List of High Probability Swing Trading Strategies

The best and high probability swing trading strategies are Connors RSI2 strategy, double seven, and 3 bar play techniques.  

Swing trading has picked up popularity because it features wonderful advantages to the investors.

You can hold the stock you purchase for a period of days to a few weeks and that gives you ample time to decide on buying and selling of stocks.

Unlike Intraday, you do not have a deadline to sell trades within a day of purchase thereby becoming a part time job to earn good money.

Although you make money when the stock price rises from 2 to 3 percent above the bought price it is still risky to trade. 

To reduce the risks, you can adopt time and tested methods to earn, and they are Connors RS12 strategy, double seven, and 3 bar play.

Connors Relative Strength Index 2, RSI2, Strategy: 

In stock trading, the high volume and high volatility of the stocks causes a steady flow of buying and selling of stocks. The stocks keep moving upward, downward, and sideways and you buy stocks when prices are low and sell out on reaching your chosen selling price. 

In this process, it is important to identify from the graph charts when the stocks are overbought or oversold in the stock markets. 

Larry Connors made an attempt to analyse a situation when an overbought or oversold condition is reached. 

In his technique, he has combined RSI and moving averages together for identifying those aforesaid trading regions. 

According to Connor,

In RSI(2) strategy, you can have a chance to partake in the ongoing stock market trends. 

You must consider buying pullbacks, and not breakouts.

Traders should sell oversold bounces, and skip the support breaks.  

Traders have developed newer swing trading strategies that utilises mean reversion. 

Entry Position: 

You must enter the stock market when the price is well above the 200-day moving average.

Exit Position:

You should exit the stock market at a price when it closes below the 5-day moving average. 

Double Seven Strategy: 

Double Seven strategy is a time and tested trading strategy and you can know about it @ Short term trading strategies that work. 

Before publishing this strategy in a book form, it was worked upon by Cesar Alvarez, and Larry Connors. 

In due process, it has been tested on various ETFs, and the average profit factor you can gain is from 0.37 to 1.32.

The double seven trading strategy is a mean reversion strategy. 

You are advised to buy the stocks when trading signals take a dip and sell on the trading signal rise that is on strength. 

Basic Techniques of Buying & Selling in Double Seven Strategy:

You must select a stock that must have traded at least a 200-day moving average. 

In case, the stock experiences a 7-day low, then you must get ready to buy. 

You must be prepared to sell your bought stock at the same position if the stock price is at a 7-day high. 

3-Bar Play Strategy:

Traders wanted to identify the potential reversal in the trading patterns during the stock market trades. Experts came up with a seal proof technique that gave adequate strength to the investors to progress in the reversal trends of a stock market. 

3-Bar Strategy Layout:

It is a combination of the candlestick patterns and moving averages and has been proved beneficial after doing several backtests and then put to live. 

You will have to visualise the trading signals on the bar chart patterns that do employ candlestick techniques. 

It contains four types of 3-bar/4-bar play patterns and they help you realise the most common three bullish and three bearish trends.  

By approaching this technique, you can spot the chart patterns easily and is usually adopted in intraday trading, and scalping techniques.