setups (include trading techniques that you can use to profit in the markets immediately). This is where, support Resistance comes into the picture. Failure test This technique possibly originated from Victor Sperandeo, and the works of Adam Grimes shows that it has a statistical edge in the markets. Swing trading is generally over days or weeks. A stock may exhibit enough initial strength that it can be held for a bigger gain, or partial profits can be taken while giving the remaining position room to run. Rather than consolidations that are typically five to seven weeks at a minimum, you might be looking at half that time or even less.
You can consider dynamic Support Resistance, weekly highs/lows, Stochastic etc. If you are happy with a 20 gain over a month or more, 5 to 10 gains every week or two can add up to significant profits. An example: You took a short trade at resistance area. An example: According to the works of Adam Grimes, trading pullbacks has a statistical edge in the markets as proven here. High probability trading using Stochastic to identify areas of value A big mistake most traders make is, going short just because the price is overbought, or oversold. Instead of following trends, youre trying to predict market reversals. If the breakout volume can surpass the recent activity, that can be a sufficient confirmation of strength.