Overnight hold swing trade strategy


overnight hold swing trade strategy

that going on here. But since late 2012 trading the night session had a strong bull side advantage. Don't risk a dollar to try to make a dime. Depending on your willingness to take risk, you can trade on either a leading or a lagging indicator. Below is an equity curve of holding a single contract during the overnight session for the past three years. The best time to set one is right before you make the trade. It should be based on your technical analysis, using tools such as the measuring principle. And when you sell, you should immediately determine a re-entry level. I go to a variety of websites to look up analyst upgrades and downgrades, earnings reports and guidance, what is happening in the overseas markets and with the price of oil, gold and the.S. Intraday, I watch how they behave and try to get a feel for their personality. By the same token, volume characteristics of a breakout also can have a shortened time frame.

Swing traders use technical analysis to look for stocks with short-term. One strategy suggests that traders should buy the S P 500 at the close every evening and sell the trade on the next open, such is the significance of the overnight effect on stocks. Upon further analysis, however, it seems that this particular strategy becomes unprofitable once transaction costs are taken into account.

On the other hand, you should not focus exclusively on the primary trend when swing trading. For starters, many indicators all give the same message within a short period of time, such as two or three days. Rather than the 50-day moving average of volume as your threshold for heavy turnover, look to the volume of the shorter consolidation area for clues. During bear markets you should seek out stocks whose relative strength line is trending downward in relation to the. Most "industrial or non-resource (papers, metals, oil, gold) stocks are highly correlated with the direction of the overall market. Remember: There is no magic bullet for profitable trading the market. I use much shorter-term moving averages to ascertain the stock's short-term trend. Highly profitable trades usually occur when all available technical tools give the same message.

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