Easy Swing Trading Method Transcript 1. Hello fellow traders, this is Roger Scott from Market Geeks and today I have another video tutorial for you. The title of the tutorial is easy swing trading method for anyone. And before I forget, please subscribe to our channel for new swing trading videos and trading tips. 2. During the last month I received a few requests from traders who are just getting started. They were happy with the advice I was providing but wanted me to show some simple strategies that are simple for beginners to learn. I decided to give specifics this time around, so that you can actually apply this trading method and hopefully will benefit from it. 3. One of the first trading methods I learned was a simple channel breakout. What I like about channel breakouts is they are so simple to learn and it doesn’t take much to identify these channels. 4. The first thing you need to do is identify a channel. I will use daily charts to demonstrate this but you can apply this to any time frame you prefer. The first step is to locate a market that’s trading in a trading range for the last 10 trading day or two weeks. The tighter the channel the better the trade and the less risk you will have. Try to pick markets that are typically volatile but tend to quiet down during the trading range. If the channel is leaning up you only look for trades to the upside. If the channel is slanted downwards, you should only take trades going down. 5. Here is an example of what I mean. In the example below, Microsoft is in a trading range that lasts over 10 trading days. The slope is upwards so I will only look for trades going up. 6. The second step is to wait for a gap going up. Remember you want to ignore all trades going short if your slope is upward 7. The final step is to place your order and your stop loss. The entry order is placed 2 ticks above the high made on gap day and the stop loss is placed 2 ticks below the low made on gap day, this is how it will look on the technical chart. Don’t get nervous or stressed out if you don’t understand this. This is an easy swing trading method for anyone but if you are a beginner take it slowly in the beginning. 9. Once I enter the market and place my stop loss I need to figure out where to take profit.
Take the distance between the entry price and the stop loss and multiply it by 4 and add that to your entry price. Since the difference between the high and low in this case is about 65 cents, I add a few ticks for the entry and added two ticks for the stop loss and came out with $.70 cents. I then multiply this number by 4 and come up with $2.80 cents. Since I entered at $27.00 my exit target would be right around $29.80 cents. Let’s see how that looks on the chart. 10. You can see the entire sequence of events from analysis to exit point. This strategy is a simple channel strategy and is one easy swing trading method for anyone to learn. It works with all markets and time frames. If you want to trade this swing trading method to the short side just reverse the rules and make sure the upper channel line is sloping downwards. 11. That’s it for today’s tutorial. If you want to learn more about swing trading please visit our site, marketgeeks.com and don’t forget to subscribe to our channel for more swing trading video updates and Trading Tips. This is Roger Scott wishing you the best in your trading. http://www.marketgeeks.com/easy-swing-trading-method-for-anyone/
Published on Feb 15, 2013
http://www.MarketGeeks.com - Easy Swing Trading Methods shows you a simple channel breakout strategy that applies to any market and time fr...