In this stock trading strategy video, we show you a way to quickly, in a matter of minutes, find the strongest stocks and ETFs in the market that are presently on slight “pullbacks” off their highs.
For many technical traders, and for our swing trading system, a stock or ETF with relative strength that is pulling back to a near-term support level is considered a low-risk trade entry point with a positive reward-risk ratio.
Play the video below to learn a simple technique for spotting these swing trade setups when doing your nightly stock screening. For best viewing quality, watch the video in full-screen HD mode by clicking the icon on bottom right of the video player window:
Although the video above explains the automated “no brainer” way of finding strong stocks and ETFs on a pullback, it is extremely important to understand the principles and details for why this strategy works, as well as why “pullback” buying is a major part of our short-term trading system.
To learn more about the detailed rules of our swing trading methodology, we strongly recommend viewing our Free “Buy Setups” video — 40 full minutes of extremely valuable and detailed trading strategy knowledge for active traders. This free video can be found by jumping to our Stock Trading Course page and then clicking the link on that page that says “Class 104 – Trade Setups (when to buy).”
Our technical stock screener, with the preset “Pullback” scan, can be taken for a test drive by clicking here.
What do you you think? Is “pullback” buying an existing part of your trading methodology? Is it something you are planning to incorporate?