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Multiple Time Frame Trading Methodology on How to Draw Support and Resistance

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Multiple Time Frame Trading
Multiple Time Frame Trading Methodology on How to Draw Support and Resistance, Best Methodology that works on today's market

Having a multiple time frame trading methodology on how to draw support and resistance levels is a great way to supplement your trades using timely indicators as to when to enter and exit trades. It allows for more informed trading decisions, providing more stability in your trades.

This video will tackle a sound methodology on how to use multiple time frames to establish support and resistance levels that work in today’s market which may help you tremendously in your trading career.

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Multiple Time Frame Trading

Welcome to this video on multiple timeframe trading methodology; specifically, how to draw support and resistance trading multiple timeframes. There’s a couple of different ways that people like to do this with multiple timeframes – one would be to look for setups on the daily chart. For example, here on the left, we have a daily chart. By the way, it’s a stock here, but this applies to forex futures, commodities, whatever you’re trading. So people would say, I’m going to look for a setup on the long-term chart but I’m going to drill down to the short-term chart for a very precise entry, and you may be using that for day trading or swing trading. So fine, we find that that low does indeed hold and comes back. Then draw a support level at that line and let’s see what price that is

I’m bringing over my data box for you to get real specific here. That low is 41.36. Then we go over to our five-minute chart in this case, and you might use different timeframes. There we go – 41.36 on our five minute chart, we draw the support level on there and then we say going into the future now, we will be looking if the market comes back into the future: days, weeks, months, we will have a support level there from our long-term chart showing up on our short-term chart. Now, let’s see what happens and how well that works out for us. Little Hint, it’s not going to work out so great. Actually, let me just skip right to that section.

Multiple Time Frame Trading Strategy

So, here we are and this is that same level – 41.36 as you recall, but we’ve moved forward. In fact, that’s quite a bit into the future. However, let’s say that you were trading this particular day and you had the support level there from the daily chart, and it went forward into the future so that if the market ever got back to that level, you would say, I’m going to look to buy there, take profits there, whatever you’re going to do. Or perhaps even sell if it gets below that level, right?

So what happens is in that day the market comes below and doesn’t even seem to acknowledge its existence. It just, for the first hour, goes straight down. Of course, as you can see, it comes back up, goes above it, comes back down, above, holds it a little bit, etc. So, the bottom line is this – when you have these lines that are drawn off of a really long-term chart, a daily chart, and then you transfer that line over to a relatively short-term chart, they don’t provide precise support and resistance levels.

Now, does that mean that you shouldn’t put them on your chart? Absolutely you should have them on your chart, but I treat them a little differently. Actually, let’s go back to the long-term chart here for a minute. We don’t need this anymore. Let’s look at the daily and see how actually that looked on a daily chart. So this is how it looked on a daily chart. A couple of weeks later it came back down and that’s how it looked on a daily chart. So, we’d marked our initial support here – that would be in real time as we’re putting that level on.

Multiple Time Frame Trading System

On a daily chart, this looks great, right? That is definitely a nice bottoming candlestick pattern. It made a lower low, but it had a rejection of value of those lower prices, especially with this candlestick bar, and it headed back on up, so that’s great. But remember, that would be hindsight. If we wanted to trade that later, we potentially could.

That’s a basic concept, nothing really fancy here. The point is when I’m drawing a support level from a daily chart or from a long-term chart to a short-term chart – let’s just say that because I’m not really referencing any specific time intervals. But if they’re really far apart like that, then I will just mark it with a thick line like this in a later line to let me know that that’s what that is.

Multiple Time Frame Indicator

I’ve got that stored in my brain cells so that if I’m looking at it on a five-minute chart and I see this line, I will be like that is from a really long-term chart. Therefore, I do not expect the market to just come down and hold that line. I expect it to have more wiggle room. It’s a zone if you will, so I don’t even like calling support resistance lines, lines. I call them support resistance zones. So this whole zone here, we have to respect and acknowledge that even if it laces through it with dramatic energy as it did, I mean, that’s pretty dramatic energy for just to go like that. You might get the impression that this thing is just going to go south, or you might look for a throwback and then for it to go down.

But the point is here, don’t look for precision at these support resistance lines off of a long-term chart when you see it on a short-term chart. But you still should have them there because those levels are very important. Just figure out your own way of drawing it that makes sense to you and to distinguish it from short-term support resistance levels.

Rubber Band Trade Strategy

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I’m going to give you one of my favorite trade strategies. It is called the rubber band trade, absolutely free with all the rules, all the parameters, the setup, everything. It’s a 26-minute video and you can get that for free by clicking on the image in the top right corner of this video or in the description below the video. Once you do any of those, I will personally email the video to you with the rubber band trade strategy.

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BTW, if you’re interested in the indicator that I use personally for very precise entries and exits. I’m happy to share that with you. Just send me an email at Barry@TopDogTrading.com, and I’ll show you how to get access to that indicator.

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Multiple Time Frame Analysis Trading Strategy

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Multiple Time Frame
Multiple Time Frame Analysis Trading Strategy, trend indicator

Multiple time frame analysis trading strategy is a great way to provide a much more in-depth analysis of the market trend direction for your trading framework. But many traders still don’t know how to utilize this tool to maximize its advantages.

This video will tackle the best tips on how to use multiple time frames that work in today’s market which may help you tremendously in your trading career.

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Multiple Time Frame Analysis

Today we’re going to talk about multiple time frame analysis. As you see here I am using multiple time frames on forex, but this works for stocks, commodities, futures, and options too. Using multiple time frames is very common and I do recommend it. In fact, I do employ it myself. However, one of the biggest mistakes that I see most traders doing is using a ratio of the time frames that are way too far apart. For example, we’ve got a 60-minute chart on the left and a daily chart on the right and that is a 1 to 24-hour ratio. In effect, we’re going to have 24 bars on the 60-minute chart for every bar on the daily. I do not recommend you do that because that will be very lagging.

Now, if you’re trading stocks for example, then it doesn’t trade necessarily 24 hours. During open outcry they trade six and a half hours – you’d have a one to six point five ratios between the two charts. Still to me, not tightly correlated enough. The timing is not synchronized tightly enough. What people normally do is they’ll look for confirmation; they like to trade in the direction of the trend of the longer term time frame. Well, you’re going to have a late signal, a late confirmation. So I like to tighten those up. Let’s just look at a couple of examples here so you can see exactly what I’m talking about. Now, I’ve got a 14-period ADX here, no magic to this 14-period ADX, but people usually like to confirm with trend than the higher time frame and trend is commonly measured by the ADX.

Multiple Time Frame Trading Methodology

Here we would see a threshold of 20 being broken on both time frames at the same time. But if you bought this – of course, you can see that the market continues to go down. Then, let’s look at this here. As I moved my crosshairs over, look on the daily chart and see when it moves to the next bar. I’m moving all of these bars over on the 60-minute chart. And all of this happens – all that price activity happens until they hit literally that bar right there. And that is when the ADX actually gets above the threshold of 20. In the meantime, it’s going down. Well, what I mean first of all, psychologically, that’s going to be really challenging to deal with, right? So, if you get into the market and it moves against you, you will freak out.

It just wasn’t a good confirmation anyway. Some people do it the opposite way. They would say ‘I look for the entry on the daily chart and then I look for a more precise entry – the 60 minute’. Now, I’m looking for my setup on the daily chart – I’ve got an ADX above 20 and now I want my signal over here on the 60 minute. Well, the ADX has already moved up on the 60-minute chart and it is moving back down. So we’ve got to wait for it to get back below the threshold of a 20. And the problem is it actually keeps going up even though the ADX is going down, so markets going up and you’re missing out on all that and now you’re frustrated.

Multiple Time Frame Trading System

Another psychological challenge is the frustration of the market moving all the way up there without ever getting a new trigger on the short-term chart. So let’s move forward here. The ADX gets back above 20 here and again, it’s actually above 20 on both time frames. That looks good, right? It looks great. Except for, again, the same problem on the 60-minute chart, the market actually goes down and we’re stuck with a psychological challenge of hanging in there while the market moves against us watching our P & L go red and it’s not an optimal entry. It is not a very precise, accurate entry. If you want to learn how to nail with precision cycle highs and lows where you don’t get stumped out like this or you don’t have to hang in there while the market moves against you, then just send me an email at Barry@TopDogTrading.com

I’ll be happy to share with you my cycle indicator which has amazing precision – one to one and a half bar range, precision cycle highs and cycle lows, so you don’t have to suffer through that. Anyway, the market goes down. Either you will get stopped out or you will suffer mentally while the market moves against you. And now, we have that signal there – it goes against us, comes back down, and look what happens on the 60-minute chart, comes back down below our threshold of 20. We don’t want to get it. We got to wait. And now it comes back up above, and now we get another signal. But look at all the profit we left behind us now.

Multiple Time Frame Indicator

We’re getting in like midway in the move and this again is going to mess up not only our win-loss ratio but our risk-reward ratio because we’re getting in so late. One of the most common sayings in trading is keeping your losses small and let your winners run. I went out doing either one of those with this technique. Our losses are either big or we’re allowing them to be big because we didn’t know that mark was going to come and turn back up. It could have gone continue to go down and then our losses would be really big. On the other hand, we are not letting our winners run because we’re not getting in at a low enough point in order to get a nice reward, a big win.

So it goes up and we make a little bit on that one. That’s fine but it’s not optimal. And that’s the point – to optimize our entries. Again, we get another long signal here and ADX is above 20. But, again, if you bought there, it moves down, mixed lower lows and then it’s just a mess. Why is it a mess? You’re dealing with a one to 24 ratio and your signals on the long-term chart are not going to give you or either way, whether you’re starting with the setups on the long-term chart or sitting with starting with setups on the short-term chart, the two are not giving you timely signals, so it messes up everything in your trading: your risk-reward ratio, your win-loss ratio, your psychology of having to hang in there.

Multiple Time Frame Trend Indicator

The market moves and even a six or one to six ratio is not good enough. I used to trade one to four ratios. But my favorite now is one to three ratio and I find that that works very well. So when you’re setting up your charts, whatever time frame you’re using, to me, the optimal ratio between the two charts is one to three. And I have found that that gives me very timely confirmations. The signals on the two time frames are very tightly correlated so that I don’t have to sit there and suffer through the volatility of waiting for when chart to catch up with the other.

Rubber Band Trade Strategy

If you liked this video, if you found it helpful, understand that, of course, it’s free. But there is a moral rule in the universe that if you get something good, you should pay it forward.

So, if you did like the video, then the best thing you can do is just click on the share button, share it with others. That’s how you literally pay it forward, share it with others, and also you can click the thumbs up icon. I love that and I especially love your comments so that really encourages me to continue to create more free tutorials for you. Just a nice little comment. Do you want to type in there or a question? I’d be happy to receive those.

Also, as a special gift to you, I’m giving away one of my favorite trade strategies. I call it the rubber band trade and it has a very high win-loss ratio. I’ll give it to you absolutely free, it’s a 26-minute video, and you can get that by just clicking in the image in the top right corner in this video or there’s a link in the description below the video. You can click on that too, and if you’re not watching on Youtube, there’s probably a link below or an opt-in form on the side anyway. When you do one of those, I will personally email the video to you with the rubber band trade strategy.

GET MY FREE MARKET ENTRY TIMING INDICATOR

BTW, if you’re interested in the indicator that I use personally for very precise entries and exits. I’m happy to share that with you. Just send me an email at Barry@TopDogTrading.com, and I’ll show you how to get access to that indicator.

What did you think of this tutorial on Multiple Time Frame Analysis Trading Strategy? Enter your answer in the COMMENTS section at the bottom of this page.

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Also, I’m giving away one of my favorite new Multiple Time Frame Analysis Trading Strategy tutorials. Just fill out the yellow form at the top of the sidebar on the right. Once you do that, I’ll personally send you an email with the first video.

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How To Use Parabolic SAR Strategy Effectively

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Parabolic SAR Strategy
How to use parabolic sar strategy effectively, best parabolic strategy in trading

Trading Indicators such the parabolic SAR strategy indicator are a great way to better analyze market movements and supplement your trading methodology. One example, and which is relatively easy to use indicator, is this Parabolic SAR Strategy Indicator.

In this video, we will tackle how to effectively use this indicator order to maximize your trades.

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Parabolic SAR Strategy

Welcome to this video on how to use Parabolic SRA Strategy effectively. This is an indicator that a lot of people really like. Its concept is one of the most simple and easy to follow indicator. SAR stands for stop and reverse. Some people consider it a trend following indicator. So, what we’re looking for here is this – as long as these dots are above price, then we’re short. I’m going to simplify things here, maybe oversimplified. Then when the dots go below price levels, then we go long, a bullish signal. The other thing that’s kind of nice about this is that it creates a trend following indicator. The parabolic SAR strategy is to go short when dots are above it and long when dots are below the price.

Then, it also serves as a trailing stop. So, you just follow this along. As long as the price dots stay below the candlesticks, then stay long. Now see here, of course, nothing’s perfect and everything has its own little parameters. Whatever perfect parameters you think you’re going to come up with will never be perfect for every situation. So, here we get one that goes above and comes back down below within one bar. That would have stopped and reversed you out. That’s one of my issues with the indicator; I don’t like the term stop and reverse because it implies that trends that go up and go down – that’s not typically how trends actually go. So, to stop and reverse means that you stop out of your long trade and you go short the downtrend.

How to Use Parabolic SAR Effectively

But really what seems to happen most of the time in markets is, but more often, we get enough trend and then the market kind of goes sideways for a little while. So, reversal trades usually have a worse than 50 slash 50 win-loss ratio narrative. After this, we go sideways for a while and say, okay, well then I’m to go with short. Not necessarily, sometimes it’ll continue into an uptrend. So, I don’t like this whole concept of SAR stop and reverse and calling it that – sorry to the classic technical analysis fanatics. But that’s my personal opinion, feel free to disagree with me. It’s a free country, a free world. Well, the whole world’s not free, unfortunately. But anyway, you have my permission to disagree with me, type your comments in the comments below if you do, and I’m a big boy, I can deal with that.

Then let’s take this off of here and see what happens. You can see now that we run into some problems – let me just narrow this down a little bit, let’s change our scaling. So, we had the first example I showed you looked pretty good, right? So it kept us into that trend – let me go back there first a little bit and just show you that again. That would have worked out real nice. So, just like most trend trading techniques, they all look great; a lot of indicators will look fantastic as long as you’re on a trend, and those are the kinds of examples that they’ll put in their textbooks and their videos and all that kind of stuff. That’s beautiful except for one problem – the markets don’t trend most of the time. So, I don’t know what the exact steps are anymore.

Best Parabolic SAR Strategy

They vary. I’ve heard, well 30 percent, I think that’s aggressive. I’ve heard 20 percent. Lately, I’ve heard markets only trend about 15 percent. I do believe that the markets are trending less and less frequently. And, by the way, when this indicator was created, it was actually before the time of the computer age. So, let’s also be clear about that. When the computer age came in, then market started trading very differently; price patterns changed differently or started forming differently. So, if you trade methodologies based on techniques that were developed before modern computer technology entered the markets, you’ve got a big problem, it’s not going to work for you. Anyway, what would have happened here is what is typical.

So, I showed this one little dot here and then it goes back down – we are now supposed to be in an uptrend. And then the dots go back above price bars and we’re supposed to be in a downtrend. But the market didn’t really go down, did it? Then the price comes below the price bars, so now we’re supposed to go up – well it didn’t go up that much. And then the indicator goes above the bars. But the market actually ends up going up while the parabolic SAR is above it. This is the problem. You get this kind of stuff happening when you’re in a non-trending market; by the way, the definition of trend is not direction. The definition of trend is not higher highs and higher lows.

Parabolic SAR Trading System

Anybody’s told you that those are wrong definitions and they will mess up your trading because a trend is defined by Webster’s dictionary as the extended direction of, well, anything. So, extended general direction means a long-term move. These are short-term moves in there for none of these are trends, and that’s why I personally and heretically do not consider the parabolic SAR to be a trend indicator. It does not indicate long-term moves as demonstrated here. And you will see this, you might say, well, that’s just one example – fine, pull up your own charts and you’re going to see plenty of examples like this. So, in my mind, it is not a trend indicator at all. Can it be a decent trailing stop at times in trail, in trending markets? Yes, it can be. Okay. I still don’t prefer it as a trailing stop. Why,

because, for example, it starts too far away from the market. So, here is our first signal on that bar right there; look how far away it is. Sure it tightens up. But my initial protective stop is too far away – I don’t want it to be that far away initially. Anyway, it can be used though. But the point is it can’t be used alone and in fact, no indicator, and I’m not trashing the parabolic SAR. No one indicator will make you money, not this one, not stochastics, not MACD, not RSI, and not CCI – no indicator makes you money. They’re indicators. And so what’s an indicator? Well, the answers and the question – they indicate! What they don’t do is make you money directly.

ADX Parabolic SAR Strategy

Otherwise, we would call them moneymakers. So, can it be helpful in your trading? And the answer is yes, it can be helpful as part of a complete trading methodology. As I’ve implied here, it can work pretty darn well in those we’ve actually seen it can work pretty good for a trailing stop, especially after the market starts moving a bit – I don’t like its initial protective stop and there’s the market starts moving a bit. Yes, it can be a pretty decent trailing stop but only in trending market and it does not define a trending market. Therefore, one of the things that we will have to add to it is a trend indicator of some sort. You can use whatever your favorite trend indicator. But, for today’s purposes, we’ll just use the ADX. All right, so let’s pull up the ADX.

So now, I’ve added a 14-period ADX to my charts here and in ninja trader they call DM; that actually adds DM plus and DM minus, and I just want to keep things very simple for you today. And I put it at a threshold of 20. So, this black horizontal line here is set at 20. Basically, when Adx gets above 20, then it’s considered a strong trend. Now we’re adding the two together. We’re not going to depend on Parabolic SAR for a trend, we will depend on ADX in the example, and here is the spot where it goes above. Now, you’ll notice that it doesn’t normally nail specific swing highs and swing lows, and once in a while it will but periodically or typically, it won’t. Most trend indicators are by definition lagging indicators and there’s a reason for that.

Parabolic SAR Indicator

The definition of a trend is the extended general direction of the market. Therefore, you can’t have a trend indicated until there’s enough data to establish that you’re in an extended general direction, and, therefore, it is lagging mathematically. But if you get into a trend like this, so then it is. So Parabolic SAR, there is the input that I’m using for that and for the ADX – you can see ADX here, and I’ve got the positive and negative blacked out. I don’t want to see those right now.

But it’s a period of 14, right? You can experiment with different periods, you can experiment with different threshold lines. I’ve got it at 20 – different people use different periods. What we do here is we say now we’ve got a trend established at this point and we will use this as our trailing stop; our Parabolic SAR as our trailing stop. Not going to use it as a stop and reverse necessarily. Now what you’ll also notice is that the ADX starts coming down here and that’s also a kind of a little signal that maybe we have put in a high, so this whole situation here where Parabolic SAR went above the bars, then below the bars then above bars real quick – we also see a confirmation of that here on the ADX where it’s a diverging in starting to come down.

Parabolic SAR Settings

So, it just comes down. Now, the one thing I don’t like about the ADX is that it doesn’t indicate a trend after you got to the top coming back down, you’ve got to wait for it to reset below the threshold line, in this case, 20. So, this does not indicate a downtrend just because it’s coming down and therefore you got to wait this period all this period to the indicators really not telling you anything other than maybe indicating that it’s good to get out of your long trade, but now you got to wait for it to reset before you get another trade signal.

A lot of time can go by, as you see this is a daily chart and you know, a couple of months go by. Then, by the way, just to show you what we showed before, all of this noise here that we looked, if we look at that noise and you say, wait a minute up, gave us a long signal here, short signal here, etc., that whole time ADX was, first of all, declining back down to the zero line and then it stayed below the zero line indicating that there is no trend.

Rubber Band Trade Strategy

Therefore, we don’t want to use the parabolic SAR in that situation. So, this is where you combine different types of indicators for different purposes in order to develop a successful trading methodology. So if you liked this video, if you found it helpful, please understand, it’s free. But, if you got some value from it, you actually have a moral obligation to pay it forward and click the beautiful share button below. In fact, sharing the video is really the best way that you can pay me back for giving you all the free tutorials that I’ve given you, now over a hundred free tutorials. Also, if you’re watching this on youtube, go ahead and click the thumbs up icon.

That’s really easy and I love your comments, so please leave your comment because that actually encourages me to create more free tutorials for you. I’m going to give you also one of my favorite trade strategies called the rubber band trade, which has a very high wind loss ratio. It’s a simple trade. I’ll teach it to you in about 26 short minutes on a video that I have for you also absolutely free.

So, get my rubber band trade strategy for free by clicking on the image in the top right corner of this video or in the description below the video. If you’re not watching on youtube, then there’s probably a link below or on the Optin form on the side, whichever one of those ways you choose to request the video, I will personally email the video to you with the rubber band trade strategy.

GET MY FREE MARKET ENTRY TIMING INDICATOR

BTW, if you’re interested in the indicator that I use personally for very precise entries and exits. I’m happy to share that with you. Just send me an email at Barry@TopDogTrading.com, and I’ll show you how to get access to that indicator.

What did you think of this tutorial on How To Use Parabolic SAR Strategy Effectively? Enter your answer in the COMMENTS section at the bottom of this page.

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Also, I’m giving away one of my favorite new How To Use Parabolic SAR Strategy Effectively tutorials. Just fill out the yellow form at the top of the sidebar on the right. Once you do that, I’ll personally send you an email with the first video.

Those interested in How To Use Parabolic SAR Strategy Effectively video that works in today’s markets also showed an interest in this video:
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How To Choose Stocks For Swing Trading

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Swing Trading
Choosing Stocks For Swing Trading Best Practices

The goal of trading of all types and sorts (i.e Swing Trading, Day Trading, etc.) is to, basically, maximize revenue while minimizing risk. Most of the time, however, traders are caught up with investing in risky stocks that could potentially lead them to loses due to, of course, lack of information and knowledge in dealing with market cycles.

In this video, we will tackle the ways on how to choose stocks for Swing Trading that would maximize your trading.

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Swing Trading

I am going to share with you three primary ways to choose stocks, to pick stocks for swing trading; being defined as basically short-term trading but not day trading. So we are definitely holding overnight, often two, three days, sometimes even a week or more, but not getting into long-term investing. So here are the three different approaches that are most commonly used for choosing stocks for swing trading. Number one is just choosing a few stocks that you really like. This is very popular with some people where they say, you know what, I’m going to just really learn maybe three to five different stocks, and those are the only ones going to trade. And one of the things you’ll often hear them say is I’m going to get to learn their personalities and that way I’ll get used to them and how they move.

Because with a lot of repetition of trading, I will understand those particular stocks, their personalities in air quotes. I can’t say that it isn’t a possibility to do because I’ve seen it done, but my problem with it primarily is that a lot of markets, a lot of stocks, especially equities, they move in cycles like all markets move in some type of cycle. So, for example, they’ll trend and then they’ll go into a non-trending cycle which is going to consolidation and be directionless for a while or they’ll go through a high volatility period and then a low volatility period. So if you’re just trading stocks that are part of a major index such as the Dow or the S&P 500, the Nasdaq, quite often they’re going to be moving in a similar way. Therefore I find that I just don’t get as many opportunities that way.

Swing Trading Strategies

Then number two is one that I do engage in and that is ‘having a basket of non-correlated markets’. So, the key to this is that the markets are non-correlated so you can have even bring-up a long list here. Here’s actually the list that I will send you and I’ll send it to you in text format if you’re interested in it for free, no opt-in or anything, just request it and I’ll include it in a text format so you can cut and paste because the symbols may be different than on your targeting platform. And I also include what that symbol means. So if you have trouble finding the exact symbol, then you can at least know what it means and find out from your data provider what that symbol is.

So see, we’ve got cash indexes. These are our basic indexes here. Then we’ll get some leveraged ones and then I go down to currencies. Well, those are futures there, but today, since we’re talking about stocks, you can trade currencies that are exchange-traded funds and so here they are all right. And then we got our heavily traded ones or are more lately traded ones and then we go to other countries and these are again, basically, most of them are iShares. And we can trade, well what’s going on in different countries like Australia, Canada, Sweden, Germany, Hong Kong, the UK, when markets might be taking off another one in another country depending on its economy and its stock market may not be doing a very well.

Swing Trading Signals

These are primarily different sectors and industries. So you’ll see here we’ve got biotech, agriculture, Base metals and we’ve got China mixed in their gold. I always throw in Google healthcare, internet broker-dealers, et cetera, and that’s what this is – to find different sectors and industry. So the bottom line with this approach, the logic of this approach is now, you’ve got a lot more markets to watch, and some are correlated but a lot of them are not. You’re going to get more opportunities for trading because while one market might be in a non-trending cycle, then there’s another one that is trending like crazy or one that’s very low volatility and just not really moving and another one is moving and just going like gangbusters and blown the doors off the market.

So the idea here is, I’ve often quoted where it says, there’s always a bull market somewhere and a bear market somewhere, or say Jim Cramer even says there’s a raging bull market somewhere and there’s always a raging bear market somewhere. So you look through these various non-correlated market. This is something I always do. I always have this watch list up and when I’m swing trading, I personally, I do day trading. So I don’t really do any swing trading during the day. I just look at the end of the day after my day trading is done, I’ll take a break, then I’ll usually get some lunch and maybe it could work out and then I come back and I’ll look at the daily charts and I’ll compare these various markets. So it’s a little bit manual.

Swing Trading Methods

The downside of this is that you got a lot to look at. Of course, you don’t have to look at all of these markets. You can shorten this list. But let me show you one that’s a little trickier. So what I do is I have put the various markets than looking at it. It’s called the market analyzer here, but the more traditional term for it is a quote sheet. And let me pull this down for you here a little bit, here you go so you can see it. But that’s just the Ninja trader term for the market analyzer. Anyway, it’s kind of like a quote window and various trading platforms have various functionalities for these. But one cool thing is I’m going to have to squeeze this over so it’s going to look really weird now, scrunched up.

So let’s say that I want to go through this list and I want to see the charts for them. So a lot of trading platforms have this by the way, not just Ninja trader where you can link the windows together. And so you’ll click on here and see all these different colors. I’ve got them red. That means if I go over here and let’s say I want to look at Disney now. It’s Ebay over here, right? So I say I don’t wanna look at Ebay. When I look at Disney I just click on that and it brings up Disney and that’s because I have the two windows linked together with the same color. Thus, I can actually go right down the list and just check them one by one and it pulls them up one by one, as you can see that’s actually an apple.

Swing Trading Guide

And then just click all the way down through them. And that helps me save a lot of time rather than manually typing in each symbol. Another thing I’ll point out here too is, again, some trading platforms have this and some don’t. But on ninja trader they’ve got a nice thing with market analyzer here where you can create these columns. And you can actually put indicators in there so that I don’t have to go through the whole list now and again, that’s a time-saver. So I can say, OK, a trend. Well, I’ve got the way I measure trend and what is the trend, is it up or down? If I’m looking for up trends and what wave are we? So, here we’re in, which wave I’m in, I’ve got all these other parameters in there for that I use specifically for my trading methodology.

So then I can just look at certain things to know the words and I don’t have to look at every single one. I know I’ve got my cycles in there. Let me pull this back for you. Cycles are a big issue for me because cycles tell you when to get in, when to get out, and the optimal time so you don’t get stopped out. So this is very important. And now the cycle indicator here, it’s an up and I’m looking for hookups. So again that’s more than I can explain in this video. It’s not really on topic, but if you’d like my cycle indicator, I do have a webinar where I give that away for free. The cycle indicator not only works on Ninja trader, it actually will work on any charting platform I’ve ever seen.

Swing Trading Analysis

Anyway, don’t want to believe at that point again. So last one way. This video is lasting a long time, but that’s OK. Want to share a lot of good stuff with you. So the third option is to scan. We’ve kind of gone into half of the scanning here with this, right? So this is a little bit of scanning but it’s not really, I’m technically scanning. It’s kind of a hybrid between having our basket of stocks or our watch list and putting certain indicators in there.

But then you can get even more specific with scanning. So let’s talk about that real quick. The third type of choosing stocks for swing trading, we’re going to use a scanner or sometimes it is called a screener. And what’s cool about this is you can put in very, very specific parameters. Now, this is just a general one here – by the way, this is a thinkorswim, so all this is just like a simple, not chewing on complex number, but the basic thing I’m looking for is right here. So we’re just looking at this, and this is the primary thing I’m looking for. We’re only looking for stocks where the price is above the upper band of the Bollinger band. So it says that the upper band is less than the close. That means that the market closed above the upper band of the Bollinger bands.

Swing Trading Technical Analysis

So it’s showing a lot of strength to the upside. Now, I also included a few other parameters here and different timeframes as well. That’s the cool thing about this is that, uh, you can put this on different timeframes and not just on one timeframe. So this is a pretty good one. I’ve got out of the scans that I like better, but the point is when you’re using a screening or scanning, then you can really narrow down. So let’s say, for example, that you have certain trade setups that have a list of rules, you can enter all those rules into your screener or your scanner and only bring up a stocks that meet those rules. So while, let me just bring up another one here. And the Nice thing about this is it’s pretty fast. So what did we do there?

This one’s good. So let’s see, this is where momentum is. Now, I got to click this scan button here and as you can see, I’ve got more parameters at this time. And so this one is where the market is, has a bearish momentum on three different timeframes all at the same time. So that is what’s valuable about this is that we’re using multiple timeframes in that the. And so we got one, two, three, four, five, about 10 of them that showed up. So it scans through like 10,000 markets or you can start with whatever, you know, you can say, well, you don’t want to have all stocks. Maybe you want to do what I have. All that’s optional because I don’t, I like to read the options and it goes through all 10,000 and it just gives you a little list.

Swing Trading Tools

Then you’d pop these up and we can look at them on the charts as well. So, the first thing I would do, if you want to do this, it’s probably the shortcut up, the fast way to find good setups and based on whatever trading method you’re using, whatever rules for your trade setups. And I would first go to your trading platform software provider, whether it’s thinkorswim more trade station has this function available to and some others. So some do and some don’t. Finviz, I’ve heard it is pretty good. I’ve never used it. A stockcharts.com, again, it’s a good platform but I’ve never used it for scanning and uh, the one that I would use.

And then I often do use is called stockfetcher.com and that’s totally separate. So even if you don’t have it on your trading platform, that’s like an $8 a month or something, the last time I looked, it’ll look at parameters on multiple timeframes concurrently. Also, it calculates everything really, really fast and you can put in all kinds of parameters so flexible. By the way, I have no financial interest in any of these, so just look them up, Google them, go there, not an affiliate link or anything that I’m giving you here. So I’m going, OK, so that’s a little longer video today, but those are the three primary ways that I have found that I’ve heard other people using for choosing stocks for swing trading.

Rubber Band Trade Strategy

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