You need following things to implement no loss swing trading strategy.
1. Daily chart (Now a days all brokers provide this chart)
2. Simple moving average 10 period (10 MA)
3. CCI indicator
4. Default volume indicator
10 MA with daily chart works like magic and it acts as strong support or resistance. You will observe that whenever price touches 10 MA it bounces back. Once the price crossed 10 MA, there could be the possible trend reversal.Take a look at following screenshot.
In this screenshot, whenever price crossed 10 AM from below, the trend changes from downtrend to uptrend and vice versa. CCI plays very important role here to identify overbought and oversold situation.
Where to buy?
Whenever you see the price is crossing 10 MA from below with good green candle with minimal or no wicks (Marubozu candle will be great) also CCI in oversold condition i.e below 40 value and volume of the green candle which crosses the 10 MA should be higher than pervious candles volume then you can buy above the green candle.
Where to keep stoploss?
Do not keep the stoploss at same green candles low. You should wait and if any red candles closes below 10 MA, then you can put your stoploss below that red candle.
Where to book profit?
There is no hard and fast rule to book profit. Book your profit as per your need. Usually I Keep the target 1:3 in normally market and I follow the 10 MA in trending market which gives me 1:10 also many times.
Since we are dong swing trading in stocks, you have only buy option available but if you want to sell you may sell stock future and buy put option of that particular stock. When market is in downtrend, put option can give you huge money.
This is proven strategy and I have been using this strategy for many years. I also suggested this strategy to my close friends and they are also earning huge part time.
If you want to use this trategy for intraday, then you should go for 15 min or 30 mins timeframe only. Less than that is not recommended at all.
Just follow the simple rules and always be profitable. If you have any doubts, ask us in comment section below or you can reachout to us throught contact us page.
Happy Trading!
Sign up here with your email
ConversionConversion EmoticonEmoticon