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Re: LiveLife post# 64

Sunday, 12/16/2018 12:09:17 AM

Sunday, December 16, 2018 12:09:17 AM

Post# of 338
= ADVANCED SWING TRADING 101 =

I was responding to a post on ZN board that questioned why I set = BUY ALERT = for ZN but the post got deleted - https://investorshub.advfn.com/boards/read_msg.aspx?message_id=145477835

Why trade stocks that have been falling for a long time?



Well, the fact is such things as "Dead Cat Bounce" exist along with "Technical Rally", "Reversal" and "Rounding Bottom" sometimes against company fundamentals. While we can debate endlessly the virtues of company fundamentals influencing future share price movement, after decades of trading and seeing share price move against fundamentals on many occasions, I have accepted the reality of technical indicators being more accurate predictors of future share price movement (at least short-term of days/weeks for this technical swing trader) and now I trade mostly on technical indicators and have made way more money than trading on fundamentals.

The technical indicators used on the Swing Trading Template with faster 5/30 Moving Average graphing (Instead of slower 50/200 MA default) provide usable more realistic practical triggers to track and determine BUY points for stocks undergoing Dead Cat Bounce/Reversal/Rounding Bottom/Cup and Handle/Breakout Up/Covering Short Position/Short Squeeze and SELL points for Pull Back/Short Position/Rounding Top/Reversal/Breakout Down < Definitions added to the Intro Page >

Here are some Investopedia definitions used for technical swing trading that range from BUY to SELL and SHORT to COVER:

Dead Cat Bounce (Even dead cat can bounce if it falls hard/high enough) - https://www.investopedia.com/terms/d/deadcatbounce.asp

Technical Rally (Share price rising against company fundamentals usually caused by Short Positions Covering) - https://www.investopedia.com/terms/t/technicalrally.asp

Reversal (Stocks move up and down and sideways and up and down, etc.) - https://www.investopedia.com/terms/r/reversal.asp

Rounding Bottom (The Swing Trading Template is used to BUY at the bottom of the rebound for higher trade return) - https://www.investopedia.com/terms/r/roundingbottom.asp

Triangle (Share price swing narrows) - https://www.investopedia.com/terms/t/triangle.asp

Triangle will lead to Breakout Up/Down - https://www.investopedia.com/terms/b/breakout.asp

Cup and Handle (After initial rebound and profit taking, continued gain upwards) - https://www.investopedia.com/terms/c/cupandhandle.asp

Trading Channel (After 5MA crosses above 30MA and continues to rise above 30MA within SUPPORT/RESISTANCE lines) - https://www.investopedia.com/terms/t/tradingchannel.asp

Rounding Top (Time to SELL) - https://www.investopedia.com/terms/r/roundingtop.asp

Profit Taking (Locking in profit. You don't make money until you SELL) - https://www.investopedia.com/terms/p/profittaking.asp

Pull Back (Share price falling) - https://www.investopedia.com/terms/p/pullback.asp

Short Selling (Making money while share price falls) - https://www.investopedia.com/terms/s/shortselling.asp

Short Squeeze (Shorts covering in a frenzy panic to stop loss) - https://www.investopedia.com/terms/s/shortsqueeze.asp

Buying or going Long (And we repeat the cycle of BUY/SELL) - https://www.investopedia.com/terms/l/long.asp

Learn to identify rebounding stocks and set BUY/SELL points using simplified Swing Trading Template - https://investorshub.advfn.com/Swing-Trading-Model-36395/

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