Seven-Step Process as a Swing Trader

Introduction

• Host: ToriTrades, providing insights on trend line trading.

• Overview of topics discussed in the video:

  • Finding trades

  • Routine practices

  • Playbook examples

  • Recapping and breaking down trades

  • Time frames

  • Entry and exit criteria

  • Strategies for repeating and improving trading

Step 1: Finding Trades

• Main Feature Used: TradingView alerts on trend lines.

  • Alerts indicate when trend lines are broken or touched.

  • Visual representation: bell icon on trend lines in TradingView.

• Example of Crude Oil Trade:

  • Three touch points on a downward trend line identified:

  • Price action considered after crossing the downward trend line.

  • Second confirmation needed: Area of resistance at $68.86.

  • Tori emphasizes patience in waiting for confirmation before entering trades.

• Process of Finding Trades:

  • Routine of setting alerts for trend lines.

  • Organized weekly charting on Sunday nights:

  • Drawing and adjusting trend lines.

  • Deleting broken trend lines.

  • Updating watch list (focus on crude oil and platinum).

Step 2: Routine for Trading

• Importance of a Trading Routine:

  • Schedules time on Sunday for comprehensive review.

  • Analyzes various scenarios for upcoming week.

  • Prepares mentally for market movements.

• Techniques:

  • Utilize path tool in TradingView to visualize price scenarios:

  • Best case, worst case, and consolidation scenarios.

  • Acknowledgement of risk management:

  • Planning for potential losses and gains.

Step 3: Playbook Examples

• Focus on Three Touch Point Trend Line Break:

  • Key Questions in Playbook:

  • Does the trend line have three touch points? (Yes, for crude oil)

  • Is it a low-risk setup?

  • Risk assessment may involve adjusting position sizes.

  • Over a week’s worth of data needed to support trend line validity:

  • Confirmed with historical price points on the trend line.

  • Market condition assessment (trend vs. consolidation).

Step 4: Recapping and Breaking Down Trades

• Tools Used: TradeZella platform.

• Process for Recapping:

  • Review trades entered in TradeZella.

  • Analyze whether trades met all playbook criteria.

  • Stats Review:

  • Original stop loss and risk management strategy.

  • Tagging of trades regarding their risk level and strategy identification.

• Trade Review Template:

  • Title, overview, summary, reasons for entering, and final results.

  • Key takeaways noted for future reference.

Step 5: Time Frame Focus

• Time Frame Strategy:

  • Start with top-down analysis methodology:

  • Monthly.

  • Weekly.

  • Daily.

  • Focus drill down to four-hour time frame for entries and exits.

• Daily glance allowed for broader market context, but primary trading decisions made on four-hour charts.

Step 6: Entry and Exit Criteria

• Specific Entry Criteria:

  • Confirmation of three touch points on trend line.

  • Assessment of low-risk setup.

  • Minimum requirement of over a week’s data on trend line confirmed.

  • Current market trends reviewed for suitability of entry.

• Exit Criteria:

  • Defined by cross of safety line or opposing trend line impact or hitting support/resistance areas.

Step 7: Repeat and Improve Trading Practices

• Reflection and Analysis:

  • Evaluate aggregated trading results to identify patterns among winning and losing trades.

  • Considerations for improvements:

  • Entry timing, holding period for losers, and profit taking strategies.

• Goal: Continuously replicate strategies that lead to success, while removing patterns leading to losses.

Conclusion

• Reiterates the importance of a systematic, strategic approach to swing trading.

• Encouragement to like, subscribe, and engage for further trading insights and tips.