A retracement strategy involves looking for stocks in a long-term rising trend whose price is experiencing a temporary dip.
In this article I will go over a basic swing trading momentum screen, based on price retracements in stocks that are in a rising trend.
In this video i'll go over some price retracement trading screens using the 20, 50 and 200 simple moving averages.
WHY TREND FOLLOWING? Typical trend investors have only three consecutive goals in mind: 1. Identify new potential long-term trends 2. Stay invested in clear strong trends as long as possible 3. Close positions as quickly as possible when it is clear that the trend has ended. Thus, the purpose of a Trend Following Swing Trading Strategy is not to predict tops or bottoms. The typical trend trader will try to identify the main trend before taking a position and then open a position in the direction of that prevailing trend in order to maximize potential profits. In this video we take a look at some trend following entry techniques.
Mid term trend
Long term trend
Price near SMA20
Short term trend
20,50 and 200SMA overlays visible on the charts
Run this screen in your favorite region. You can always further fine tune the screen by changing the general settings after it opened in the screener.