We have already shared many Swing Trade Strategies in past,
today sharing few more good strategies with examples. You can
master any of one which suits you.
Please check pinned messages for past PDFs.
Last strategy is one of my favorites.
1 - All Time High or 52-week High Breakout:
Stock that breaks the uptrend are the one that can give massive up move.
These stocks are considered as strong stocks in themarket.
Timeframe should be monthly and if price closes above ATH or 52 week high
on any day you can enter.
#TCS Chart.
It gave breakout above its All Time High level almost 3 years later and then
never looking back.
Price moved up from 1200 to 3700. Returns of 200% in five years.
How to Follow/Trail Stop loss?
Initially keep stop loss at swing low on Weekly or Monthly chart and trail your
stop loss accordingly to enjoy massive up move.
Other ways of Trailing Stop loss can be using 20 or 50 EMA or any other
indicator.
2 - Volume Spike:
Rules:
Time frame: Daily/Weekly
Volume should spike by more than 2x after a good downtrend (on non event
days)
After spotting the candle in which Volume Spike isthere, mark high and low of
that candle as it is very important.
Wait for the price in the next few days to close above the high of that candle.
Once the price closes above the high, buy that stock and keep. Stop loss a few
points below the low ofthe candle in which the spike is there.
Sometimes candle will be big and sometimes it will be small, so better risk 2-
3% of the total capital in each trade.
Keep Risk:Reward of at least 1:2.5 so let's say risk in stop loss is 20 points,
then reward/target has to be more than 50 points.
I also use 10-20% target for short term and 40-50%target in positional trade.
You can use this rule as well.
As we are taking reversal trade, hence no need fortrailing stop loss. Exit if
your target is hit or trail aggressively.
If you see Volume Climax setup at support/resistance, then it is the best trade
to take inswing/positional. Never miss such a trade.
Now let's see #DMART Weekly Time Frame formed Volume Climax Pattern and
after breakout stock moved up by 130%. Risk was hardly 20% in this.
3 - Volatility Contraction Pattern:
Identify a big candle either bullish or bearish whichhave less wick.
Volume of this candle should be above average.
After that at least three entire candle should forminside the range of that
big candle.
Wait for breakout above high of the big candle with good volumes.
Stop loss will be low of the same big candle and trail SL as per your
setup.
Target Risk:Reward of at least 1:3
Stock can be in any trend.
Use Daily/Weekly/Monthly Time frame.
Let's see some live case or examples.
#Graphite Daily Chart.
After satisfying all the criteria of candle formation and a breakout above big
candle high.
After that stock had rallied from 255 to 475 which is almost 90% returns in
short term. Risk in this trade was 11%.
#SRF Weekly Chart.
It had formed Volatility Contraction pattern and gave breakout above high.
After that stock had rallied from 415 to 800 in short term.
Returns of 100% and Risk in this trade was 10%.
#IndiaMart Monthly Chart.
It had formed Volatility Contraction pattern and gavebreakout above high.
After that stock had rallied from 2750 to 9900 in sixmonths.
Returns of 240% and Risk in this trade was 43% which is very high. So position
sizing is importanthere.
These are some Positional and Swing Trading Strategies I use in Stocks.
Note all these strategies are simple and effective to use but these are not holy
grail strategies. If you are confident and comfortable, then only use it.
Stop losses will hit, but it is the part of trading. So accept it and move on to the
next opportunity.
