Stochastic, MACD, Bollinger Bands Plus Day And Swing Traders

Learn How To Day And Swing Trade Using Stochastic, MACD, Bollinger Bands Like A Pro

Why Swing Trading

Swing trading is about capitalizing from medium term trends. Contrary to day trading that relies on short terms financial market price-action fluctuations, a swing trader takes advantage of the medium terms. 

Call him the middle man technical trader who is between day and position traders. Though many technical traders are swing trading, they do not know why swing trading.

First Factor Why Sing Trading

Technically, one wants to swing trade when a consolidation
market pattern is in place, and the price is oscillating between
two key levels. A balanced market is confirmed, and on going
and there is a demand to buy or sell at each end of the consolidation.

That swing trading play is highly lucrative especially on time frames
higher than the weekly chart, because it is more robust. So one is
swinging the price's oscillations from one end to the other. This is
in fact the origin of swing trading.

The mistake to avoid is to be a purest technical trader who ignores
the economic news and fundamentals. One may get away with it
few times, but that is not recommendable.

Considering that a typical swing trader is eating from the plate of the position traders who always use the fundamental analysis, it is rational that a technical swing trader follows in their footsteps.

A consolidation market pattern is the first factor why one is swing trading.

Note that a financial asset price-action does consolidate in horizontal channels but also in triangles. In all instances, one must adhere to a valid different times frame swing trading system.

Second Factor Why Swing Trading

The second factor why swing trading is because of the fundamentals and economic news.
A financial instrument that has failed the Google acid test is a good candidate for bearish swing traders. A bullish swing trader will check if the asset has passed that crucial acid test.

The acid test of course is not the end of a fully fledged fundamental analysis, but it is a critical verification that a professional swing trader will check before taking off like a pilot.

At the end of the day, one will only buy or sell if the market sentiment is confirming the fundamental analysis. For example a bearish stock may escape the bearish pressure in a strong bullish market environment.

The old way of swing trading just using the fundamentals
is obsolete. One must try to combine both the technical and fundamental analysis.

Remember, a swing trader is also the middle player between technical and fundamental traders.  He or she is also between day and swing traders.

Third Factor Why Swing Trading

The third factor why swing trading is because there is a trend and momentum. Follow the trend because the market trends are the best friends of swing traders who are eating in the plate of position traders such as hedge funds, investment and medium term investors.

Elliott wave traders who combines the wave principle trading with the fundamentals are excellent swing traders who cream the financial markets during the third Elliott wave, and other motive waves.

A swing trader just wants to find a trend, and cut a decent profit at the start of the mini cycles that are forming the trend in a timely fashion. This is not just about buying when the momentum oscillators are oversold in an uptrend.

It is about being a competent swing trader who knows how to enter, manage and exit a swing trade without ignoring the trading drill and triangle.

When the trend is bearish, the price will be in a declining channel, and display lower lows and lower highs.

Attention to the lower high that is formed after a lower low.

Again the Elliott wave traders, and those who mastered the market principle about the price targets are more skillful when it comes to following the financial markets' trend as a swing trader.

Fourth Factor Why Swing Trading

The fourth factor why swing trading is a confirming pattern that is developing or established.
Fibonacci patterns traders and Elliott wave practitioners are more competent than other technical traders. Though, the traditional chart patterns traders are playing the same tricks, only few understand what I call confirming patterns.

A confirming pattern will be a pattern that aligns with the current market realities, and sentiment. It make sense that one aligns the chart patterns trading with the fundamental analysis. It is also rational to pay attention to the sector and the market itself (S&P 500). 

Indeed, one is always trading first the market, then sector before trading
financial instrument itself. If one identifies a confirming pattern, one must use a top-trading method to handle the risks.
Fifth Factor Why Swing Trading

The fifth factor why swing trading is because one is a clever or competent swing trader. It is not because one can not day trade that is why one should begin swing trading. Please take time to use a demo trading account to back test your trading method and skills.

I always put on the list of the technical indicators in the document
of the TSTW systems YOU. YOU as the last technical indicator.

To drive on a motorway or highway, one needs a valid license. One may get away with it few times, but it is very dangerous. The same is true for a technical swing trader who is swing trading without being a qualified swing trader. 

Learn the theory of swing trading first, them practice until you attain real word experiences.  When you are ready, you will know.

The fifth factor why swing trading has been neglected by many traders. Even those who could swing trade have skipped that factor. Of course not everyone can swing trade.

However, it is possible to learn to swing trade if swing trading is for you.
How? Well just start learning it and keep learning more without risking real money. If at the end, you realize that swing trading is not for you then at least your money stays in the bank.


Alright, those are the five critical factors why one should engage in swing trading. I hope, I have put you on the right path.

Hopefully, you will never be the same swing trader again. Swing trading years ago was easier, but today due to the technological innovations and fast communication systems, swing trading demands more than just buying or selling and keeping fingers crossed for few days or weeks.

As for me, I learnt it the hard way and I do not wish the same thing to others.

The question now is are you a swing trader?
Do you have what it takes to learn to swing trade like a pro?
Well to be or not be that is always the question.

One who is able swing trade any financial instruments like a pro is a swing trader.

I hope you will find this article useful. If that is the whole truth, feel free to share it on the social media. You may
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Happy swing trading to all.

This article is written by George Beaulieu.