In this video, you'll discover 4 simple swing trading strategies to profit in bull & bear markets.
So go watch it now...
** TRADING BOOK **
Price Action Trading Secrets: https://priceactiontradingsecrets.com/
** FREE TRAINING **
Stock Trading Secrets:
https://www.tradingwithrayner.com/sts/
So go watch it now...
** TRADING BOOK **
Price Action Trading Secrets: https://priceactiontradingsecrets.com/
** FREE TRAINING **
Stock Trading Secrets:
https://www.tradingwithrayner.com/sts/
Hey hey: what's up my friends, so in today's training i want to share with you four simple swing trading strategies right that you can use to profit in bull and bear market. So let's get started with number one. This is what we call the break and re-test strategy, so this strategy is used right when the price breaks out and you don't want to chase the market. So how do you capture right that burst of momentum right without chasing the market? So you look something like this right.
Let's say market's in the range up down up down break out and you don't want to buy at this heist, you don't want to change the market. So how do you trade this setup? So what you want to do is to wait for the price to come back lower to re-test this previous resistance resistance, which could become support so you're. Looking for a bullish price rejection, something like a hammer. A bullish engulfing pattern right to signal right that the buyers are stepping in and about to push the price higher.
So it's something like this right. Let's say this is a hammer form right when this happens at this previous resistance resistance, which could become support. That's a sign that the buyers are stepping in and you can use it to time your entry to go long and to you know catch. This makes a burst of momentum towards the upside, so this is the first set up the break and re-test.
Second, one is this right: the trend continuation false break, so this is for you right if you want to achieve right, a risk to reward ratio of you know 1 to 1.5 or more. So this is also used right when the market is trending. So, as you know, market is trending up higher like this in an uptrend. So where do you enter this trend? So what you can do is to look for a trend: continuation, look for the market to re-test this previous swing high in this trending market condition, and what you're looking for is for the price to make a false break, in other words, a false breakdown.
So this is the lows price trades below this low and then quickly reverse up higher closing back above the low. So we call this a false breakdown, a false breakout in the direction of the trend. So this is why it's a trend, continuation, trade. So what you can do again when that happens, so you can again look to enter on the next candle open or use a buy limit order if you're a bit of a cheap skate like me right entering somewhere about here, your stops can go one atr below This low a distance below it somewhere about here, then your possible target could be just before this swing high.
So when you kind of like assess your risk to reward ratio, let's say this is your entry. Then let's say this is your stop loss and let's say this: is your target right often right, you should be able to find at least a potential 1 to 1.5 risk reward ratio. Let's call this your reward right. So if you assess right yo, this is the amount that you're risking okay, and this is your potential reward.
Usually you should be able to get at least you know a one to one point. Five and you know, if you go with a trailing, stop loss, you could even you know, get a one to two one to three risk reward ratio on this trade, it's possible as well. So that's the second setup for you, the trend continuation fall, spread. The third setup that i want to share with you is a counter trend setup. This is for you, if you're the type of trader that wants to take a contrarian approach. You don't want to trade with the hurt. By the same time, you want to minimize your risk right in case you're wrong. So how do you take this? A counter trend, setup, so pretty simple to count.
The trend setup usually occurs right when the market is trending and you are trading against the direction of the trend. So let's say something like this: okay market is trending up higher and at this point right at this point, when the market is trending higher as a contrarian trader as a counter trend trader, you don't want to be selling at this point over here, because the price Is kind of like no man's land, it could continue to go up higher another 10 20 30 percent. So what you want to do instead is to wait for the market to make a deep, a pullback okay, when that happens, and when it starts to go up again, pay attention to this reference point pay attention to this swing high because, as a counter trend trader, You want the price you want to see if the price can fail at the highs, because if you fail at the highest rate, it tells you that no, there is possibly selling pressure coming in right and traders who are long buying the breakout if they get it Wrong right, the price could quickly, you know, make a pullback right towards the downside, so what you're looking for is for the price to fail at this swing high. So something like, let's say, a shooting star pattern like this, for it to fail like this.
Okay. So when he fails right, okay, it doesn't mean that the entire trend is going to reverse. No, that's not what i'm saying, but in the short term right there could be selling pressure and this market could hit down lower right from then on. I won't say uh.
It's unlikely, the entire trend will reverse, but you can expect some short-term selling, short-term weakness and, as a counter-trend trader, you can catch a small piece of the move right towards the downside. So that's kind of like how we can adopt a counter-trend approach again. Bear in mind right, we are not trying to time this and say this is the end of the trend. No, that usually would uh be a very costly thing to do, because, more often than not, the trend is likely to continue higher as a counter trend trader.
Your goal here is just to capture that one small piece of the move right against the direction of the trend, so this way is one way to do it with low risk, because you can use this reference point right to set your stop-loss. Your stop-loss can now just go, let's say a distance above this high somewhere about here and then try to capture that small downside, move and finally range market. This is for you if you want to buy low and sell high. This is a pretty straightforward. So let me illustrate so: let's say the market is in a range between this high and then this low. So, as a trader you're, looking to kind of like you know, buy low and sell so let's say the market comes down: lower, buy low, comes up, sell high. So, to be honest, right range market uh. There are two things i want you to pay attention to number one right: we're not illustrator, it looks simple, oh yeah, reyna just come down, lower buy low market goes up, sell high straight forward, but in the reality of trading right.
What often happens is that the market comes down lower, it goes up, higher, comes back down lower and then maybe finally it reaches your target. So you can see that there's a lot of back and forth movement right in this type of range market condition. So you've got to manage expectations that the market might not move to your target debt smoothly. In one swing, you might, you know, go up and down against you test your emotions before finally reaching your target or even possibly hitting you and stopping out for a lot.
So that's possible as well. The second thing i want to share with you when it comes to range trading, is because range trading is so common, but there's a lot of nuances right that i'm not talk about, and the second one to talk about is basically right. Talking about uh trading right from the best area of value in the range, so let me explain so: let's say market goes up, comes down and, let's say trader wanted to sell at the highs of this range sometime. The market might come near.
The highs of this range and then make you think: oh, it's not going any higher it's about to reverse down lower, so what traders will do is that they are two angels fear of missing out. They quickly sell this market shot this market because they don't want to miss the down move lower and what happens is that, instead of the market heading down lower, they got shot here in the market, squeeze them up higher going above the highest of the range before It comes back down lower, so you can see that if you are too early trading in a range market condition, you could get squeezed out of your trade right before the market moves in your direction. So if you trade range markets, please bear in mind that these are the two things that i want you to take note of. So if you enjoyed this training, video smash the thumbs up button, if not then hit subscribe and by the way, if you want to learn more about swing trading, price action trading strategies then grab a copy of this book called price action trading secrets.
It's about a 140 page uh color trading book right where you'll discover price action trading strategies that you can use to profit in the financial markets, i'll put the link somewhere below this video, so we can get a copy of it without well with that's it. I wish you good luck. Good trading, i will talk to you soon.