Classic swing trading strategies

for stock chart patterns

Swing trading strategies can be based on trading of classic chart patterns. There is possible to use basic rules for trading of stock chart pattern or use advanced rules of stock trading charts.

I personally use these swing trading strategies as you can read in my free newsletter.

Basic stock trading chart strategy

This type of technical trading strategy is based on breakout from specified chart pattern. Most of stock chart patterns have defined level of support or resistance - it could be horizontal level or trend line. Here are two examples:

Cup with handle chart pattern horizontal resistance level

Classic trading strategy is to buy breakout of this horizontal price level. You as a trader need define point where you will consider breakout as successful and it is already "safe" to buy. You can use technique of fixed value distance from resistance level.

This chart I traded as a breakout with entry near 40.45.

Bearish pennant in established downtrend

Basic rule for trading bearish pennant is to sell short immediately after breakdown of support trend line of this chart pattern. I did short trade in GOOG based on this bearish stock chart pattern with entry near 631.50. I announced this swing trade setup in this my blog post.

Another option for swing stock trading of chart patterns

There is another possibility how to do stock trading of chart patterns. This option can be used in case that:

breakout style of stock market trading strategy is too aggressive

or

market is in downtrend and does not support long breakout

In such case you could choose to trade pullback type of stock market trading strategy. Watch this example of MYGN chart .

It was possible to enter swing trade after pullback to 40 USD level acting now as a support. Both strategies brought nice trading results (I traded them both as swing trade and as a position trade).

Here are results of these trades for illustrational purposes.

Return from Swing trading strategies to stock chart patterns

footer for swing trading strategies page