A COMPLETE AND COMPREHENSIVE - STEP BY STEP

TRADING SYSTEM

A RULE BASED, DISCIPLINED, TRADING SYSTEM

ENABLES TRADERS TO ELEMINATE EMOTIONAL, IMPULSIVE, DECISIONS.

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Although there are only three primary indicators in the SWING•GENIE package, each one of them contains many additional embedded indicators that will greatly facilitate your confidence in selecting, entering and profiting from your stock or equity selections. 

SWING•GENIE (S•G) enables traders to quickly identify great technical entry opportunities.  When multiple tools within the S•G environment, confirm and then reconfirm entry signals, it increases the likelihood that the stock or equity you are considering will actually move in the trajectory your trading plan intends.

Again you want to see each separate indicator producing signals that all align to produce a unified trade indication of the trend direction going forward.  

 

Each step in this process is anotiated with the indicators abbreviated name (SDG) and fellowed by the input/format panels corresponding number [##] where you will be able to turn on or off the indicator or change the controlling paramater variables. 

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1️⃣ Make sure that the direction of your trade is in alignment with the broader trend direction of your trade.  This is simple to accomplish. You want start with a high altitude, big picture look at what the stock or equity target is doing.

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⏺ SGC [16]  Turn on the Extra long Laguerre filter. It will quickly provide you with the long-term trend of this stock. See chart on right for example.

⏺ SGC [15]  Allows you to adjust this indicators length.

2️⃣ You want stocks that are actually swinging.  By this I mean you are able to see smooth repaticious parabolic price swings within your target stocks chart. See the Starbucks chart below. 

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3️⃣ The Early Warning System (bottom pane of chart above) is an excellent tool to find these qualities when the swings are not perfect, but still have good profit potential. 

4️⃣ Determine the profit potential of your trade by looking at the Hurst Cycles. When the stock price intersects with both the short term and long-term Hurst Cycles, your trade has a much greater profit potential than entry at short-term Hurst Cycles.  Short term Hurst cycles are bounded by blue lines.  Long term Hurst cycles have a red upper limit line and a green lower limit line (see chart below).  

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⏺ SGC [22] Short Length Hurst Cycles. Default setting is 5.   SGC [23] Adjust settings.

⏺ SGC [24] Long Length Hurst Cycles. Default setting is 20.  SGC [23] Adjust settings.

In changing the settings above you should alway make the long setting a multiple of the short setting.  For example the chart above is 5 and 20.  A ratio of 4 to 1 or one month and one week.   

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5️⃣ Hurst Cycle convergence dots are conformation of a turning point. Obviously you can't be confidant that these turning points are valid until a short period of time has elapsed, while a new trend direction becomes established. After a turning point and new trend direction is confirmed, a SWING•GENIE Entry/Exit dots will signal a your next opportunity. (see chart below)

"Volatility is greatest at turning points, diminishing as a new trend becomes established." -- George Soros

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6️⃣ You want to make sure that your target is not entering a period of consolidation or congestion.  This simply means your stock is moving sideways.  This often happens after strong trends up or down.  During periods of consolidation you are more likely to see conflicting trading signals in rapid succession. You can turn on a background flag that will highlight small rates of change.

⏺ (SGC [18])   ⏺ (EWS [20])   ⏺ (VPP [4])

Turn on the ROC Consolidation filters in any of the three SWING•GENIE indicators.

⏺ (SGC [19])   ⏺ (EWS [21])   ⏺ (VPP [5])

Adjust the sensitivity of these flag with the input parameter that fellows them. 

1️⃣2️⃣3️⃣4️⃣5️⃣6️⃣7️⃣8️⃣9️⃣🔟▶️⏺Price changes are preceded by significant increases in volume.  If you are considering an entry position from you screening process up to this point, then a highly relevant confirming indicator is volume. 

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1️⃣ Your first indication that an entry opportunity is at hand will be the generation of an Early Warning System dot. 

The small green DOT (1) is an Early Warning System flag, indicating that an impending turning point, producing a Buying opportunity, is on the horizon. Not a trade signal, but a warning or alert that a potential trading opportunity is likely to occur within the next few bars.  If the stock or equity rebounds the parabolic arc can be disrupted and a new  Early Warning Dot will be generated after the price again starts to decline.  

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ENTER SIGNALS

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EXIT WARNING

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EXIT

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PROFITS

 

A POND STOCKED WITH LARGE, HEALTHY AND EXCELLENT FISH

⏺The first goal of any trader is to not lose money!  Risk management and it’s twin, money management, are vital ingredients required to achieve this goal.  Picking stocks utilizing only technical analysis may lead you down a path to finding great entry opportunities in stocks that could be susceptible to rapid, unexpected and extreme volatility.  To avoid this I read earning reports and articles from a large variety of sources, including “The Street,” “The Wall Street journal,” and “Seeking Alpha.” There are obviously hundreds of other sources available to all of us.  I put solid stocks with good earnings and strong projected earnings into a screening portfolio on my Tradingview account.  When I am looking for new technical targets of opportunity, I go through this basket of pre-screened stocks to find safer and ultimately more profitable, technical entry opportunities, utilizing SWING•GENIE. 

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⏺One last note on increasing your profits by increasing your awareness of the stocks and the market you are entering.  I am a firm believer in situational awareness.  Situational awareness is paying attention to what’s going on around you. It's the ability to scan the avalanche of online information available to all of us and determine how it is affecting our trading environment and thus our trades. From this virtual window into our current trading world, we need to learn to sense challenges, opportunities, and dangers. As your awareness becomes greater, your instincts will also begin to play a greater role in your decisions on what, when and where to enter or exit a trade.  The following page provides a comprehensive list of valuable links that will further your efforts at accomplishing situational awareness.