trading strategy page for more information.

Swing Trading Strategy:

When swing trading, your position size will usually be smaller than when day trading
due to the fact that you are looking for a larger move. Your stop loss orders should be
placed wider than when day trading for this reason. Naturally, your prot targets are
farther away, so patience is a necessity.

My Swing Trading Gap Strategy:

* If a stock gaps 1-2%, enter 1/2 of the intended position sizeand monitor
the stocks behavior before adding to the position.

* If a stock gaps 2-3%, only enter 1/4 of the intended position size.

* If a stock gaps over 3%, it may be best to pass on the trade entirely, as
the risk/reward prole of the trade is no longer the same.

Swing Trading Exit Guidelines:

* If the prior days low is taken out on the breakout day (or high for
shorts), exit the trade.

* Once a trade is held overnight, place a stop-loss order no further away


than below the recent consolidation area, as a move beneath it would
signal a failure.

* Once a trade is protable by at least 10%, never give back more than
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winning trades turn into losing trades.
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* Once a trade is protable by at least 5%, move the stop-loss order to
breakeven on a closing basis.

* Partial buys and sells can be very helpful. If a stock breaks out in a
sluggish fashion, consider entering only a partial position. If a trade is
exhibiting little follow-through after the breakout, decrease the position
size.

* Always monitor the health of the overall market, and the health of your
positions. When things arent acting right, either lighten up or go to cash
entirely to preserve capital. Its easy to get back in!

These are some general guidelines for any trader with a swing trading strategy to
determine exits that t their timeframe, and are intended for educational purposes as
you seek to dene a swing trading strategy that suits your needs.

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