Swing Setups: Just from the name it implies that the expectation is to hold these trades for more than a day. Sometime days and up to couple of weeks. So if you are trying to go for a decent reward, you need to accept the realities of swinging options as well. Dealing with draw downs, and seeing an option lose 50% of its value before making its way back up can be very normal.
Anti-Climax Pattern- The Market psychology behind this Price action set up is that when market goes up or down with strong momentum, folks like you & me fear that they are left behind by this exciting move. ‘FOMO’ as we call it. At some point the market runs out of buyers , and they just want to get out – that is classified as ‘Anti-Climax’ phase. What happens after a climax is a turning point, a Crash, a burst...And as these bag holders realize the high level bearish sentiment and look to dump – guess who is ready to take advantage of the selling pressure they create. WE ARE.
In this trading pattern, I have highlighted exact entry points for both long and short setups along with an example. Why not use Pure Price action to identify this lucrative and profitable setup.
Success Ratio: 84%
Average Profit per Trade will vary depending on the stock price you get in.
More Swing setups to come. Takes time to put it all together with little ones around you all the time. Thanks for your patience................