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I have a very simple method for swing trading in cash stocks.
With a Tradingview script at the end, here is a thread🧵 on my Simple Swing strategy: 👇
With a Tradingview script at the end, here is a thread🧵 on my Simple Swing strategy: 👇
The Simple Swing indicator is based on T3 Moving Average, which was first described by Tim Tillson, in the search for a “perfect” moving average.
The T3MA incorporates a smoothing technique which allows it to plot curves more gradual than common MA & with a smaller lag.
During most of the time in a trend, price will stay well away from the T3MA. Thus, a decisive close beyond the T3MA often indicates the end of a trend.
During most of the time in a trend, price will stay well away from the T3MA. Thus, a decisive close beyond the T3MA often indicates the end of a trend.
The T3MA ribbon consists of a fast and a slow moving average (MA).
The ribbon is green when the fast MA is above the slow MA. This green ribbon represents the upswing. Similarly, the red ribbon represents the downswing.
The ribbon is green when the fast MA is above the slow MA. This green ribbon represents the upswing. Similarly, the red ribbon represents the downswing.
The traditional signals are based on crossovers between fast & slow MA. These are the green & red ribbons representing the “confirmed” swings.
These traditional signals are lagging. So, we use the Early Swing signals.
These traditional signals are lagging. So, we use the Early Swing signals.
Early Upswing starts when T3 ribbon is red, but price has closed above the ribbon. This is the E0 candle.
Similarly, Early Downswing starts when T3 ribbon is green, but price has closed below the ribbon. This is the Ex candle.
Similarly, Early Downswing starts when T3 ribbon is green, but price has closed below the ribbon. This is the Ex candle.
The Entry is taken above the high of the E0 candle. Look for constructive price action at this juncture, preferably a descending trendline breakout.
The major part of an exit strategy in swing trading is selling into strength.
Here, we exit based on 2 “sell into strength” components & 1 “trend-following” component.
Here, we exit based on 2 “sell into strength” components & 1 “trend-following” component.
You can scroll down my timeline to review a number of trades taken by me with the SimpleSwing strategy.
The swings are an inherent nature of the markets, so with proper risk management, the strategy is bound to be profitable.
The swings are an inherent nature of the markets, so with proper risk management, the strategy is bound to be profitable.
Here is the link for the Tradingview script of Simple Swing:
tradingview.com
tradingview.com
Hope you find the Simple Swing concept useful. I thank my friend @J250717, without whose help this strategy wouldn’t have seen the light of the day!
If you'd like to read this thread in relatively more detail, find it here:
world.hey.com
If you'd like to read this thread in relatively more detail, find it here:
world.hey.com
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