#BEST MOVING AVERAGE FOR SWING TRADING HOW TO#

Let’s get started by explaining what the S&P 500 index is, and how to trade S&P 500 index, and we’re going to finish with our proprietary S&P 500 trading strategy. If you’re looking for more markets or different types of strategies, head on over to the Trading Strategy Guides Blog for tons of great new trading ideas.

#BEST MOVING AVERAGE FOR SWING TRADING SERIES#

You’re currently reading our stock trading strategies series of articles, feel free to check them all out by clicking the link. Make sure you hit the subscribe button, so you get your Free Trading Strategy every week directly into your email box. If this is your first time on our website, our team at Trading Strategy Guides welcomes you. However, you still need a profitable trading strategy for the S&P 500 if you want to track and forecast future price movements in the US stock indices. So, just because you’re a pro-Forex trader or an oil trader, that doesn’t mean you should only focus on the Forex market. More, due to the Intermarket correlation any sudden S&P 500 price movement can have a ripple effect across other markets, including the forex market, commodity market, future market, and even in the cryptocurrency market. Many investors use the S&P 500 index as a proxy to view the US stock market performance. If you too love trading stock indices, you need to learn our S&P 500 trading system. Most institutional investors and big hedge funds love trading S&P 500 index. There wasn't much sacrifice for the potential of further gains.Learn the S&P 500 trading strategy and speculate on the price movement of the world’s largest and most important stock market indices.

That prompted our removal of the remaining shares with the exit up more than 9% from the original entry. Meanwhile, the Nasdaq composite was showing short-term weakness trading below its 10-day moving average and looked to be on its way to the 50-day line. The stock looked like it was topping out a few days later as it reversed and lost ground that day and the next (5). However, by the end of the day, the stock reversed throwing some doubt on the decision. Skechers seemed to be a candidate for larger gains given the strength behind its move to new high ground.

Stretching a few of those gains further can really add some velocity to your portfolio growth as long as you don't give up too much if you're wrong. Enough trades like that over such a short time frame can really compound to a significant year. The two sells would average out to nearly an 8% gain. Normally, we would take the opportunity to sell the remaining shares and book the profit. As is our custom, we took profits on half the position and raised the stop to 1% profit from our entry.Īfter the Thanksgiving holiday, the stock hit our 10% profit goal (4). A week later and Skechers reached a 5% profit target from our entry (3). Once the stock reversed and cleared resistance, it joined IBD's SwingTrader (2). The fact that it retained the bulk of its gains from the gap, suggested there could be a buying opportunity at a reversal. Skechers pulled back over the next two weeks correcting nearly 13%. The stock set up after an earnings gap that topped 40% (1). Skechers ( SKX ) provides a recent example where a shift to the 10-day might have helped but wouldn't have been easy to implement. However, in a more powerful market environment, we expect to shift more to the 10-day line and could potentially see stronger gains as a result. The break of the 5-day line often preceded a break of the 10-day line or at least sideways action of sufficient length to make holding the trade unappealing. A post-analysis of the last two years reveals that in the most cases it was a good call. Decisive closes below the line have prompted exits to retain profits. The 5-day moving average has been the tool of choice for booking profits on IBD's SwingTrader.

Best moving average for swing trading