Trend Pullback Setup
Want to maximize the effectiveness of swing trading trend pullback setups? Here is the key element that will supercharge your trying profits: Add sector relative strength to your analysis.
Most traders just focus on setups in a vacuum. While you can get decent results as a setup trader, the best swing traders use a holistic approach that combines setup, market and sector analysis. It's not as complicated as it sounds. In fact, it's actually quite simple if you use this 3 step approach:
- Scan the strongest sectors over a given timeframe (sector relative strength).
- Pick the strongest stocks within the strongest sectors (stock relative strength)
- Apply the Trend-Pullback Setup.
This simple approach to swing trading trend pullbacks gives you an edge because it finds you the stocks that are already showing momentum and money flow, making them more likely to resume the uptrend off of a light profit-taking pullback.
In today's video, I show you how and why I entered semiconductor stock $AMBA using the trend pullback strategy and the 3 setup approach. We then analyze the specifics of the trend pullback setup entry and exit.
You will learn how to:
- Find relative strength sectors.
- Find relative strength stocks.
- Enter off Trend pullback candle formations
- Analyze pullbacks to support levels.
- Exit a trend pullback trade.
Remember, members of the swing service get all of these trade alerts intraday in real time.
This swing trading service is great for those that work and can't monitor the computer all day. We have in-depth nightly reports on the game plan for the day/week, and all stock picks that I trade will be alerted and emailed to you.