trading

1. SWING
TRADING

2. SWING TRADING
SWING trading
A STYLE OF TRADING WHERE WE HOLD ONTO OUR TRADE FOR 2 WEEKS TO 6 WEEKS.
TIME PERIOD – 2 WEEKS TO 6 WEEKS
TIME FRAME FOR ANALYSIS – 1 DAY

3. WHY SWING IN STOCKS?
CAN GRAB BETTER RETURNS
LOWER RISK
LESS STRESS
GOOD FOR WORKING PROFESSIONALS
UNIVERSAL APPLICATIONS

4. UNIVERSAL APPLICATIONS
THE CONCEPTS THAT WE USE IN SWING TRADING WORKS EVERYWHERE I.E. IN COMMODITIES,
FOREX, CRYPTO AND IN INTRADAY AS WELL.
SWING TRADING HELPS IN FORMING A GOOD UNDERSTANDING OF PRICE ACTION.

5. DIFFERENT STYLES
REVERSAL
IN THIS WE TAKE A TRADE AFTER THE TREND IS REVERSED.
CONTINUATION
IN THIS WE GO WITH THE TREND

6. WYCK OFF THEORY
The Wyckoff method states that the price cycle of a traded instrument consists of 4 stages –
Accumulation Markup, Distribution, and Mark Down.

7. TERMS TO UNDERSTAND WYCK
OFF THEORY
ACCUMULATION –area where larger players try to build positions and shake out smaller fish
without causing much of a further drop in price, or the beginning of the new trend.
UPTREND- The markup phase then follows, measured by the slope of the new uptrend.
RE-ACCUMULATION- Pullbacks to new support offer buying opportunities similar to
buy-the-dip patterns popular in modern markets. Re-accumulation phases interrupt
markup with small consolidation patterns

8. TERMS TO UNDERSTAND WYCK
OFF THEORY
DISTRIBUTION-This begins as the markup phase ends and price enters another range
period. The shares are being sold over a period of time—the opposite of accumulation. This
time, the sellers want to maintain higher prices until the shares are sold.
DOWNTREND-The slope of the new downtrend measures the markdown phase
RE-DISTRIBUTION-where the trend pauses while the security attracts a new set of
positions that will eventually get sold.

10. EXAMPLES FOR BASE
FORMATION
BASE FORMSTION IS ACCUMULATION BASICALLY A REVERSAL TRADE.
AFTER A GOOD TREND, A BASE IS FORMED AND WE EXPECT A REVERSAL.

16. SECTORAL ANALYSIS “A RISING
TIDE LIFTS ALL BOATS”
FOR STOCK SELECTION INSTEAD OF ANALYSING EACH STOCK ONE CAN ANALYSE SECTORS
TREND.
ONCE WE ANALYSE THE SECTORS WHICH LOOK BULLISH, WE HAVE TO IDENTIFY THE RIGHT
STOCKS IN THAT SECTOR.
TO IDENTIFY THE RIGHT STOCKS WE HAVE A SCANNER WHICH HELPS US GIVE STOCKS THAT ARE
CONSOLIDATING IN A TIGHT RANGE. (
https://chartink.com/screener/vcp-base-tight-area?src=wassup)

17. EXAMPLES FOR CONTINUATION
WHEN WE ARE IN A TREND MARKET USUALLY CONSOLIDATES (RE-ACCUMULATION) AND THEN
CONTINUES ITS TREND.
DURING PHASE OF CONSOLIDATION WE CAN OBSERVE DIFFERENT STRUCTURES LIKE
ASCENDING TRIANFLE – SAME HIGH BUT HIGHER LOWS
DESCENDING TRIANGLE – SAME LOW BUT LOWER HIGHS
RALLY – BASE – RALLY – TIGHT CONSOLIDATION

28. SOME POINTS TO KEEP IN MIND
WE USUALLY LOOK FOR LONG TRADES IN SWING AND ENTER THROUGH CASH.
WE CAN GO FOR SHORT TRADES AS WELL THROUGH FUTURES BUT FUTURES CARRY A LOT OF
OVERNIGHT RISK.
IN CASE OF FUTURES IF THERE IS A GAP UP/GAP DOWN OPENING IT CAN BE A CAPITAL
DESTROYER DUE TO HIGH EXPOSURE TO MARGINS.
SO IN CASE OF CIRCUITS FUTURES MIGHT TURN OUT TO BE A BOON OR BANE!

29. ENTRY
CONSERVATIVE-
FOR SOMEONE WHO DOES NOT HAVE TIME FOR KEEPING A TRACK FOR ENTRY IN A SCRIP CAN
ANALYZE SCRIPS AFTER MARKET HOURS AND THEN ENTER NEXT DAY ABOVE PREVIOUS DAY
HIGH IF 15 MIN CANDLE CLOSE ABOVE IT.
AGGRESSIVE-
IF SOMEONE IS ENGAGING IN MARKET DURING MARKET HOURS ONE CAN ENTER AGRESSIVELY
AFTER 15 MIN CANDLE CLOSES ABOVE BREAKOUT ZONE.

30. CONSERVATIVE STEPS
STEP 1: BREAKOUT OBSERVED AFTER MARKET HOURS
STEP 2: NEXT DAY ENTER IF CANDLE CLOSES ABOVE PREVIOUS DAY HIGH ON A 15 MIN
TIMEFRAME.
IF WE DON’T GET AN ENTRY THE NEXT DAY WE WAIT FOR RETEST ON A DAILY TIMEFRAME AND
THEN ENTER THROUGH SAME CRITERIA.

31. 1D TIME FRAME
LOOKING AT THIS
CHART AFTER MARKET
HOURS
BREAKOUT CANDLE OBSERVED AFTER MARKET HOURS

32. AGGRESSIVE
THIS IS FOR SOMEONE WHO IS ACTIVELY ENGAGING IN THE MARKETS. WE ENTER ON THE SAME
DAY.
STEP1: SET AN ALERT FOR WHEN STOCK IS TRADING NEAR BREAKOUT LEVEL.
STEP 2: ENTER IF 15MIN CANDLE CLOSES ABOVE BREAKOUT AREA.
LT EXAMPLE

33. STOCK NEAR
BREAKOUT
AREA
ALERT PLACED
WHEN STOCK IS
NEAR THIS ZONE 1000
SAY THE LEVEL IS
1000 ALERT PLACED
WHEN STOCK
AROUND 990
ALERT TRIGGERED
1D TIMEFRAME

34. STEPS
ON THE SAME DAY OF BREAKOUT IF 15 MIN CANDLE CLOSES ABOVE OUR BREAKOUT ZONE WE
WILL ENTER.

35. RETEST ENTRY
FOR A FAVORABLE RISK TO REWARD ONE CAN WAIT FOR RETEST
WE KNOW WHEN A RESISTANCE IS BROKEN IT ACTS AS SUPPORT
RESISTANCE LEVEL
THIS PINBAR SIGNIFIES THAT NOW THIS LEVEL IS ACTING AS SUPPORT

36. NO RETEST
BULLISH ENGULFING ON SUPPORT

37. POSITION SIZING
IN SWING TRADING WE SIZE OUR POSITION BASED ON CAPITAL.
ONE CAN DEPLOY 5-10% OF CAPITAL ON ONE STOCK
FOR EXAMPLE
YOU HAVE 1 LAC
ONE CAN INVEST 5000 TO 10000 IN ONE STOCK I.E. 5-10%
WE CAN START WITH 5% AND IF THE MOVE GOES IN OUR FAVOR WE CAN ADD MORE

38. TRAILING SL
WITH CONSOLIDATION
WITH EMA

39. HOW TO RUN PROFITS WITH
EMA
FOR A LONG POSITION AS LONG AS OUR STOCK IS TRADING ABOVE EMA20 WE CAN STAY IN
TRADE.
FOR A SHORT POSITION AS LONG AS OUR STOCK IS TRADING BELOW EMA20 WE STAY IN TRADE
IT IS ADVISABLE TO START RUNNING PROFITS WITH EMA ONLY AFTER RR1 IS ACHIEVED BECAUSE
WE CAN SAY THAT NOW MARKET IS TRENDING IN OUR DIRECTION AND BEFORE THAT WE MAY
GET MANY FALSE SIGNALS.

40. EXAMPLES

41. RETRACEMENT
ENTRY CANDLE
SL
NEW SL
NEW SL
SL TRIGGERED