That would be trading on extreme swing areas - swing highs and lows.
If you are patient enough and wait for such opportunities, you will be rewarded.
One strategy is follow the trend, enter when the stock hit the lower end of the trend line and exit when it hits the top of the trend line. Another strategy I use is to trade when a stock bounce from a support, and sell when it hits my target price or if the stock falls back below the support as my stop loss.
Try trading trendline breakout
I tried that in the past but too many fake breakouts and chop. Maybe a good filter will help but I could not find any. I tried the ADX and MAs with no results.
FrankBirch
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Hi to all,
You may want to look at Reversion to mean type trading, sharp pullbacks which then revert.
Most trades you will be holding 1 to 3 days and its well documented.
Ive attached a chart showing the BUY and Sell signals.
And a link to info on reversion to mean.
http://www.investopedia.com/terms/m/meanreversion.asp
Regards
Frank Birch
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malaguti
the lesser spotted omnitrader user, nice to see one around Frank!
FrankBirch
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Ha Malaguti, there is still some of us out there!
