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What is the Best Swing Trading Strategy?

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What is the best swing trading strategy? Someone said buy when 8-day EMA crosses over 21-day EMA, and sell vice versa. Does this work? What do you do? (Sorry, I am fairly new to trading)

:doh:

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There is no "best" swing system. You have to investigate systems and decide which one trades the way you like in terms of frequency, drawdown, equity gain, etc. Then you will have the best system for you and that is the best one and only you can determine which one that is. No easy road to the holy grail.

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What is the best swing trading strategy? Someone said buy when 8-day EMA crosses over 21-day EMA, and sell vice versa. Does this work? What do you do? (Sorry, I am fairly new to trading)

:doh:

 

Asking for the 'best' way to do anything on this forum is a surefire way to produce a thread that quickly degenerates into pointless mudslinging, from what I've seen!

 

However, as I am a swing trader and not a daytrader, it's nice to have the opportunity to discuss this on TL. A general desription of my approach would be to say that I buy corrective pullbacks in longer term uptrends, and that I short corrective rallies in long term downtrends. This is a form of 'reversion to the mean' trading, and assumes that the market tends to move back in the direction of the longer term trend. Some markets are more mean-reverting than others.

 

To do this you are going to need three things:

 

1. A method of determining the long term trend (moving averages, trendlines, and heikin-ashi techniques are all popular).

 

2. A method of identifying precisely when to trade the correction (overbought/oversold oscillators, fibonacci, and volatility channels are all options).

 

3. The means to throroughly backtest your strategy over a significant amount of historical market data to ensure that its past performance would have been acceptable to you (a key assumption of which is that future performance will be similar - there are many pitfalls associated with system testing and you should make yourself aware of these).

 

I hope that's helpful to you.

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It also depends on what stock you are trying to trade, what the current market is doing and many other factors. Even if you find the right numbers now, it is likely to change with the market. You strategy should be evolve as the dynamics changes.

 

- strategYard.com

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I know this thread is a bit old, but I came across it while browsing and just wanted to share my general swing trading strategy with you.

 

I put together a 7-minute video that does a good job of summarizing it, and have uploaded it to the Videos section of TL. Here is the direct link to the video.

 

Hope that is helpful.

 

Regards,

 

Deron

 

What is the best swing trading strategy? Someone said buy when 8-day EMA crosses over 21-day EMA, and sell vice versa. Does this work? What do you do? (Sorry, I am fairly new to trading)

:doh:

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What is the best swing trading strategy? Someone said buy when 8-day EMA crosses over 21-day EMA, and sell vice versa. Does this work? What do you do? (Sorry, I am fairly new to trading)

:doh:

 

8 EMA crossing 21 EMA has worked out for some swing raders that i know out...try it out urself in a SIM for a month and judge urself if this works out for u according to your trading style and risks ..U'll know it urself without even asking anyone..

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What is the best swing trading strategy? Someone said buy when 8-day EMA crosses over 21-day EMA, and sell vice versa. Does this work? What do you do? (Sorry, I am fairly new to trading)

:doh:

 

The best trading system is subjective as everyone is different & no two people will trade the identical system the same. Know yourself. Psychology is the largest component of any trading system. What works for one will not work for another. :boxing: Trial & error worked for me.

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I think it's more important to understand what and who is moving prices and why they are moving up or down.

 

keep it simple. markets go up, down, or are in a range.

 

if it's down, wait for buyers to enter and market to rise and traders to take profit. then go long.

 

if it's up, just buy

 

if its in a range, wait for a breakout, then profit taking, then go long...

 

 

take a little bit of profit off the table and then let the rest ride.

 

Keep it simple and follow daily or weekly charts.

 

obviously those are for going long....which is a good thing when trading stocks that hopefully pay some dividends :)

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Swing trading has been described as a kind of fundamental trading in which positions are held for longer than a single day. This is because most fundamentalists are actually swing traders since changes in corporate fundamentals generally require several days or even a week to cause sufficient price movement that renders a reasonable profit.

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Swing trading has been described as a kind of fundamental trading in which positions are held for longer than a single day. This is because most fundamentalists are actually swing traders since changes in corporate fundamentals generally require several days or even a week to cause sufficient price movement that renders a reasonable profit.

 

In reality, swing trading sits in the middle of the continuum between day trading to trend trading. A day trader will hold a stock anywhere from a few seconds to a few hours but never more than a day; a trend trader examines the long-term fundamental trends of a stock or index, and may hold the stock for a few weeks or months. Swing traders hold a particular stock for a period of time, generally a few days or two or three weeks, which is between those extremes, and they will trade the stock on the basis of its intra-week or intra-month oscillations between optimism and pessimism.

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