Hello folks! So in today's video, you were going to learn the ideal entry point for swing positions. But what what? Charlie Our swing positions While swing positions are simply trades that you're taking for more than just one day. But Spoiler Alert The best entry point for a swing position and really any type of position is at conformation. We always wait for confirmation folks, but the secret of confirmation is choosing the correct aggregation period for your swing positions.

But of course confirmation points are going to be different based on the time chart that you're using. So for swing positions, it's not so straightforward. So with that being said in this video, we are going to straighten it out. and the only thing that I ask of you in return for covering this ravishing topic is that you hit that ravishing like button.

As a refresher, a confirmation is simply the first green candlestick opening above the price ranked blue SMA line. This is important you have because once we have that confirmation, we can then hold right the price break and then sell out at validation. It's a beautiful process folks, but buying in a confirmation also means we can measure the price breaks based on how far we are trading above the SMA line. This is our rule of thumb for trading any type of setup simply because it makes the price action prove to us that it is indeed a good setup.

Remember, we always want proof and not promises proof and not promises folks. However, based on the duration of your position, your confirmation points are going to change. Check out the one-minute aggregation period, check out the 5-minute aggregation period, and check out the for our aggregation period. There are different confirmations based on which time chart and aggregation period you're setting.

So which one do you choose and those are just three different aggregation periods with three different conformation points, so you could see very quickly how confusing it can get to choose the right confirmation. It's pretty straightforward when it comes to day trade and you choose the intraday chart, and if you're being very aggressive, you're choosing the one-minute confirmation. But for swing trading, this intraday chart isn't going to be very helpful for finding an entry point. As you adjust the time chart and your aggregation periods, your confirmation points change because your aggregation periods are changing, but quick rewind.

What are a gregarious aggregation periods Or the period designated by each candlestick? Very simple. Look how these changes based on the changing of the aggregation periods. Here's the one-minute aggregation period. Here's the 5-minute aggregation period.

Here is the for our aggregation period. Each candlestick represents the aggregation period that you choose. so you're obviously going to get different confirmation points based on the aggregation period that you choose to focus on. Okay, let's go ahead and start with Ba.

now. Throughout P Last 180 days, Ba has been bouncing back and forth from oversold to overbought. again and again. Now when the situation.

These are almost always linked to positive and negative news reactions and then there's subsequent Corrections Remember folks, every reaction in the stock market is a overreaction. So let's say we're looking to take a swing position in Ba. So what you've gone ahead and done is identified that if you had bought in and oversold literally any time oversold on the RSI, you could have held until overbought and then made a profit. This is the comeback King pattern that I've talked about a lot and it's the most simple swing trading pattern that you could even come up with.

We love this because the repeated pattern of fluctuation gives us opportunities to write the price waves upward and the fact that it is known to have overreactions and then whose Corrections is another elevated factor helping our position. But folks, no matter how good you are at identifying these opportunities, if you do not understand what time frame in 1 a gregarious you will be left financially constipated. So let's go ahead and look at the difference. So this is the for our aggregation period.

Zoom into the chart and see what types of run ups were having. Here we are looking for clean run ups. Do we have periods where we could have bought in at confirmation and experienced a clean running up afterwards? We do have a few periods hither, but it's pretty dirty and indecisive. We don't like dirty stocks, folks.

The dirtier it is, the more important it is for you to change the aggregation period. Since this is dirty on a longer term time chart, we'll make it more aggressive by switching from the 4 hour to the 1 hour. Now it's on the 1 hour and it's more aggressive, but what do you notice? Well, it's a little bit more clean, right? There's more opportunities and what do I mean by cleaning up? Well, now you can buy in at conformation after being oversold and simply write the price, strength up and sell out at validation. However, before the move, you can't be certain as to how far it will run.

So that means that you need to analyze previous runs to see what aggregation period is best accustomed to the stock. And if you look at previous runs, you can find that the one-hour tends to provide clean run ups the most often. And this is great because we could see repeated patterns and then we could take advantage of them in the future. But let's go ahead and look at another example.

So Rad. It's quite rad, folks. But ever since Rad broke into an upward direction over our red directional SMA line, it's run up quite consistently. now.

Now, as you may know, after you cross over our red directional SMA wine that's now considered to be in an upward direction. Now, being in an upward direction means that we now have an elevating factor. And when you have elevating factors, you're looking for opportunities to take an entry point. opportunities where you have solid confirmation.

By looking at this price action over the SMA line, it's been quite choppy. Sure, there were good day trading opportunities here. don't get me wrong, but this is a swing trading video and the truth is that swing craziness would have been much better than day trading it. Why do I say that? Well, Because you could have simply bought in here and then held up the entire time that it was running up instead of just buying in a confirmation.

It's selling out of validation. However, based on this time chart, we don't have a clean pathway, right? So how would you know where to sell out Because the validation points just kept coming. The price action on this time chart would have led you to buy in at conformation and selling out at validation again and again instead of enjoying a clean running up all the way. But this is where aggregation periods come in.

If you make the aggregation period less aggressive, changing it from one hour to four hours, everything changes. We could now literally have just bought in at confirmation and wrote the price, drank the entire time. And how would you know to use the 4-hour time chart? Well, one, the 4-hour time chart is one of the best time charts when it comes to swing trading longer term positions. But the other reason is because our ad had a previous pattern and this is very important.

a previous pattern of clean running up on the four-hour time chart. Now you will understand a little bit more about this as we go through the video, but that's basically the reasoning. Just to give you an idea of how well this works, take a look at Am there's four or five periods where you literally could have just bought in at confirmation and wrote the price strength up, selling out at an eventual validation. This allows you to profit off the upper direction without exposing yourself to the same amount of risk as you would have had if you just bought it when it was in a negative priced territory because if you bought it in a negative price rank territory underneath our blue SMA line.

that means that if it does decide to turn around and sell off, you're not going to have a validation point because you're already below the price rank. That's the main line. But if you were above it and then it sold off all of a sudden, you have a validation point. We're like, okay, well, huge deprecating factor I'm closing my position, but just for one second, really digest.

AMD Look and how clean these rod ups are, doesn't it make sense to focus on this time chart in this aggregation period. When this is the aggregation period that has the cleaned running up, and this is why it's so important to choose the right aggregation period. Folks, do not be financially constipated. Another tip is to simply look for the aggregation period that holds the pattern that you're trading off of.

For example, Ford to our has many opportunities to buy in at oversold and sell out at overbought, whereas Ford on the ten hour has a lot less opportunities. Likewise, the clean opportunities in Ford to hour tend to be a lot more common. So if you're choosing between the two hour and the ten hour aggregation periods and you want to trade over selling to over buying, which one are you going to choose, clearly be two hour. Okay, another example is Mu.

Now, Mu also has the comeback pattern of being able to buy in and oversold and sell out and overbought again and again. If I was planning to take a position, I'd look at several different time charts and see which has the cleanest run-up on average, and the two hour has clean run ups here here and here. Now there are a few run ups that were less than clean, but they still provide an opportunity nonetheless. That means that this two hour time chart would allow you to catch most of the move most of the time.

So a little thing about trading is that trading is a probability game. That means that you can't catch a hundred percent of the move. If you find someone online that says they can catch a hundred percent of the move though, over to their channel. watch them instead.

But for me and Zip Rater, you can't catch a hundred percent of the move. You're catching most of the move most of the time. At least that is the and the purpose. It's not to catch all the moves all of the time, but most of the move most of the time.

Think of a bucket, right? Hey, bucket catching rainwater. If rains falling down, a lot of its going to get into the bucket, but not all of its going to get into the bucket, folks. But back in this context, the two-hour works perfectly. but if we switch it to the four hour on the same time span, you actually get to catch more of the move.

Maybe it's a bigger bucket, but here's the kicker. See, there is a con to this: There aren't as many solid opportunities on the four hour. The four hour doesn't have as many overselling points because it's a lot less aggressive. So it's really a push-pull between balancing your elevating factors and balancing the aggressiveness of your time chart.

Okay, so anyways, let's break this down step by step by step. Here is a step by step guide on how to analyze and find the correct entry point for your swing trades. Number one: Identify the pattern that you're trying to trade off of and pick the time frame that holds several examples of said pattern. If that's the comeback king or comeback Queen pattern.

that means that you're looking for the RSI which one has more opportunities in terms of running up after the AR Versailles was oversold and then went to overbought. Or if you're trading off a trendline right, which one has more opportunities in terms of going back and forth right? Which aggregation period in which time chart displays the pattern that you're trying to create off of number to adjust the aggregation period until you find several previous examples of clean running up? Make sure that you're finding examples where it cleanly ran up. This isn't an exact science, folks. I'd Love to tell you that there's just one aggregation period and you could literally just buy in and then that will be perfect.

But you need to guesstimate right based on previous patterns of running up, and that's really the key here. It's an Orc number Three, evaluate you're elevating and deprecating factors, and make a plan to enter upon a clean confirmation. This is very important. Do you want a clean confirmation? What does that mean? Well, don't trade.

Messy price action that keeps giving you false confirmations above the SMA line. Make sure that you're trading something that both has a pattern of clean running up after confirmation and is also showing strong price strength. Stack: You're elevating factors. We don't just buy things because they're confirmed, do you buy them because it's already confirming a good position? But anyways, folks.

I Do hope that this video was helpful. I Do want to remind you to always have a plan when you're trading with in the stock market. A lot of people think that you can just buy in randomly a confirmation and everything will be all berries and roses, but that's not how this works. You need to have a clear plan, a confirmation confirms an already good set up, and you need to have a clear exit point right? So where are you entering? Where are you exiting, and what is it that's actually convicting you to take a position? We trade like spoiled brats and that means you need to wait to be confirmed.

You need to wait to be convinced to take a position Anyways, folks I do appreciate you taking the time to watch this video. I Hope that we were able to provide some serious value to you. If you have any questions, make sure to comment below or join our free Zip Trader Circle Facebook Group I post lightly watch lists there every night by the nature of it being nightly, but we post every night and you can join with the link in the description below. We also have Zip Trader You which is our structured course for folks who are looking for extra guidance in growing their account.

and I work with this group every single day, so make sure to check it out if this is something that you see value in. Anyways, have a great day and I'll see you in the next video.