Swing Trade Plans
Swing Trade Plans (STPs) are posted Ray on @TLPrivate_ in addition to the TraderLion Top 10 Report done by Ross Haber
In this blog, we will walk you through how to approach Swing Trade Plans, how to interpret them, how to incorporate them into your trading, and much more.
As always, the comment section down below is where you can ask Ray questions after reading the content.
Let’s get started.
Swing Trade Plans stem from the 3 Key Watchlists that are maintained at TraderLion. You can read about our 3 Key Watchlist here.
The Swing Trade Plans highlight the following:
PRice & Volume Characteristics
Level to place risk
Potential entry areas
When Swing Trade Plans (STPs) are posted, they are not instantly actionable. Nothing that we do at TraderLion constitutes a stock pick, stock alert, stock picking, real-time picks, or however else you’d want to word it.
Like everything else we do at TL, all STPs, on a going-forward basis, will be posting in the evening hours when the market is closed. This will allow you as a trader to interpret the plan, see if it fits your trading personality, style, risk appetite versus where you are at in your journey.
It’s important that you focus on internalizing not only Swing Trade Plans but everything that we do at TL to increase your probabilities of success. Following anyone into anything at any point in your journey is a big no-no. Taking ownership of your trading is the key to success. Our job is to solely support you and put you in that position to succeed and when the market requires experience and a bit of steering we are then actively commentating to steer traders in the right direction.
The best way to show you how to interpret Swing Trade Plans is to start with examples and jump right into them.
Example 1: ROKU
Swing Trade Plan for ROKU highlighted the following:
PRice & Volume
- Big Volume Up Days, Low Volume Down Days
- Volume Dry Ups as Price Consolidates
- Relative Strength Days while Market Corrects
edges at play
In the case of ROKU it was MoneyFlow Markets + Relative Strength. The word MoneyFlow, IOF, IBT refer to our TLMoneyFlow data. MoneyFlow data adds to our conviction at TraderLion.
Potential entry/exit/risk parameters may be highlighted depending on the chart at play.
It is important to understand that risk is personal. There maybe charts under the #TLSTP tag that don’t fit your risk appetite. It is OKAY to ignore those charts. Focus on internalizing everything presented. We cannot repeat this enough. Remove the alerts, picks, setups mindset, and focus solely on internalizing. That is where the success lays.
The plan on ROKU was to position in the name versus the $150/155 mark on strength given the characteristics that were at play. Note how ROKU was tightening right underneath its entry area and took multiple days of consolidation/stalking/tracking the action to potentially position in the name. This is what we mean when we say, #TLSTPs are not actionable at the very moment they are posted. It may take several days for the potential directional action to show on the charts.
Let’s continue with a few more examples to cover different situations.
Example 2: CELH
The example above is of CELH a #TLSTP post-earnings gap up. On this Swing Trade Plan, we highlighted a level of risk vs which traders can position at, with no specific to the decimal entry area. In such plans, it’s important to weigh the evidence at play and stalk the setup before positioning in the name.
“Watch for RS Days on down days in the markets” means at the time the STP was posted, this chart was in the stalking phase and may become actionable vs the risk level presented at any time over the next few sessions. Given that CELH made it as an #TLSTP means the characteristics at play are those that winners exhibit. We follow the usual format of highlighting price/volume characteristics, edges at play, and in this case the risk parameters.
Swing Trade Plan for CELH highlighted the following:
PRice & Volume
- Highest Daily Volume Ever with Earnings Catalyst
- Follow-through Volume Post Earnings show institutional activity on the charts
- Relative Strength Days above the $30 mark which is a ++
edges at play
Highest Daily Volume Ever with High Closing Range with Earnings Catalyst. Post-Earnings the MoneyFlow Markets were active.
Risk parameters highlighted with no specific entry area.
Let’s move on to another example to wrap this up.
Example 3: UPWK
UPWK a #TLSTP since November, 2020 was of interest on strength above the $30 mark. Entry areas that are of interest on strength should be watched closely where the price on a closing basis or intraday basis must act well and close above the entry areas highlighted. If a particular chart attempts an entry level and closes below it, you will see Ray, trade it versus that level multiple times until the stock closes above and provides ample cushion to keep the position.
How the #TLDailyPlan fits into approaching #TLSTP
The market is at the heart of everything that Ray is doing in his portfolio. It’s important to keep the markets in mind, when attempting to execute the Swing Trade Plans that are presented.
A few scenarios to cement how the #TLDailyPlan and #TLSTP go hand in hand.
The market is holding within its pivots and the Swing Trade Plan attempts it’s entry on strength.
The way you want to process this is, the market is acting right and not at the forefront of your current focus because it’s trading within its’ respective pivots. To keep it short, the market is acting right. That ticks one of the boxes at play.
Second, if a stock is attempting to move higher towards the entry area, note the volume at play. If the volume is below-average or on pace to be below-average, one can initiate a smaller position and add to it, if the volume shows up. If the volume is on pace to be above average a full position can be initiated.
Third, how is the group acting? Is the STP in a group that is outperforming on that day when its attempting its pivot? If so that is an added bonus and will boost the performance of the underlying stock. If not, and the volume is very high, one can still initiate an entry on the name.
Fourth, how is the stock acting vs the entry area intraday? The pivots that we put forth have not only technical significances on the charts but also data-based significance. It’s at these points on the chart where we expect swift, directional movement. So it’s important that the stock acts well versus that entry area and shows strength vs that risk/entry area.
The market is disrespecting pivots to the downside, however the TLSTP is trading within the risk parameters
This is a positive situation. When the market is disrespecting its pivots and the Swing Trade Plan is holding its risk parameters, that is Relative Strength versus the risk parameters put forth. Depending on where you are at in your journey, there are many ways to go about this. If in the consistency phase, it’s important to exhibit strict discipline in your approach. So traders in the consistency phase should only initiate when the market is back above and respecting its pivots.
The experienced traders can look at the group, the characteristics, and the market conditions as a whole by leveraging their experience to make a more advanced judgment. So the approach you take here really has some aspect of experience, the phase you are in, and your understanding of the general markets as a whole.
The market is disrespecting pivots to the downside, TLSTP below its gauges/levels of risk
This scenario is fairly simple. Patience is required. In the markets those that wait for their edges to show and exercise discipline fair well in the long term. In these types of scenarios, it’s very important to not over trade and cut yourself into pieces while giving back ample progress that was made in a cooperative market environment.
That concludes what Swing Trade Plans are at TraderLion. As always if you have questions, please comment below and we can carry the discussion forward!