AI
Thursday, February 20, 2014 12:12:19 PM
Swing Traders Look for Fumbles and Interceptions
http://www.swing-trade-stocks.com/200704.html
What is swing trading? What exactly are you trying to identify on a stock chart? Judging by my email, I can tell that many new traders are missing the whole point! So, I thought about this for awhile. I can sum it up in one sentence:
You are trying to identify when there is a transition from sellers to buyers (long) or from buyers to sellers (short).
That's it.
It is kind of like a football game. You are looking for those times on a stock chart where one side has the ball, gets tired, fumbles, and the other side gains possession. Or, you are looking for a violent change in direction - an interception.
But how do you identify these fumbles and interceptions?
...note chart date is 2007)...
sultans of swing dire straits
On this chart, we have two interceptions and one fumble (with cheesy little football icons!). Starting at the left side of the chart, ABAX was in a clear downtrend (not shown). The sellers had possession of the ball. Then there was a kicker candlestick pattern.
This is the interception that changed the outlook of the game.
Going to the second football (middle of the chart), you see four consecutive down days. The sellers have the ball. But, looking at the last two down days, you begin to see the tails forming on the candles. The sellers are gradually getting tired and the buyers are getting stronger.
Then, all of a sudden, and "up day". This is an inverted hammer. Sellers have fumbled and buyers now have possession of the ball.
Going to the last football, you see 5 consecutive down days. On the last down day, the stock closes at the very bottom of the range. Sellers have complete control over the stock. They are winning.
Then, on the next day, there is a violent change of direction and a bullish engulfing pattern develops. An interception!
So, if you think of trading as just a game of football, it may be easier for you to make better trading decisions.
And you may score some more touchdowns.
Swing Traders Look for Fumbles and Interceptions
http://www.swing-trade-stocks.com/200704.html
What is swing trading? What exactly are you trying to identify on a stock chart? Judging by my email, I can tell that many new traders are missing the whole point! So, I thought about this for awhile. I can sum it up in one sentence:
You are trying to identify when there is a transition from sellers to buyers (long) or from buyers to sellers (short).
That's it.
It is kind of like a football game. You are looking for those times on a stock chart where one side has the ball, gets tired, fumbles, and the other side gains possession. Or, you are looking for a violent change in direction - an interception.
But how do you identify these fumbles and interceptions?
...note chart date is 2007)...
sultans of swing dire straits
On this chart, we have two interceptions and one fumble (with cheesy little football icons!). Starting at the left side of the chart, ABAX was in a clear downtrend (not shown). The sellers had possession of the ball. Then there was a kicker candlestick pattern.
This is the interception that changed the outlook of the game.
Going to the second football (middle of the chart), you see four consecutive down days. The sellers have the ball. But, looking at the last two down days, you begin to see the tails forming on the candles. The sellers are gradually getting tired and the buyers are getting stronger.
Then, all of a sudden, and "up day". This is an inverted hammer. Sellers have fumbled and buyers now have possession of the ball.
Going to the last football, you see 5 consecutive down days. On the last down day, the stock closes at the very bottom of the range. Sellers have complete control over the stock. They are winning.
Then, on the next day, there is a violent change of direction and a bullish engulfing pattern develops. An interception!
So, if you think of trading as just a game of football, it may be easier for you to make better trading decisions.
And you may score some more touchdowns.
Swing Traders Look for Fumbles and Interceptions
Change is the essence of life. It's extremely difficult to break free, but it's entirely possible. In order to initiate change, one must change their thinking. In order to change thinking one must acquire gnosis or new information. These type of lect
Join the InvestorsHub Community
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
