Swing Trading Course part 1.0
Hey guys, before I get into the course details I just want to share with you a couple points which I will be covering in next posts and also that if you are interested in becoming a better trader in general I would recommend you to stick around as I got a whole lot more coming.
What we will cover in part 1 of the swing trading course:
- Foundational swing trading concepts
- Swing trading setups and entry techniques
- Trade and risk management
There are plenty of trading courses out there for free or paid ones, but what I will offer is more than a trading course. It’s a chance for you to become financially independent. This is my goal I want to help and build people so that they can achieve they’re goals.
Without any further due let’s dive in and I hope you are all set up and ready to learn better said eat words and make them your own.
The four market phases, this will basically give us the structure which we will follow in our trades for the rest of the course before we dive into this topic there is something else which we need to know.
The personality of markets theory (PMT) which states that stocks and cryptocurrency tend to cycle through various personalities over time. Trade ONLY during the most favorable cycles as these provide the best opportunities. A well-behaved personality is likely to remain well-behaved until proves otherwise or just a volatile, unstructured personality is likely to remain as such,until proves otherwise, instruments or indicators as we call them will gradually switch between phases over time.
Now let’s talk about these 4 market phases and how they help us traders figure out a good potential trade. As we want to become profitable traders we need to trade only when the market gives us the right conditions to enter a trade.
- Accumulation
- Distribution
- Markup
- Markdown
These four market phases where pioneered by Richard D. Wyckoff which you may have heard in early 2021 as he showed one of his market phase theories and many people related that with Bitcoin’s chart. Theses markets gives us traders a “heads-up” on the potential upcoming market phase and allows us to anticipate or predict an upcoming price movement for which we can prepare for.
Traders that can recognize market phases are able to identify the best profit-making opportunities and I want you to read that again because it has a huge value in the upcoming lessons.
Let’s have a look at the chart below that’s worth a thousand words, this way we can understand better where we would want to enter a trade.
The idea of the entire course is the accumulation and the distribution phases are a necessity they are the fuel that leads to big mark up or mark down period, where the greater the period of distribution is, bigger profits can be obtained, and the easier we can identify this distribution phases the easier we can trade the mark ups and mark downs.
Let’s talk first about the accumulation phase and we will leave the rest for the next post which should come in the following days.
The accumulation phase occurs when Institutional investors begin buying up substantial supply of a given stock or crypto, which creates compression, and usually leads to a Markup phase.
Institutions buy large amounts of a given stock/coin over long periods of time, so as not to drive up the price but to maintain it in their buying zone.A large trading range,or base, develops as Institutions build their position.
Recognizing the Accumulation phase gives insight into future opportunity. Wyckoff: believes this phase is the “force” behind the upcoming move. We need to see the accumulation phase like we would be ready to go for a trip but we need to fill up the gas tank before we leave so we could have a longer journey without the need to stop again for gas, which makes the accumulation phase the fuel that leads to a bigger mark up or mark down period.
In the picture above you can clearly see that the period of accumulation lasted for months and as soon as the break-out happened the mark-up phase started, and the buying opportunities are where the price re-tests the break-out line and where price hits the blue arrow, there are multiple opportunities of getting in a trade as long as you can identify the market structure.
That is it from me for today hope you had a good lesson, I would suggest you open a chart go on a daily time frame and try to identify a market structure, if you want to just post it here and we can have a look together, also a clip will be uploaded on Youtube not sure when I will start but until then have a wonderful day.
Join my discord server if you want to learn more link down below.
