Profitable Day and Swing Trading : Using Price / Volume Surges and Pattern Recognition to Catch Big Moves in the Stock Market
Written in easy-to-understand language, Profitable Day and Swing Trading explains the trading tactics that draw on price, volume, and pattern recognition. Highly regarded trader Harry Boxer offers the information needed to recognize chart patterns, identify trades, and execute entries and exits that will maximize profits and limit losses.
The trading day does not just begin at the opening bell. Ask any successful trader and you’ll discover he has a routine leading up to the trading day that is nearly as important as what goes on during set trading hours. Preparation is the key to many things in life, and trading is no exception.
In this book, we’ll cover premarket preparation and analysis, which includes a review of the closing patterns from the prior session and a look at the premarket news and resulting price action. Proper premarket preparation always starts with analyzing the closing patterns of interest from the prior session for possible strong “setups” for the next day trade. This should be done after the close of the prior session (or during that evening) before the next session begins.
My strong suggestion is that you do your work when it’s fresh in your mind and prepare your watch lists before the next day, when you should be monitoring premarket news and price action for possible trading candidates. In any case, you are looking for key bullish price action with relatively higher volume than normal, hopefully on a significant price volume surge through a key technical resistance or support level or zone. You should be on the lookout for following bullish/bearish consolidations or orderly retracement patterns such as flags, wedges, coils, pennants, and so on.
The preceding patterns have distinctly diﬀerent formations, although coils, pennants, and wedges may at first appear similar, and all eventually will move toward an apex or narrowing of price pattern until the lines meet. Coils usually are narrower at the start and then price moves in a smaller decreasing range.
Pennants, although very similar to coils, are usually smaller and tighter and shorter in time. Wedges can and usually do start with a wider price range and appear more symmetrical or triangular than coils before also narrowing toward the apex. Bull flags are more orderly and tend to remain in a parallel pattern, ideally moving in a lateral direction or with a slightly upward or downward micro trend.
These patterns may be precursors or setups for the next move or extension of the prior move, otherwise called a possible new wave or leg up. Stocks that have those characteristics should be put on a “trading watch list” or “focus list,” so they can be closely monitored for possible trades the next session and going forward.
- My Journey as a Trader
- Preparing for the Trading Session
- Analyzing Early Trend Development
- My Favorite Day-Trading Patterns
- Using Moving Averages
- Drawing Trend Lines and Why They’re Critical in Analyzing the Trend
- Setting Targets and Price Objectives
- What Kind of Trader Are You?
- Determining and Setting Stops
- Technical Divergences and Loss of Momentum
- The Interpretation and Use of Stochastic Oscillators
- Moving Average Convergence/Divergence
- Bollinger Bands
- Position Sizing and Money Management
- Swing Trading
- Rules and Guidelines to Better Trading
- 38 Steps to Becoming a Successful Trader