30th January 2013 Great Example Of Long Term Swing Trading Using Sceeto. Sceeto is a great set of real time no lag indicators that you can use to help you trade even better. Sceeto surfaces live alerts for high frequency trading and monitors the order flow which of course moves price action. Alerts can be surfaced in NinjaTrader, TradeStation, Multicharts and SierraCharts. Today we are showing you an example of a longer term swing trade setup. sceeto can be used with your normal indicators as well as the standard price action setups. It’s great for you the trader as you know that what our indicators surface on your charts is real time, so some use it on it own and others to confirm a move. We have a great free trial at http://sceeto.com/user/register you’ll love it. sceeto is so fast it’s supersonic !
text courtesy of Wikipedia creative commons licence
Utilizing a set of objective rules for buying and selling is a very common method used by swing traders because the rules eliminate the subjectivity, emotional aspects, and labor-intensive analysis of swing trading. The trading rules can be used to create a predictive market trading algorithm or “trading system” which can be further defined as a calculable set of trading rules that uses either technical analysis and/or fundamental analysis and results in entry and exit price points.
Simpler rule-based trading approaches include Alexander Elder’s strategy, which measures the behavior of an instrument’s price trend using three different moving averages of closing prices. The instrument is only traded Long when the three averages are aligned in an upward direction, and only traded Short when the three averages are moving downward.[4] Trading algorithms/systems may lose their profit potential when they obtain enough of a mass following to curtail their effectiveness: “Now it’s an arms race. Everyone is building more sophisticated algorithms, and the more competition exists, the smaller the profits,” observes Andrew Lo, the Director of the Laboratory For Financial Engineering, for the Massachusetts Institute of Technology.[5]
Identifying when to enter and when to exit a trade is the primary challenge for all swing trading strategies. However, swing traders do not need perfect timing—to buy at the very bottom and sell at the very top of price oscillations—to make a profit. Small consistent earnings that involve strict money management rules can compound returns significantly. It is generally accepted and understood that all mathematical models or algorithms will not always work with every instrument or in every market situation.Risks in swing trading are commensurate with market speculation in general. Risk of loss in swing trading typically increases in a trading range, or sideways price movement, as compared to a bull market or bear market that is clearly moving in a specific direction.
