Lesson #5 Lesson #5 -- The 11 Commandments of Swing Trading

Lesson #5 -- The 11 Commandments of Swing Trading
My, we sure have come a long way since our first trading lesson! For starters, I'd like to thank you for
giving me the opportunity to teach you a bit more about my trading methodologies and technical
analysis as I practice it, as well as a chance to introduce you to my premium weekly investing
newsletter -- the StreetAuthority Swing Trader.
In today's final lesson I'm going to begin with a recap of Lessons #1 through #4. After that, I will
provide you with a final lesson that should prove to be the most comprehensive and valuable yet -The 11 Commandments Of Swing Trading.
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A LOOK BACK AT OUR PREVIOUS TRADING LESSONS
THE 11 COMMANDMENTS OF SWING TRADING DEFINED
THE 11 COMMANDMENTS EXPLAINED
CONCLUSION AND A LOOK AHEAD
(1.) A LOOK BACK AT OUR PREVIOUS TRADING LESSONS
In Lesson #1 I introduced you to the relationship between swing trading and technical analysis. The
better you become at technical analysis, I noted, the more efficient and profitable your swing trades
will be. I showed you how important it is to recognize the trend in the time frame you are trading. I
used the example of Silicon Image (SIMG) to show you what a great swing trading set-up looks like
and how with trades like this one you could reap profits of 50% or more in just a few trading
days/weeks.
As a journalist and educator, I noted that my commitment to you was twofold. First, I would scour the
markets and share the best trades I could find with you each week. Second, I would teach all that I
knew from my more than 30 years of technical analysis study.
In Lesson #2 -- The Power of Trendlines -- I began to fulfill this teaching commitment as well as to
show you how I uncover profitable trades. Although there are many, many tools in the technician's
toolbox, the simple trendline, I asserted, is still one of the most powerful.
You were shown how to recognize an uptrend -- a series of higher highs and higher lows -- by
labeling peaks and valleys. When this pattern reversed itself and became a series of lower highs and
lower lows -- a downtrend -- it was time to nail down profits. You then became better acquainted with
the trendline and received clear directions on how to draw both simple and complex trendlines. My
goal was to present this information to you in a clear, easy-to-follow, step-by-step way (something
that is very difficult to find either in books or on the web).
I then showed how just by using this one tool, the swing trader could harvest significant profits in a
short period of time. For those interested in honing their skills, I presented a practice chart for KLACTencor (KLAC) and asked you to interpret its trend. In my subsequent lesson I provided an "answer"
to that chart by defining two profitable trades on KLAC based upon the very simple principle of
buying on the break of the downtrend line and selling on the break of the uptrend line. In the first
trade I went long; it yielded profits of more than 55% in just over a month. The second trade I went
short and gained 33% in about 30 trading days.
In Lesson #3 -- A Swing Trader's Secrets of Support and Resistance -- I showed you how you can
use support and resistance to earn substantial profits. I began by demonstrating how support and
resistance come from a variety of sources, such as moving averages and trendlines. However, I noted
that they are mainly detectable at horizontal levels above or below the present price.
Next, you learned about how an uptrend consists of a period of sharp movement -- the reaching of a
peak -- and then the drifting back toward the previous price level as profits are taken. Finally, I
explained that the uptrend can resume only by breaking through the peak that had at first turned it
back. You saw how this insight could be both profitable and could create low-risk entry points for
you.
I then showed you the difference between simple and significant support and resistance -- a
distinction I have not seen made in any other technical analysis works. In weak markets, I argued, you
can initiate profitable and safe swing trades on the break of support. In strong markets, you should
buy on the break of resistance, particularly when the volume signature supports the trade. I then
introduced you to just two of the dozens of classical technical analysis price patterns, and you saw
how recognizing and trading on these patterns could help you multiply your trading capital many
times over.
In Lesson #4 -- Swing Trading By Candlelight -- I explored another aspect of technical analysis by
showing you how I use candlesticks in short-term trading. By recognizing a handful of candlesticks,
you learned how to potentially call every major turn in the S&P 500 in a six-month period. At
every major turn, I showed you how candlesticks provided an early warning indicator, one that
foreshadowed a change in trend even before the trendline broke. Even though we covered only a few
of the many technical tools available in this trading course, I demonstrated to you how the principle of
multiple indicators could assist you in making safe and profitable trades.
In today's final lesson, my goal is to provide you with an in-depth look at my trading strategy, tactics,
principles and attitudes. I use these exact same strategies to uncover profitable trading opportunities
for my StreetAuthority Swing Trader newsletter each and every week. By studying and incorporating
them into your existing market framework, they should also help you execute your own winning
swing trades. I call these my "11 Commandments of Swing Trading." Here they are...
(2.) THE 11 COMMANDMENTS OF SWING TRADING DEFINED
1. Always align your trade with the overall direction of the market, which is best
measured by the S&P 500. When trading "industrial' stocks, do not fight the major trends.
A strong stock will typically make little headway in a weak market. Meanwhile, a weak stock will
often underperform even in a bullish period. With this in mind, you should always clearly determine
the market's primary and intermediate trends before you pick any individual stocks to trade. (And by
an "industrial stock," I mean those highly correlated with the S&P, such as manufacturing, financial
or retail issues. On the other side of the coin, "resource" stocks such as gold or oil are often inversely
correlated with the major averages.)
2. Go long strength. Go short weakness.
Once you know the overall trend, do not fight the tape. Look for long trades during periods of
bullishness. Find appropriate short trades when the bear is on the prowl.
3. Always trade in harmony with the trend one time frame above the one you are trading.
Sure, we've all heard the cliché -- "the trend is your friend." But which trend are people referring to?
Use moving averages to be in tune with both the short- and intermediate-term trends, even through as
a swing trader you are only trading for the short term.
4. Never trade only on the short-term chart of the swing-trading time frame. Be sure to
SYNTHESIZE the messages that the weekly, daily and even hourly charts are telling you.
Use your telescope as well as your microscope when you look at charts. Too small a lookback period
-- using the microscope only -- can be very deceptive and costly.
5. Strive to enter the trade near the beginning of the trend, not near the end.
It is never too late to hop on the elevator. If the market is headed from the 95th floor down to the 78th,
you can still profitability climb on board (short) on floor #83. But the quicker you recognize that a
trend has begun, the more profitable your trade will be and the less risk you will assume.
6. Always apply the rule of "multiple indicators." Do not trade on any one technical tool
or concept in isolation.
Highly profitable trades usually occur when all available technical tools give the same message.
Candlesticks, volume, moving averages, and indicators such as stochastics and MACD occasionally
all align to communicate the same message -- the stock is about to sharply rise or fall.
7. Keep your eye on the ball. Track a consistent group of stocks.
As a swing trader, it is easy to flit from hot stock to hot stock. Although it's okay to follow the action,
you should also have a core group of stocks that you track daily and learn the personality of.
8. Always enter a trade with a clear trading plan. The four key elements of the plan are a
target, a limit, a stop loss and an add-on point. And when you sell, you should immediately
determine a re-entry level.
Swing trading can lead to impulse buying. Sometimes your impulses can turn out to be profitable, but
other times they may not be. Remember: without a clear plan you are merely gambling, not trading.
9. Strive to put the odds in your favor. Ask yourself, "Does this trade have a 2:1
risk/reward ratio?"
Don't risk a dollar to try to make a dime. On good trades, your chart analysis should always show
more upside possibility than downside risk.
10. Be a "techno-fundamentalist," not just a technician. Integrate fundamentals into your
technical analysis.
Day traders in positions for 15 minutes to an hour have little need for fundamentals. Swing traders, on
the other hand, may often hold positions for several days to several weeks. As such, they can greatly
benefit from a better understanding of each company's fundamental, inherent value.
11. Master the "inner game" of swing trading. Great trading is psychological as well as
technical.
Always keep a positive mental attitude about your trading. Do not let bad trades affect you longer
than necessary. Learn from your mistakes; poise yourself to make your next trade.
(3.) THE 11 COMMANDMENTS EXPLAINED
1. Always align your trade with the overall direction of the market, which is best
measured by the S&P 500. When trading "industrial' stocks, do not fight the major
trends.
Every week in my StreetAuthority Swing Trader newsletter, I begin by discussing the market's
primary and intermediate trends as measured by the S&P 500.
These trends provide the context in which every swing trader must make short-term trading decisions.
If you focus only on the short term, then although your trade may be successful for a limited time
period, the larger trends are apt to reassert themselves. At best, your profit potential will be limited.
As such, you need to identify the longer-term trends to make sure you go with the flow and not
against it.
Over the years, I've observed that "surprises" such as news announcements, analyst
upgrades/downgrades and earnings hits/misses almost always occur in the direction of the larger
trends. Swing traders should always be cognizant of where the S&P stands in relation to its longerperiod moving averages, such as the 40-, 30- and 10-week. Below I've presented you with a historical
chart of the S&P 500. Note how except for very brief periods of time, the long-term trend (as
measured by the 30- and 40-week moving averages) and the intermediate trend (as measured by the
10-week moving average) remains a downward one.
2. Go long strength. Go short weakness.
Let's assume for a moment that the bear is on the prowl. The 40- and 10-week moving averages are
both sloping downward and the S&P is beneath both. In this scenario, you should always look for
stocks to go short, NOT to go long.
Always incorporate Price Relative to the S&P 500 ($SPX) into your chart analysis. This indicator will
tell you how the individual stock is performing in relation to the overall market. During bear markets
you should seek out stocks whose relative strength line is trending downward in relation to the S&P.
Do the opposite during bull markets.
Below you'll find a historical chart of H&R Block (HRB). This short, which I recommended in early
2003 during a period of market weakness, turned out to be a very profitable trade for StreetAuthority
Swing Trader readers. During a period of S&P decline, HRB's relative strength was weakening in
relation to the market.
3. Always trade in harmony with the trend one time frame above the one you are
trading.
Many short-term traders focus their technical analysis exclusively on the short-term chart. However,
this type of technical analysis will always end up being partial or limited because these traders do not
see the big picture.
On the other hand, you should not focus exclusively on the primary trend when swing trading. Even
in a bear market, there are periods where the intermediate trend turns positive and stocks soar. These
bear market rallies can be enormously profitable. Fueled by short covering, the S&P 500 and other
major averages can climb 20% or more in a period of just several weeks. Meanwhile, volatile stocks
with high "betas" can move much, much more than this.
Even though you are a short-term trader, it is vital to know when the intermediate-term trend is
changing and a countertrend rally is taking hold.
Below you'll find a historical chart of the S&P 500. Coming off deeply oversold levels each time,
you'll note that this chart presented traders with three very tradable countertrend rallies. Each was
forewarned by certain "signatures" left by Bollinger bands, stochastics, MACD, RSI and several other
technical tools that I use on a regular basis.
In my weekly StreetAuthority Swing Trader newsletter, I always monitor these trends for you and
alert you when the intermediate trend is about to turn. Moreover, in each weekly issue I dedicate
several pages to teaching you how to better use these tools yourself so you can make better
independent decisions.
4. Never trade only on the short-term chart of the swing-trading time frame. Be sure
to SYNTHESIZE the messages that the weekly, daily and even hourly charts are
telling you.
My first step when analyzing a stock is to look at a two-year weekly chart. I examine the shares in
relation to a long-term moving average and determine the overall trend. This weekly chart is ideal for
examining the big picture.
Next, I focus on the 6-month daily chart. Here, I can see finer details that the weekly chart obscures. I
use much shorter-term moving averages to ascertain the stock's short-term trend.
Finally, I often hone in on the hourly chart to discern the prevailing trend over the last couple of
weeks. Again, moving averages are extremely helpful here.
My final step is to synthesize all of this analysis. Is the stock telling me a clear, relatively
unambiguous story? Are the shares breaking out from resistance or breaking down from support with
confirmation from volume and other indicators such as RSI? Is this story sufficiently similar in all
three time frames? Have I interpreted the story early enough so that I can go short or long with solid
profit potential and minimal risk?
In the two historical charts (weekly and daily) below, note that Dentsply (XRAY) formed a double
top in late October 2003. This made a very profitable swing trade for those who recognized this
formation. Had you shorted on the break of support at $37.50 and covered at the next support level
down ($32.50), then you could have made an impressive +13.3% in just one short month!
Not all stocks communicate quite this clearly though. In fact, some remain in extended periods of
sideways consolidation. A symmetrical triangle formation, for instance, is almost impossible to
predict and trade. Similarly, an MACD that gives signal after signal in a short period of time is a
totally unreliable indicator.
5. Strive to enter the trade near the beginning of the trend, not near the end.
The earlier you pick up on the change in trend, the less risk you will take and the greater your profits
will be. The most important step here is to pay close attention to the overall market averages. When
they are overbought or oversold, they are usually prone to reversal.
Researchers and analysts have developed a variety of indicators to detect when the broad market is
prone to a reversal. Some of these include the McClellan Oscillator, the Arms Index, the Volatility
Index and the Put/Call ratio. When the market tests a major zone of support and resistance it is very
useful to look at new highs and new lows and the advance/decline line. I often discuss and interpret
these indicators in my premium StreetAuthority Swing Trader newsletter. If you chose to sign up for
a longer-term subscription to my newsletter, then you'll certainly benefit from further in-depth
discussions of these indicators in my weekly "Inside The Black Box" column.
Most "industrial," or non-resource (papers, metals, oil, gold) stocks are highly correlated with the
direction of the overall market. Therefore, when the market turns they are likely to turn as well.
Candlesticks and momentum indicators such as RSI and stochastics are what I describe as early
warning lights. They often anticipate or lead a turn in the stock.
By contrast, trendlines and moving average crossovers are lagging indicators that merely confirm the
message of the early warning signals. Depending on your willingness to take risk, you can trade on
either a leading or a lagging indicator. When both types of signals have been given, you generally can
enter the trade with a high probability of success.
6. Always apply the rule of "multiple indicators." Do not trade on any one technical
tool or concept in isolation.
On a leading swing trading website, I found the following advice under the heading of "20 Golden
Rules for Traders" -"Buy at support, sell at resistance." Take another look at the XRAY chart above. Do you really want
to buy at support, see it decisively broken, and take a bath?
Unfortunately, I've found that most swing trading information is long on gimmicks, but short on
useful, well-thought-out information. Remember: THERE IS NO MAGIC BULLET FOR
PROFITABLY TRADING THE MARKET. As I noted in my very first trading lesson, technical
analysis can only increase the probability of your making a correct swing trading decision. Nothing
is 100% accurate, and there is no such thing as "free money."
Great trading opportunities, however, do have signatures. For starters, many indicators all give the
same message within a short period of time, such as two or three days. Below I have reproduced the
Silicon Image (SIMG) chart from my very first trading lesson.
You should now have learned enough about technical analysis to better appreciate this opportunity.
The October $2.20 low occurred as the market turned violently upward. The bottom candle was a
long-legged doji and occurred at a very oversold level.
The next large, white candle dramatically confirmed the trend had reversed. Volume picked up on the
rally and declined on the pullback. CCI, RSI and stochastics all gave buy signals. In five trading days,
the downtrend line was broken. Even buying later in the trend, on the break of the downtrend line at
about $4.25, yielded a spectacular return if you held on to the peak above $7.
This is what I mean by applying the rule of "multiple indicators." This trade was not signaled by
applying any one tool. Instead, many, many tools confirmed the same underlying message.
7. Keep your eye on the ball. Track a consistent group of stocks.
One of the first things I do when I check the market in the morning is focus on the financial news. I
go to a variety of websites to look up analyst upgrades and downgrades, earnings reports and
guidance, what is happening in the overseas markets and with the price of oil, gold and the dollar,
etc... I also look eagerly to see which stocks are active in pre-market trading and usually add several
of these to my regular tracking screen. I LOVE volatile, heavily-traded stocks.
In addition to these, however, I always follow a core group of regulars. I try to pick these from a large
variety of sectors -- not just the volatile tech group. Several times a week, I look at their charts and
make mental notes about breakout levels, prices at which they would make good trades, etc...
Intraday, I watch how they behave and try to get a feel for their personality.
I call this "keeping your eye on the ball." By tracking a comfortable number of stocks in a portfolio
package (we offer free quotes and portfolio tracking on our "Resources" page at StreetAuthority.com),
regularly checking the charts, following the news and analyzing company fundamentals, you will find
yourself in a much better position to make winning trading decisions.
8. Always enter a trade with a clear trading plan. The four key elements of the plan
are a target, a limit, a stop loss and an add-on point. And when you sell, you should
immediately determine a re-entry level.
Capital preservation is key in trading. Therefore, it's always vital to establish a stop loss for each
trade. The best time to set one is right before you make the trade. If you are not watching the market
intraday, then you should set this stop loss with your broker. If you are watching at all times, then I
suggest you keep it as a mental stop, but execute it ruthlessly.
As a general rule, the maximum loss I want to take on any trade is 8% of the capital invested. If there
is no technical analysis basis for limiting the stop loss to this amount -- usually a support level or
nearby trendline -- then perhaps the market is informing you that your trade is late. I have a lot more
to say on the art of setting stops, including using trailing stops, in my weekly "Inside The Black Box"
column.
For most of my trades, I use market orders and normally trade very liquid issues. And if I am
watching the market, my order size is not large enough for it to be worth my while to fight over a few
pennies in either direction. On the other hand, if I am not watching the market and want to enter a
trade based on overnight analysis, then a limit order is vital. Of course, if the market gaps, then I don't
want to pay too much and be behind the eight ball from the start.
You'll often come across times when a trade is going beautifully. You are watching the trade closely
and have a very good instinct for the trading action. You can almost feel the next price, you are that
attuned to the shares. In those circumstances, why not add to your position? If you originally bought
1,000 shares, then you might want to add between 200 and 500 more. When you add-on, don't
pyramid though. Remember: a sudden decline in the stock can quickly turn a healthy profit into a loss.
As a last general rule, I think it's always a good idea to determine an appropriate re-entry point each
time you close a trade (particularly when that trade was for a healthy profit). Are you selling because
the stock is in a strong uptrend, but you are concerned it will pull back? If so, then where is there
sufficient support to allow you to get back in comfortably? Or if the market continues higher, at what
price would it be worthwhile to re-enter your original position?
9. Strive to put the odds in your favor. Ask yourself, "Does this trade have a 2:1
risk/reward ratio?"
When you enter a trade you should always have a target price in mind. Do not pluck this target out of
the air though. It should be based on your technical analysis using tools such as the measuring
principle.
I always strive to select trades whose target allows me strong profits if I'm correct, but where my
potential losses are fairly limited. In general, I look for opportunities where there are 2:1 odds.
Sometimes market conditions make this difficult. For example, toward the end of a large move in the
overall market, a large part of the gain or decline in a stock may have already taken place. If possible,
however, I seek to find set-ups where I can meaningfully set a stop loss of 8% in order to capture a
profit of 16%. When I cannot find those opportunities, I then look for potential 12% gains while
risking just 8%.
Finding trades with 2:1 odds greatly increases your chance of making money. For example, take the
chart of SIMG above. If you bought on the break of the downtrend line at $4.25 and then noted the
completion of the inverted head and shoulders formation (at about $4.65), you could have set a target
of $7.10 based on the measuring principle. Your upside potential at that point would have been
approximately 53%.
On the other hand, you could have set a stop at $4.00, just under the highs of the consolidation
immediately before the breakout. In that case your maximum loss would be about 5%. If you can find
trades where you have at least 2:1 odds, then you will greatly increase your chance of swing trading
success. Each week I pour over hundreds of charts in order to find the ones that I present to you in the
StreetAuthority Swing Trader.
A final word on targets. A swing trader should always assess and reassess the chart. In many cases,
you many need to take profits before your target is hit. On the other hand, if your analysis leads you to
conclude that your target will be exceeded, then you may want to raise that target. The key to trading
success, as many successful traders have proclaimed, is to cut losses short and let profits run.
Unfortunately, many untrained swing traders instead let losses run and cut profits short.
10. Be a "techno-fundamentalist," not just a technician. Integrate fundamentals into
your technical analysis.
In my hometown I have organized a group of avid traders called "Market Nuts." It is a free club that
meets once a month and is designed for active traders -- people who are nuts about the market. Most
of the people who attend have taken my TD Waterhouse seminar, and many are dedicated technicians.
During our regular meetings, I will occasionally talk about a stock's price-to-sales (P/S) or PE-togrowth (PEG) ratio. The reaction I get from some of these club members is almost always the same -"That's strange of you to mention! I thought you were a technician."
If confronted, I will often acknowledge that I "lied" in order to get the seminar instructor job. In
actuality, I consider myself a "techno-fundamentalist" -- someone who integrates both technical and
fundamental analysis.
Normally, technicians and fundamentalists are like the boys and girls at a sixth-grade dance: they
seldom speak to one another. Yet both forms of analysis can help one make more effective stock
market decisions. After all, you'd be hard-pressed to find a technical analyst who isn't in awe of
legendary value investor Warren Buffett's incredible track record of success.
If both forms of analysis are good, then why on earth would anyone believe that a combination of
both isn't better? After all, when used correctly they do not contradict each other. Rather, they are
supplemental. Note, however, that I am a techno-fundamentalist, not a fundo-technicalist (one person
I know actually is). I make decisions first and foremost based on chart patterns, not the other way
around. Roughly 80% of my analysis is chart based, while the other 20% is based on value.
11. Master the "inner game" of swing trading. Great trading is psychological as well
as technical.
Countless times I have heard traders beat themselves up over a bad trade they've made. The name of
their game is usually "woulda, coulda, shoulda." I would have bought XYZ at the bottom, but I had a
doctor's appointment that morning. I should have sold. Why didn't I sell? I could have been out right
at the top, if only I had read the candlesticks correctly. When am I going to learn?
Making a swing trading mistake can be painful. Not only does it often result in a loss of trading
capital, but it also hurt's one's self-esteem. When this happens to me, I literally think of it as a form of
"grief." The most productive response I can have is to experience the feelings of disappointment or
hurt and then move on. After all, I need to get mentally prepared to make my next trade.
One of the sports statistics I find most relevant to swing trading is baseball legend Ted Williams'
record-setting batting average. In 1941, he hit .406. 1941! .406! Think about it. While Ruth's home
run record has been bettered several times, Williams' record has not yet been beat.
The feat is more than 60 years old. He only hit .406. Put another way, he made an out .594, or almost
a full 60% of the time. The lesson to learn here is that no one is perfect. Everyone makes mistakes. As
I said in my first lesson, technical analysis can only increase the probability that you will make
correct decisions.
That said, I always try to treat bad trades as a learning experience. Was there something I didn't see on
the chart that I should have? Did I enter the trade too late? Set my stop too close? The winning swing
trader is marked by persistence: the commitment to getting better and better through time.
WHAT SHOULD I DO WITH THE INFORMATION IN TODAY'S LESSON?
There you have it -- the 11 Commandments of Swing Trading. I suggest you print this information out
and put it somewhere near your trading area. Every once in a while you might want to check this
information to evaluate whether you are violating any of these principles. The market is a hard
taskmaster. Violate the principles of effective swing trading and you will have your knuckles rapped
with the painful loss of trading capital.
(4.) CONCLUSION AND A LOOK AHEAD
That brings us to the end of this five-part trading course. I sincerely hope that your return on
investment (in terms of the time spent reading these reports) has more than been repaid by the benefits
you've gained in technical analysis knowledge and the ability to make better trades.
For those of you who have decided not to join me by subscribing to my weekly newsletter -- the
StreetAuthority Swing Trader -- today's lesson could mark the end of your educational journey into
swing trading. I'd like to thank you for giving my newsletter a try. However, for those of you who
have decided to continue on the path to swing trading success, your journey is just beginning. There is
much more to learn and there are hundreds of potentially profitable trading recommendations in your
future! On the educational front, let me tell you a little bit about my Special Bonus Report entitled -"The Technical Analysis Secret that Will Always Keep You on The Right Side of the Market."
Perhaps that claim sounds exaggerated, but I'm convinced that this tool will do just that. Being aware
of this concept spared me the ravages of the bear market that started in 2000. Since the information
and principles described within my Special Report have taken me years to develop and I hold them
very dear, I've only shared them few times in the past. The most recent instance occurred at my local
chapter of the Technical Analysis Society.
I began my session by asking how many people in the room had bought a tech stock in the last several
years. Perhaps three-quarters of the hands in the room went up. My next question was, how many
people made money on those tech stocks? Almost no hands remained held high.
At this point, it became perfectly clear that the principle I intend will share with you in my Special
Bonus Report is not well known -- not even among reasonably sophisticated technicians. In fact, it
wasn't until about 1995 -- after 25 years of stock market study -- that I stumbled across it. Even then,
for about three or four years I thought it was interesting, but not profound. But once the bear market
began, wow did I appreciate its importance! This important principle now serves as my starting point
for analyzing any chart.
Let me be frank. This technique is not original to me. As originally stated, in fact, it was actually
targeted to investors, not traders. Yet through a great deal of experimentation over the past several
years, I have now turned this concept into a swing trading tool -- the single most powerful one in my
arsenal. I have taught the "investor's version" in seminars, but have divulged the swing trading
concepts only to a few close friends. Now you can learn this secret.
In addition to this Special Report -- "The Technical Analysis Secret that Will Always Keep You on
The Right Side of the Market" -- you'll receive the following with your paid subscription to the
StreetAuthority Swing Trader...
Each week, I will keep you posted on key trends and levels in the overall market. I will help you catch
key market reversals and will suggest several stocks that you can go long or short on when these
reversals occur. If you've been paying attention to my weekly newsletter, then you have already seen
the incredible profits that one can earn through swing trading. Now these profits can be yours!
Furthermore, by examining my "Inside The Black Box" column, each week you will continue to learn
more about technical analysis. There is so much more I want to share with you, including:
•
What you need to look for on a chart when using moving averages. What combination of moving averages works
best for swing trading.
•
How the integration of the Western and Eastern principles of gap analysis can be a powerful and profitable tool.
(FYI -- I have never seen gaps discussed this way in any technical analysis books or on any web sites).
•
How the swing trader can recognize flags, apply the measuring principle and reap huge profits in just a matter of
days.
•
How to spot momentum divergence and why the rate of change is such a valuable warning indicator of
impending weakness or strength.
•
How to integrate all the "multiple" indicators into a cohesive, profitable trading strategy.
And this list goes on and on...
I invite you to join me by signing up for a subscription to the StreetAuthority Swing Trader today!
And if you sign up within the next 24 hours, you'll be guaranteed to lock in our special, limited-time
discount subscription rates!
Thank you for taking the time to review my five-part trading course, and best of success in the
markets!
Dr. Melvin Pasternak
Dr. Melvin Pasternak
Editor
The StreetAuthority Swing Trader