3 Week swing trading strategy for stocks

[ramesh151]

Three week investing

1.check major market direction SEN*** AND OR NIFTY Direction
If trend is up,buy first.
If trend is down, sell the shares you have
Always invest in major market direction. Never against it.
2.check market strength
how strong? very strong or moderately strong or weak?
Number of Points rise in sen*** can help decide this.
What type of stocks?
Those having
1.Price above 20 rupees share price,
2.Having high daily trading volumes above 40000,
3.Having a high beta value more than 1.2(decent volatility)
4.Not belonging to (BANKRUPT,HEAVY LOSS,HIGH DEBT)category where stock continues downtrend forever,
preferable to use stocks having a drop and recovery over short time frame of 2 to 4 weeks.

3.Stock Investing
First, confirm by trendline for 2-4 weeks if downtrend ended and uptrend for stock began for buying.
For selling do opposite,draw uptrendline and make sure uptrend ended. Then sell as downtrend begins.
In short, trendline break is the primary parameter for whole process.
see chart say minimum 3 month chart (if one month chart not available)
Look for support level and keep stoploss just below that.
a. watch for a trend that is just ended. it can be up or down.
b. You must enter in to buy if a downtrend finished and uptrend just
began
c. Range In case of downtrend,RANGE must become minimum.
d. Slowstochastics must be below 20,be ready to move up,%k to
move over %d
e. Moving average 5EMA must cross above 20 EMA for buying,
(opposite for selling,SAY 5EMA CROSS BELOW 20EMA)
f. If earlier trend was uptrend, see the pullback downwards ended.
g. Consolidation after downtrend is already taken place before uptrend
begins
h. Volume MUST show rising trend,100%
i. Money flow index TO start moving upwards.

Major mkt is up,, index rise is % wise strong= then buying is ok
Major mkt is down, index is falling % wise down=then sell the stocks you have
For buying
Make sure the downtrend is just over and uptrend just began,price moved above downtrendline.
Keep stoploss just below recent swing low
Keep profit target slightly below previous recent/monthly high
Confirm if stochastic buy signal is there(below 20 and %k is over %d)
Confirm 5ma is above 20ma,and price over both
As soon as price begins rising by 2% with volume rise of 50%, buy

For selling
Major mkt is down,, index fall is % wise strong= then selling is ok

Make sure the uptrend is just over and downtrend just began.
price has started falling below the uptrendline.
Keep stoploss just below recent swing high
Keep profit target slightly above previous monthly low

Confirm if stochastic sell signal is there( value above 70,%k moves below %d)

Confirm 5ma is below 20ma,and price below both
As soon as price begins falling by 2% with volume rise of 50%, sell
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Remember to move the initial stoploss to a higher breakeven stoploss level as soon as price moves up in a buying scenario.

you may check it up for ARVINDMILL CHART.

http://finance.yahoo.com/q/ta?s=ARVI...e20&a=ss,vm&c=

TO DRAW TRENDLINES LOOK AT SMALLER CHART

http://finance.yahoo.com/q/ta?s=ARVI...e20&a=ss,vm&c=

WIPRO
SEE 5 PRICE CYCLES UP AND DOWN
http://finance.yahoo.com/q/ta?s=WIPR...e20&a=ss,vm&c=

SATYAMCOMP
see the long sideways trend(consolidation)in the middle
http://finance.yahoo.com/q/ta?s=SATY...0&a=ss%2Cvm&c=

Rameshbabu

[AltonDelmote]

Picking the best stocks to swing trade is also going to determine your success. You are looking at price fluctuations when you are engaging in swing trading so you want most other things to remain as stable as possible as you try to peg where the peaks and valleys of price changes end up. If you are trading in small cap then you might get more volatility than you bargained for. Large cap might be the better way to go. Choose correctly and see if you can get the timing right, you might just turn a nice profit on swing trading.


Thanks...