Winning Edge Trading: Successful and Profitable Short- and Long-Term Trading Systems and Strategies

CHAPTER 12

The Winning Edge System for Intermediate-Term or Swing Trading

The Winning Edge Trading System uses two conditions that can be applied for intermediate or swing trading. As discussed in the previous chapter, we look for two conditions to initiate either a long or short position. When there is a bullish divergence between price bars and the DPO and the RSI crosses under the 30 percent oversold boundary, we have a buy signal. Conversely, when there is a bearish divergence between the price bars and the DPO and the RSI crosses above the 70 percent overbought boundary, we could initiate a short position by selling short the security.

SWING TRADING S&P FUTURES

You could use any timeframe charts for swing trading a security or market. It all depends on the risk level and amount of profits you are looking for. For instance, if you use shorter time period charts such as 30 minutes, you could use a smaller stop loss, since price movements and market volatility are relatively small in 30-minute charts compared to 100-minute or even daily charts. Conversely, using a 30-minute chart for your swing trading would require much larger stops than, say, a 1-minute chart. However, your target profits should vary from smaller timeframe charts to larger ones. In other words, you would exit your position in a 1-minute chart much faster than in a 30-minute chart, whereas you’d exit a position in a 30-minute chart faster than using a daily chart. This is due to the fact that the extent ...