Trading Strategies

10 Best Candlestick Patterns
Swing Traders Action Zone - The Trading Strategy

The Traders Action Zone (TAZ) is a buy and sell zone on a chart that swing traders can use to identify possible reversals in a stock.

This is just simply "area" that we look at to see if a stock that is in a strong uptrend, after pulling back to this area, will likely reverse.

First of all, let’s take a look at all of the different types of traders involved in the stock market when looking at a daily chart.

Then, we will look at where they buy stocks. We'll focus on the long side only.



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Trading Pullbacks - Buy Weakness and Sell Strength

Buying weakness and selling strength is the art of buying pullbacks. Stocks that are in up trends will pull back offering a low risk buying opportunity and stocks that are in downtrends will rally offering a low risk shorting opportunity.

As a swing trader, you have to WAIT for these opportunities to happen because…

Doesn’t it make more sense to buy a stock after a wave of selling has occurred rather than getting caught in a sell-off?

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How to trade gaps on a stock chart

Are all gaps created equal? Nope. There are really only two significant factors to consider when trading gaps.

You have to be able to identify if the gap is caused by professional traders or amateur traders. There is a big difference between the two!
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How to Get a Good Entry on a Stock

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How to Read Charts Through Different Time Periods

Looking at multiple time frames can give you a better idea of what is happening with a stock. For swing trading, we can break this down into 4 time periods: The daily, weekly, 60 minute, and 5 minute time frames.

Looking at a stock through different time frames can be confusing if you are a new trader. Why? Because each time frame looks different! A stock may look great on the daily chart, but look horrible on a 5 minute chart.
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How To Use The ADX Indicator
The ADX indicator measures the strength of a trend and can be useful to determine if a trend is strong or weak. High readings indicate a strong trend and low readings indicate a weak trend.

http://www.swing-trade-stocks.com/chart-patterns.html

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Finding Relative Strength
Find Out if a Stock is Strong or Weak

Relative strength refers to how strong a stock is relative to something else. This could be either how strong it is compared to the overall market or the industry group that it is in.

If it is stronger, than then we say that it has relative strength. If it is weaker, than we say that it has relative weakness.
Relative Strength

To improve your odds of a successful trade, you want only want to trade stocks on the long side that are stronger than the market itself. One way to do this is to compare it to the S&P500.


How To Use Fibonacci Retracements
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