Swing Trading

Discussion in 'Strategy Development' started by EvanDM, Feb 22, 2007.

  1. EvanDM


    Sorry if this was posted somewhere else, but I went through the forms for a bought an hour and it couldn’t find a simple answer. You will be able to tell I am obviously inexperienced from the below questions.

    I am not asking for anybody to give up their strategy, just a simple question. When swing trading, what do you guys use as indicators for your entry and exit points? 10 day SMA, 20 day SMA, 30 day EMA or 50 day EMA price crossover? I am paper trading now and looking for a sound strategy to lower risk and maximize profit.

    Another question, when tracking a stock for a long period of time when do you raise or lower your support and resistance line to adjust for the price of the stock? Is there any technical indicators?

    Any advice welcome.
  2. for support and resistance you can use the high/low of the previous day, and week... as well as the low/high for today.

    you can also calculate the pivot points for the stock based on the previous day high low open and close.
  3. lindq


    I suggest you get a copy of "Trading for a Living" by Elder. It will be a good introduction to thinking in multiple timeframes, which you will need to do.

    For example, indicators are seldom used alone to define entries. Think of them as guidelines for set ups. Use indicators on daily charts for set ups, then look to what happens intraday.

    And if you were to ask 100 successful "swing traders" how they define set ups and entries, you would be likely to get 100 different answers. There are infinite possibilities.

    Good luck.