Recently, I opened up SharePlanner to guest postings, primarily on the weekend. Today I have an article from Hung Tran over at SwingDragon, who is also a regular contributor to the SharePlanner Chat-Room, providing lots of solid daily opinions and analysis on the market. His post below outlines a simple swing-trading strategy that he uses that is very adaptable for any trader to use. If you are also interested in having your articles posted on SharePlanner, just shoot me over an email using my contact page.
In this article, I want to share with you all a simple swing trading strategy that I learned and customized to my own trading style. I have found this strategy to be quite accurate if executed correctly. Even though the potential reward might not be high but the time duration the trader has to hold the stock is very short to recognize profits and move on to the next trade. Another advantage is that stop loss can be placed right below the low of the entry day and therefore incur a very low risk entry.
This strategy combines the use of 3-4 technical indicators: