– Go for profits of the immediately preceding swing.

– Space is more predictable than time.  Always have angle graph.

swingtrading2– Strongest spring is on with the sharpest reversal and overlaps the most closes.

– Buy at 01 distance below 2.

– Liquidate at slightly less than 1-2 distance above 3.

– If 2-3 is greater than 0-1, be alert for a trend change and lower liquidation order to 1 tick below 2.

swingtrading3– Initial stop is 0-1 distance below point of entry.

– Upthrusts and springs are quite common in the market and generally only mean a 50-100% retracement of the most recent swing.

A) Sharp rally points direction of strength.

swingtrading4B) Reluctant reaction implies another drive to test and perhaps penetrate top.  Look back to CD as an aid in evaluating if AB will hold for another drive up.

– If NOL occurs after UT, look for a possible ABC down.  If distance 2 is greater than, less than, or equal to 1, do not buy on spring action above A.

swingtrading5– After UT, be alert for purchase.  Buy point is on spring at E when market barely penetrates C.

– A sharp rally at D implies good quality buying and is a potential buy at E.  This is particularly true after an ABC down against the prevailing trend.