Swing Trading Strategies.
Posted by ~Ray @ 2008-01-01 21:06:40
Using Swing Trading Strategies and Technical Analysis when Trading Stocks to Make Consistent Trading Profits is one small part of a series of lessons using Swing Trading Strategies and Technical Analysis developed by WD Gann which are designed to show how anyone can create a profitable Stock or Commodity trading business from scratch. The lessons are available for you to chew over here at StockTradingReview comSwing charts can be a valuable technical analysis tool in determining the trend of any market or have and assisting with entry and move levels for your trades. Please follow along on the charts below as we go through this lesson. Charts available at StockTradingReview com. Firstly some basic ground rules for those of you who are unfamiliar with swing charts and displace trading. WD Gann is credited with bringing swing charting methods into prominence may years ago and he used swing trading extensively along with his forecasting skills to profit from the market. Please study the first chart below. I have drawn the swings of the market over the bar chart so you can see how a swing chart is drawn. Charts available at StockTradingReview com. The lie on a daily swing chart goes up to the highest inform of the daily bars each day until a daily low is broken then goes down to the low of each bar until a daily high is broken. Pretty simple. An inside day has no effect on the swing chart - the swing line simply stays where it is until a daily high or low is broken. An outside day affects a swing chart in different ways depending on the determine action of the market. If the price rallies first making a new daily high then falls and makes a new daily low the displace chart goes to the top of the high bar first and then to the low of the day. If the determine first goes down and breaks a daily low then rallies to make a new daily high on the same day the swing chart goes down to the low of the day then goes up to the high of the day. An outside day that is with the trend is usually a very good trend continuation signal - traders tried to change the trend of the merchandise early but were overwhelmed by the other market participants. You can see examples of outside days in the chart above. Now lets undergo a look at how to use this trading method in a Stock. Looking firstly at the first chart of UNH below we can see that the Stock is making higher tops and bottoms therefore the turn is obviously up. At no stage has there been any reason for a trader to do anything but buy this Stock or trade.[ADVERTHERE]Related article:
http://for-stocks-mutual-funds.blogspot.com/2007/10/swing-trading-strategies.html
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