Swing Trading Guide

1. Trading Concept

In a market with clear trends, choose a breakout point with a high profit-loss ratio and winning rate for swing trading and hold it.

2. Select the target and open a position

Choose a variety with a clear trend on the daily line or a trend that is about to appear after long-term consolidation. Look for pattern breakthroughs on the daily chart, such as convergence patterns, triangles, channel breakthroughs, or trend line breakthroughs. Make sure that the breakthrough occurs when it is close to the resistance level and is accompanied by a small cycle consolidation signal, such as a continuous small Yinxian, a small Yangxian or a cross star. Open a position at the critical point of the sideways consolidation of the small cycle (such as a 5-minute, 15-minute or 60-minute chart).

3. Stop Loss Strategy

Before starting, the price fluctuations on the upper and lower edges of the small cycle shall not exceed 10 times. When shorting, the upper edge is the stop loss point, and when longing, the lower edge is the stop loss point. The stop loss range can be appropriately expanded for light position trading. When the profit reaches 20-30 fluctuations, adjust the stop loss position to the opening point.

4. Stop Profit Strategy

When encountering an important moving average, consider reducing the position (it can also be combined with the golden section). When encountering previous highs or lows, reduce positions. When the market forms a platform or breaks through the trend line after making a profit, lighten the position. When the profit-loss ratio reaches 2:1 or 3:1, adjust the stop loss point to the opening point.

V. Fund Management

The goal is to control losses, keep the trading curve rising, and maintain a good trading state. Clarify the maximum loss that can be tolerated under normal trading conditions. The maximum number of consecutive losses is 5 times. The maximum amplitude of a single loss is set to 1/6 of the total funds (leverage trading may require further adjustment). 👉Follow me to view the simplicity of the main coconut and start your wealth journey! 🚀

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