Ok, “best” is subjective. But this is my favorite swing trading strategy, mainly because it captures some explosive stock trades. There is a common price pattern that tends to occur before many stocks rally sharply. This pattern can be used as a strategy because it provides:
• A defined entry point.
• A stop loss that can often be placed within several percent of the entry point, keeping risk on the trade small.
• A favorable reward-to-risk opportunity, in that we only take trades where the likely profit is much bigger than our risk.
In this article, I will lay out how this all works, what the pattern is, how to trade it, and how to find it.
I have also noticed that the Trade Triangles can be used in conjunction with this strategy, providing alternative entry points and signaling when to take profit off the table. Therefore, you can continue to use the MarketClub Trade Triangles, or you can add them to the strategy to aid with your trade selection. Continue reading "The Best Price Action Swing Trading Strategy"