Swing Trading Strategies Setup

Double Got 'Em Setup

- Stock experienced a downtrend on a daily chart.
- Price rebound. Then, no less than 8 days later, price retests the low.
- If the stock holds its low and reverse, we will buy when it trades a few cents above the high of retest day.
- Once in, initial protective stop will be establish just under low price of entry day.
- Initial profit target: prior high

Moving Average Leapfrog

- Stock experienced a uptrend on a daily chart.
- After a move up, price pulls back in an orderly fashion, to its 20-day and 50-day moving averages.
-Bonus: price culminates the day in a small range candle.
- Check the stochastic for buy signal and OBV for positive action. (Stochastic in mid range and below. OBV at least neutral)
- If tomorrow the stock opens in positive territory above its 20-day and 50-day moving averages, buy when it trades $0.05 to 0.10 over today's high.
- Once in, the initial protective stop will be establish just under low prior of entry day.
- Initial profit target: prior high/
- Risk reward ratio should be 1:3

Stealthy Sidewinder

- Stock trades in an uptrend and currently consolidates sideways in a wedge, horizontal flag or ascending triangle.
- Price pattern trades just above the 20-day MA, and ideally, above the 50-dawy MA.
- Stochastic and OBV agree.
- Buy initial position when stock begins to rise out of consolidation on healthy volume. Or buy after the stock breaks through the upside horizontal resistance line, or both.
- Place an initial stop under the edge of the wedge.
- Set profit target the reflects initial risk reward at 1:3 or better.

- Exerpts from Short-Term Trading in the New Stock Market by Toni Turner