Being on the right side of that trend increases our odds of a successful trade, even if we are only buying the ETF for a short - term, momentum -
based swing trade.
In this educational blog post, I walk you step - by - step through the technical setup of that momentum -
based swing trade of $ JO.
Our rule -
based swing trading system is designed to profit from three different types of technical trade setups: Breakouts (Combo, Relative Strength, and Blast Off), Pullbacks, and Trend Reversals.
Overall, we like the technical setup for a momentum -
based swing trade buy entry into $ GLD, but we will patiently wait for a proper entry point first.
Although I have my own, rule -
based swing trading strategy, which has been thoroughly explained on this blog and nightly newsletter over the years, my trading system is just one of many types of successful trading methodologies out there.
Over the past two months, in which the main stock market indexes have been trending steadily lower, the benefits of consistently following a disciplined, rule -
based swing trading strategy and market timing system have again been brought to light.
Although we do not directly
base our swing trading decisions solely on the patterns of the major indices, it's always good to have the «big picture» in the back of your mind.
It was coined by Alexander Elder, a New York trader who lives off his trading profits and has written a book on rule -
based swing trading.
Not exact matches
Chi Lo of BNP Paribas says the Chinese yuan could see some
swings linked to
trade issues, but such movements would point to a more market -
based approach to the currency.
In every issue of The Wagner Daily
swing trade newsletter, we provide an easy way for subscribers to quickly determine our current overall market bias,
based on the objective rules of our system for market timing (click here for an overview of how the timing system works).
If you wish to receive the specific entry and exit prices for our best stock and ETF
trades, such as those discussed in the above video, sign up for your risk - free trial subscription of our
swing trader newsletter, The Wagner Daily (less than $ 2 per day
based on annual rate).
To be alerted of sudden changes to our market timing model (a rule -
based strategy of knowing when and how aggressive to be in the market), and to receive our best nightly stock and ETF picks, sign up now for your 30 - day risk - free subscription to our
swing trading newsletter.
If you wish to receive the specific entry and exit prices for our best stock and ETF
trades, such as those discussed in the above video, sign up for your risk - free trial subscription of our
swing trading stock newsletter, The Wagner Daily (less than $ 2 per day
based on annual rate).
Here we walk through our recent Discretionary COT signals providing examples in interest rates, forex and energy of how we use the COT report to
swing trade the commodity markets on a daily
basis.
This momentum
trade has been working out well so far, as this ETF
swing trade is presently showing an unrealized share price gain of 13.8 % (
based on our July -LSB-...]
Nevertheless, when the broad market eventually bounces, very short - term active traders may independently look to these ETFs as potential quick, momentum -
based trades (just be aware they are countertrend to the broad market, which we do not advocate for our
swing trading system).
Based on the proven technical analysis techniques of our ETF and stock
swing trading system, today's stock and ETF
trading video provides you with a few of our top stocks to buy for short - term entry in the coming days.
Since 2002, we have been using our disciplined, rules -
based system for timing the markets, which is one of the reasons we have managed to produce consistent
trading profits with the detailed ETF and stock
swing trader picks provided in our end - of - day stock newsletter.
Rather than looking at actionable
swing trading stock and ETF
trade setups in a market that has not exactly been conducive to new
swing trade entries lately (whipsaw city), today we will instead assess the current technical support and resistance levels of several broad -
based ETFs that track the main stock market indexes.
Based on this formula, stocks that return a value of 20 to 30 are very explosive and are usually best for
swing trading, especially when they are liquid (easily tradeable for individual and professional investors alike).
All the stocks and ETFs discussed in today's video were found using the new MTG Stock Screener, a web -
based program designed to help
swing traders quickly and easily find the best short - term
trading setups that meet our strict technical criteria.
Based on the weekly and daily chart patterns above, we have officially added $ IBB to our watchlist as a potential
swing trade setup on the short side.
For this pullback entry on our ETF
trading watchlist, regular subscribers of our Wagner Daily
swing trading newsletter (details here) should note our exact entry, trigger, and stop prices
based on our technical
trading strategy.
Although our stock picking strategy for
swing trading is
based primarily on technical trend following and market timing, we also incorporate certain elements of the popular and proven CANSLIM model into our stock selection process (although we tweak the indicators to be applicable for shorter holding periods than CANSLIM is intended for).
In the recent June 18 issue of our Wagner Daily
swing trading newsletter (and on this blog post), we said our rule -
based market timing system had suddenly switched from a «sell» signal to «buy signal for the first time in more than two months.
But to quickly learn the key details of how our disciplined, rule -
based trading methodology works, check out our complete online
swing trading course today.
Because our momentum -
based strategy for
swing trading stocks focuses primarily on small to midcap stocks (many of which are
traded on the Nasdaq), we would obviously welcome the next phase of the market rally being driven by the Nasdaq.
In our last blog post, Benefits of a rules -
based trading system, we said the following: «On May 1 (Tuesday), the combination of heavy volume selling in the Nasdaq, bearish «stalling action» in the S&P 500, and a «distribution day» (higher volume selling) the prior day forced us to cut long exposure in our model
swing trading portfolio from approximately 38 % down to 17 % by the following day's open (May 2).
To receive the exact entry, stop, and target prices of our best stock and ETF
swing trades, including the ones discussed in this video, become a subscriber of our
swing trading stock newsletter, The Wagner Daily (less than $ 2 per day
based on annual subscription).
At less than $ 2 per day (
based on annual subscription), our
swing trading newsletter may be just what the doctor ordered.
We will be taking profits on both
swing trades on today's open (approximately 1.7 % net gain
based on the $ 50,000 model stock
trading portfolio).
For ETFs and stocks we are stalking for potential
swing trade entry, we keep an internal watchlist of setups that are moving in the right direction, meaning that they are above their respective 50 - day moving averages and also setting «higher lows» within a
base.
As always, regular subscribers of The Wagner Daily, our technical
trading newsletter, will be notified in advance of our predetermined entry, stop, and target prices for the $ TAN
swing trade if it meets our strict, rule -
based criteria for buy entry.
Based on the winning technical analysis techniques of our system for
trading ETFs and stocks, today's
trading strategy video provides you with a few of the best ETFs to buy for potential
swing trade entry in the coming days.
Based on the winning technical analysis techniques of our ETF and stock
swing trading methodology, today's stock picks video provides you with a few of our top stocks and ETFs to buy (or sell short) in the coming days.
Based on the technical analysis techniques of our proven
swing trading system for stock and ETF
trading, today's
trading strategy video provides you with several of our best stock and ETF picks to buy today, or in the coming days, for short - term
trading.
It is calculated
based on quarterly compounding, using the exact historical
swing trade performance data detailed below the graph (please note disclaimer at bottom of page):
To receive the exact entry, stop, and target prices of our best stock and ETF picks, such as the ones discussed in this video, sign up for your risk - free trial subscription of our
swing trading stock newsletter, The Wagner Daily (less than $ 2 per day
based on annual rate).
Instead of entering this
swing trade setup
based purely on anticipation of the pattern working, our technical
trading system mandates that we first wait for price confirmation that indicates momentum has shifted back in favor of the bears.
When we first explained the
trade setup on September 24, we said our estimated holding time for the
swing trade would be just 2 to 5 days because we were only looking for a «very quick, momentum -
based «pop» above the 200 - day MA.»
Our rule -
based market timing system, which is designed to keep us out of harm's way during violent bear markets, and even profit through inverse ETFs and / or short selling, is one of the key reasons traders maintain their subscription to our
swing trading service over the long - term.
One of the main types of short - term
trade setups that is part of our proven
swing trading strategy is to buy Potential Breakouts above valid
bases of consolidation, in stocks exhibiting relative strength in the broad market.
To receive the exact entry, stop, and target prices of our best stock and ETF picks, such as the ones discussed in this video, sign up for your risk - free trial subscription of our
swing trading stock market
trading newsletter, The Wagner Daily (less than $ 2 per day
based on annual rate).
Based on the winning technical analysis techniques of our ETF and stock
swing trading methodology, today's stock picks video provides you with a few of our top ETFs and stocks to buy in the coming days.
For our exact entry, stop, and target prices of the stocks discussed in the video (and more), become a subscriber of our
swing trading stock newsletter, The Wagner Daily (less than $ 2 per day
based on annual subscription).
The
trading idea is
based on a breakout above the local
swing high and continuation of the main uptrend.
The
trading idea is
based on a breakout above the downtrend line and the local
swing high with further upward movement.
An example of a strategy that can be very profitable is
swing trading using super short stock
based binary options.
Most investors buy shares of various companies and depending on their
trading mentality, either sock them away for the long term in their investment portfolios (buy - and - hold investors) or
trade them on a short - term
basis (day traders and
swing traders).
Throw in algorithmic
trading, whereby machines buy and sell
based on data, and you're seeing much larger
swings on both the upside and the down.