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Price Action Swing Trading

Professional Swing Trading-Ideas, Education and Real Results

Gold

15/5/2017

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Gold is setting up for a potential short trade; After the recent move to the lower channels, it has consolidated for a few days. This type of action may lead to a further decline to the 1200 area, if the price breaks below the red line. We are now trying to short this market (see 16th May, Trade Update)
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Soybeans....waiting for a set-up

11/5/2017

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We have been watching the July Soybean contract for a while, waiting for a potential short entry. Soybeans have been in a steady decline for several weeks, followed by the consolidation lasting for the whole of April. Typically this type of price action signals a continuation in the downward trend and we have an order to sell at 955, indicated by the green support line, with a protective stop around 990. If the price beaks to the downside, we could  see the price decline to 860, based on the measured move prior to the consolidation.
Remember we are dealing with probabilities, not certainties and at present down side action is more likely while the pattern persists.
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Swing Trading: What to expect?

11/5/2017

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Swing trading is a specific style of trading. It is neither day trading nor trend following and falls somewhere in between. What we are aiming for is to capture short duration trades, normally a few days to a week or so, when the markets we monitor show specific set-ups. The edge to successful trading is finding an imbalance between buyers and sellers. As markets are largely random in nature, most of the time no such edge exits, however when an imbalance occurs we can align ourselves in the direction that we believe the market will take. This edge may exist for a short time only and is never a guarantee of success. 
By only taking the best set-ups and quickly dispatching losing trades, it is possible to become profitable over a large number of trades. No one trade should ever take us out of the game and shooting for singles is the aim. Once in a while we will catch a home run, but the object is to take slow and steady profits from the markets.
We find from monitoring trade results that broadly speaking 40% of trades are winners, 30% lose and 30% are break-even. The winning trades are around twice as large as the losing ones, thanks largely to stops being tightened aggressively. As with all successful trading, position sizing and risk management are key components towards a profitable outcome!
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Crude Oil Trade:

11/5/2017

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This chart shows the recent trade in crude oil. We entered as the price broke lower around 49.20 at the end of April and held until stopped out, taking half the profit when the price reached 47.20. The remaining half of the trade was held until stopped out. A nice 0.9R profit.

Key points to note; the initial thrust down started in mid April towards the lower channel, then we had a pullback lasting about a week, before price broke to the downside once more.

​As we can never predict how far a market will move, profit and stop levels are essential and must be decided before entering the trade.
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    John Morris is a professional financial trader, this site shows you the setups and results achieved, using the simple methods described. 

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