Today we are going to be talking about what I find to be the three most efficient and powerful swing trading strategies. for those investing and trading within the stock market, the three strategies that we're going to be talking about or wanted to take advantage of these three patterns. And for those of you who are unfamiliar with swing trading, swing trading is sort of like short term investing where we buy on one day and then we sell out on another. The reason it's popular is because of the practicality behind it.

Simply put, it's a lot easier to fit into a busy lifestyle. Unlike day trading, you don't need to stare at the computer for hours every morning. So what that being said I Want to give you three powerful strategies that you can employ immediately after watching this video and of course all I ask of you in return for this video is that you hit that beautiful and ravishing like button and also notice that my like buttons tend to be more ravishing than other people's like buttons. And also don't forget to subscribe if you see value in the following video.

Ok so to start, the biggest risk that traders deal with when swing trading is the risk of getting stuck in a position when you're holding in overnight or you're holding it for several weeks and then a piece of bad news comes out. Be that bad earnings, some sort of revenue cut for the company? a tweet from the CEO whatever it is that's bad, that could be a huge disaster for the stock that you're trading. So my methodology For avoiding this is simply to trade what I call Hashtag Winners. These are stocks that have the volatility that we need to trade off of, but are also killing it in terms of earnings analyst aka monkey expectations and overall target prices.

Of course, there's always the risk that something bad will happen, but when you're trading hashtag Winners, that risk is less likely. Now, the reason that we call them hashtag Winners is because it reminds me of the cringy Instagram social media Princesses that post ridiculous pictures of each other and use a caption that goes something like just went on a tomato only diet. Oh my Gosh tagged courage that reminds me of analysts because it's extremely cringy and not valued providing at all. Anyways, I find that analysts tend to cover companies in much the same way as these not so princessy princesses.

It's always very emotional and very extreme, but since there are many chief investors that follow analyst opinions, it can become a self-fulfilling prophecy in the short term and is something that we can take advantage of. So let's go ahead and take a look at Netflix as an example of why these things are important now. Netflix has been quite volatile in the last 180 days with price action ranging from 4 or 5. So again, Hashtag Winners This is where we are trading stocks to not only have a history of the volatility that we need to trade off of, but also have indications of a continued up trend with positive earnings expectations aka Hi Monkey analysts target prices.

But if you notice, there are certain periods and Netflix's price action that have rapid changes in price that are somewhat different than the rest of the price action. and that's here here and here. These are, of course, earnings related, as we see the Reins icon below. The first one was a lot more pronounced than the other two, but they were all pretty pronounced.

And the point is that if you were holding during these time periods on a regular swing trade, then the price action is prone to moving rapidly, either for or against you. Not all companies are so greatly affected by earnings, but if you're trading one that is, you could easily figure that out by looking at the your charter. the 180-day Chardon seen how it usually reacts to earnings. And if you're trading Hashtag Winners, you need to figure out how to take advantage of rapid increases and how to avoid rapid B creases.

So to deal with this issue I recommend using what I call Monkey support lines. Now, while individual monkey and analyst predictions don't mean much in terms of actual valuation, they do mean a lot to sheep investors and we could take advantage of this. But the important thing and I do want to warn you is that you don't just blindly trust Monkey opinions regardless of where they're at. We're not using them as an investment indicator, but rather as a fundamental cue as well as a sort of fundamental support line before.

I Get into this though I Just want to make sure that you understand what I'm talking about so that you don't get tricked into the monkeys and end up falling face-first into Monkeyville if you understand this. I Highly recommend and encourage you to comment below. Charlie I Promise you I will Never trust the monkeys. So with that being said, we use Monkey Analyst Support Lines to set a fundamental support line that is the average analyst aka Monkey target price for the stock that you are looking to swing trade.

So say we're looking to take a swing position on the 20 day chart for Netflix we see that pre Earnings Netflix hit support at 342 had a previous pattern of recovering from oversold and becoming overbought again and again like we saw here. So say we want to take advantage of this discount. The key would not just to be to buy here because while we do have technical analysis in our favor, a poor earnings report could easily take our position and we don't want to mess with that. So while we can easily identify the technical level of support, we also need to figure out where the monkey level of support is first.

We need to ferm positive expectations. So to do this, you can easily go to Google News and find analyst opinions by simply typing in the ticker. Don't trust any one source, no matter how reputable it looks. Rather open up a bunch of them and see what the average target price is and what they say is the target price.

Over a bunch of different analysts like 30 analysts, firms or whatever, they'll usually tell you what the average target price is and how many firms are used to calculate that. but this step is literally just taking a consensus. So this article here a few days before earnings release, forecasts general growth from a company with a massive amount of subscriber additions and the company moving into new markets. So this is something that I like to see to know that the analysts are generally bullish on the stock and its revenue and its growth as a company.

And if you're looking through Netflix before earnings on the 16th, you see that most of the articles are giving similar opinions and with price hikes from Netflix is monthly membership price increase, we are seeing analysts setting the average target price at around four hundred four hundred two dollars. Do you go on the Nasdaq website? you can see the consensus for the target range of Netflix and stock as well I Don't know how accurate this is but but it's great for taking a general consensus. but they are reporting it at 4:17 probably higher than the 402 numbers specifically because it may have been updated after the earnings report. But in any case, this is another resource that you can use.

But since we're analyzing this stock in sort of a pre earnings way, so we could see in hindsight how we could have taken advantage of the earnings report before it came out, we're going to act as if this earnings report never happened. and with that in mind, we're going to set the monkey support level to 402. Back to the chart to plot this. Now, you may quickly notice that the monkey line of support is so high that it's not even on the chart.

That is fine. The higher the monkeys are projecting the stock to go, the more sheep investors that are going to help us earn a profit. Buying into stocks that have massive expectations is better than buying into stocks that everyone thinks are going to crash because as we know, in the short run, the market is dictated by the opinions of the masses and not the actual underlying value. Of course, in the long run, stocks tend to converge to their real value, but in the short run and we have fluctuations where people are like I don't know what value This is.

The real reason the monkey line of support is so important is because it is usually at a price point that is extensively generous since monkeys will be monkeys, of course. and the reason this is good is because if we know that the monkey level of support line is trading below us, that means that our position is a lot more risky. If the price action is she trading above it, say if the monkey line support was at 300 instead of 400, then we need to be more worried about a negative earnings report or negative news catalysts since the analysts and chief investors are expecting a sell-off and this sort of becomes a self-fulfilling prophecy. But the point that I want to get across is that the Maki line support is not so much something that you should use as a actual support line as we think of technical support resistance, but rather as a bearing to see where the average monkey is predicting the future price point to be at.

If you were swing trading, you ideally want the monkey level of support to be higher than any technical resistance level. Now with that being said, and just to be completely clear, do not take monkey level of support as any indication of what is going to happen to the share price. Use it only to profit off the fluctuations caused by sheep investors, as well as understanding the general consensus when it comes to earnings and overall reports so that you could protect yourself when you're holding swing positions. When it comes to earnings and bad news, the monkeys may be monkeys, but odds are strong that they will have a better idea overall.

as a general consensus of many monkey firms as compared to you that only has Google and some guy that you watch on YouTube that spends all this time calling analysts monkeys. That being said, Moe keys are generally over emotional with their target prices or biased on the sector that their firm tends to focus on. so you are going to want to find them the average of all of them together like I showed earlier to get a better feel of the monkey support line and overall monkey expectations. Okay, and this is basically the hashtag winner strategy.

So number Two is the cookie cutter example of a stock that we want to swing trade. This is where we have a stock that consistently goes back and forth from support to resist and support to resist and support to resistance. Yada-yada-yada For those who are familiar with this channel, this is very similar to be comeback pattern that goes from oversold to overbought. o mejor SI But for the purposes of this video, I'm going to approach it from just a support and resistance standpoint.

Now, the catch with these is that oftentimes what happens such as in this case is that they will provide price action to trade off of, but they will have the strength to make it to resistance. Other times they will have much stronger price action and break away into new resistance. But the way that I play these is by always expecting the worst. Thus, when playing these, it's a good idea to sell 75% of the way to resistance as a cautionary measure.

This allows you to be much more likely to keep your profit in the long run versus just that individual trade. If you were to hold back to resistance, you may get a bit more profit on that one trade, but that profit can easily be taken away on the next trade. if it doesn't make it all the way back up to resistance and instead falls back down. This also applies with stocks that are consistently making higher levels of support and resistance along the trend lines.

we see opportunities to buy in at support and sell out resistance and so on and so forth. Okay, here's another example of this: ICP Tea Now you'll notice while the price action doesn't perfectly fit, it serves its purpose of providing us the price action where we can buy in at conservative support and sell out a conservative resistance or 75% of the way as a cautionary measure based on your read of the upward potential. My seventy five percent rule is based on your risk tolerance and your feel for the position that you're in. But in any case, I Think too often people focus on finding the perfect pattern, But the problem is that this doesn't exist.

and if you do happen to find a unicorn, odds are strong that it will eventually break that pattern and you'll end up losing money anyways unless you never want to aim for perfection. So my suggestion is to settle for patterns that are good enough and then practice superb risk management. In this situation, we would have had long-term upward potential to 133 and we also weren't overbought on RSI. So I'd say it would have made more sense to sell out at Resistance as compared to using our 75% role.

That being said, this is based again on the price strength you see at the moment and as a general rule of thumb, especially if you knew 75% is a great place to sell out. I Don't understand why you would risk few long-term profits that you can make at the expense of perhaps making 25% more on the one single trade. Also, a very simple and underused method of managing your risk is to simply wait and buy in it conformation. If your stock price is just going down or has just hit support, don't just take for granted that it's going to hold and recover, but instead wait for a confirmation a confirmation that it is going to in patience is not a good quality when it comes to trading within the stock market.

Taking positions specifically because you're impatient is a loser's game. Okay, and the last one we're going to be talking about is the strategy of trading push backs from an uptrend. so the overall market tends to perform in a way that doesn't allow for a consistent non-stop growth period after period. Instead, there are periods within the O for all uptrend where there will be Corrections and identifying short-term Corrections that don't have any lasting impact on the overall trend is going to be extremely helpful, but this is much simpler to identify when it comes to Corrections and individuals thoughts.

AMD is a good example of this. Unlike the overall market, Andy tends to push bats much more often, but it stays within the overall uptrend for the stock. It's not creating a broader reversal, rather just a pushback where you can take advantage of mine in at a discount position. These push backs are making higher highs as well as higher lows.

Overall, unless these offer you an opportunity to take advantage of not only a discounted price point, but also a stock that is in general trending upwards. We talk a lot about direction and direction is so important for keeping the odds of success in your favor and taking advantage of these plays. You not only have the discount, but you also have the direction in your favor as well. Another example is Chk.

We have the same thing que well I Hope this video was helpful If you have any more questions, don't forget to comment below or reach out to us on the zip trader circle Facebook group. We also have a trading tutorials playlist which you can reach by going to the zip crate and main page clicking trading tutorials, and working down the list. We now have a discord chat available as well, which you can join by going to the Facebook group and clicking the top link once you're in the group. As always, when you're trading within the stock market I Recommend that you use fake simulated money first through an on-demand trading platform or perhaps paper trading.

This allows you to test out all the strategies and all your skills that you learned without risking any real money. And I don't understand why anybody who isn't able to grow a fake money would ever risk their real money. So I recommend practicing first anyways. Have a great day folks and I'll see you in the next video.