If you're an aggressive trader looking to make triple-digit returns... but don't want to deal with current market uncertainty, you need to get the details of this strategy now.

Markets are moving historically fast right now, which means you need to be even faster and have a concrete edge.

That's what the data Lance is able to tap into provides, a massive advantage over other traders. And because the moves generally happen quickly, you can reduce your risk by being in the market less time.

There Are No Stock Swing Trading Strategies That Can Predict Market Tops

Today’s topic is going to cover stock swing trading strategies that assist traders in locating market reversals. During the last few weeks the market has been selling off a bit and if you watched financial news channels you would have noticed that whenever the market slides off a bit, there’s always talk of doom and gloom. It’s the way the news media has operated for as long as I can remember.

The truth is no one knows if the market is peaking out or not, there’s no crystal ball and there’s no trading strategy that can predict long term market tops. What I can offer you is a few simple stock swing trading strategies that do a wonderful job of locating short term market peaks. I will show you the first one today and next week will show you the second one.

These two stock swing trading strategies are not the Holy Grail and both use stop loss and profit targets so that if and when the market goes against your position you will be protected. The first strategy is called the 1-2-3 bounce and it works well with stocks, index futures and commodities as well. Before I give you the rules and show you some examples of the 1-2-3 Bounce strategy I want to remind you that this is a chart pattern so there is some degree of subjective analysis involved. Unlike technical indicators that are based on mathematics, chart analysis involves visually looking at the chart.

  1. Find Stocks that are trading above 50 day high (point 1)
  2. Monitor Stocks and wait for a pullback down (point 2)
  3. Stock must rally within 15 trading days and come close to matching the high price (point 3)
  4. Sell 2 ticks below (point 2)
  5. Place protective stop (buy stop) 2 ticks above (point 1)
  6. Profit target is 4 times your risk level

I will show you a few demonstrations so you get a real good idea of how the 1-2-3 bounce looks like when it’s setting up.

Trading above 50 day price high

Are you using these popular indicators WRONG?

MACD. Bollinger bands. Moving averages. You’re not using them right. Worse still…

They’re keeping you from spotting the best breakout stocks and options.

Watch my FREE training to discover your mistake.

Stock pulls back

Stock tries to rally and test the high again, but fails

Here is how the 3 points pattern looks, when everything lines up

Entry point and protection point. Remember to always use stop loss orders. In this case it’s a buy stop order because you are shorting the market

Here you can see the entire picture. Notice the entry point and the profit target level

More Closely Guarded Than Area 51…

If you’d invested just $10,000 with this secret back in 2010 - you’d be sitting on $3,310,020 today!

That’s a stunning 100.6% average annual return.

Watch my FREE training to discover how.

Here Is Another Example Of Trading 1-2-3 Bounce Strategy

Trading above 50 day price high

The stock is pulling back from the high. This is where you establish point 1 and point 2

How can you multiply your portfolio 331x?

I want to show you three weird numbers:

0.95… 1.5… and 0.66…

With them you could have turned every $10,000 into $3.31 million since 2010.

Check out this free training video to find out how.

You can see the entire pattern from beginning to end. Make sure to place your stop loss or buy stop in this case and your profit target order

I think this will provide you with a good idea of how to locate and trade the 1-2-3 bounce strategy. I tend to utilize this strategy with low volatility stocks. I find that since markets drop so much faster than they rise, I can use the lack of volatility to make tighter stop loss levels. Remember protection of your capital should be your first priority when learning new stock swing trading strategies.

Roger Scott
Senior Editor