Swing Setups and Trade Management | Swing Trading (Days to Weeks)

good afternoon everyone john mcnichol and welcome to swing trading days to weeks we'll go ahead and we'll take a look at swing trade setups we'll do some practice trades and we'll finish off by adding a trailing stop so stick around all right well hey it's great to see those you that are live with us today such as vj kk wayne liu late night trader bill we have uh david rocky laurie lawrence radio wayne el diego sebastian richard george texas carlos and everyone else mr james boyd's helping out on the chat any questions uh that i am unable to get to he'll be more than happy to help out i'd like to thank those of you that are also listening to the archive session whether through the education tab at td ameritrade or on youtube make sure you click subscribe to the trader talks channel so you can be alerted to not only this webcast but some of our other fine webcasts uh taught by uh great instructors such as james helping us out on the chat today you can see the twitter handle on the screen at j mcnichol underscore tda if you wish to follow myself james is his first initial last name at jboid underscore tda and certainly it's our pleasure to be with you here today let's take care of disclosures we'll get right into it contents intended for educational information purposes only non-investment advice or recommendation of any security strategy or account type options not suitable for all investors as well as spread straddles other multi-leg options strategies often involve greater more complex risk in single leg option trades likewise keep in mind we encourage a practice which you learn here today with tools such as the paper money software keeping in mind that application is for educational purposes and successful virtual trading during one time period does not guarantee successful investment of actual funds during a later time period as market conditions change continuously also keep in mind as far as with options long calls or puts variations of that the entire cost of that position is at risk consider position sizing appropriately as well as with short options can result in assignment of any time regardless of the in the money amount and while this webcast may discuss technical analysis other approaches include fundamental analysis may assert very different views or may assert very different views and a stop loss order will not guarantee next execution at or near an activation price once activated they will compete with other income and market orders brief background for those of you that may be new to this webcast uh if you are new uh let us know on the chat we'd like to give you a nice welcome there you can see my background like james a few of us have been around the block a few times and uh certainly been involved in the markets uh in some cases a lot longer than we've been teaching these things so do appreciate you once again being here and let's take care of our agenda as mentioned we'll talk about some swing setups we'll do practice trade or trades and we'll finish off uh we'll talk about some of the existing positions that we had from last week and talk about possibly adding an example of a trailing stop let's go ahead and bring up the thinkorswim platform and uh another update for the market and uh this is uh something we were talking about last week uh with the correction in the market and that uh shorter term which potentially almost went into more of an intermediate uh going from days to weeks which is short term weeks to months would be more intermediate kind of borderline that as uh that was over the course of about a five to six week period uh we started seeing a potential break of that down trend and uh we also saw the potential for a higher low as we talked that higher low was set on wednesday with kind of more of a hammer or kind of like a dragonfly doji and then with a clear break a hold price trading or closing above the high the low day getting that bounce and having a successful swing uh as price action taken out a previous high not only a previous high but two previous highs some may even look at three previous highs breaking that downtrend kind of forming that of the inverse head and shoulders a common reversal pattern that we talk about uh in our breakout and reversal pattern webcast which is tomorrow at noon eastern time and setting up the potential for prices to uh test or take out some of those previous highs so very strong movement momentum there on the s p and you know essentially this is for this class is what traders are looking to learn or attempt to capture is these swings in price action uh over the course of several days may roll into several weeks and based off of previous moves uh basically from a bullish perspective looking at highs and lows as price pulls back looking to capture a similar swing that goes in the direction of the trend whether from a bullish perspective or as well even from a bearish perspective although i don't think i have any existing bearish positions at the moment but just thinking about some previous uh downward moves uh as far as with the trend i think actually one of the last ones i think we may have done was electronic arts as far as with some of the previous downward moves all right now not all the indices all the indices are generally up today nasdaq as well potentially with that reversal kind of highlighted how gaps can act as support and resistance so it was around that fifteen thousand forty area based off the gap as well as a previous high it was a 55 day moving average kind of given a bit of a confluence with that price action we're high or low price gap in and breaking through that resistance kind of a small w and a successful swing as price has taken out some of the the previous high there uh i believe the uh as we look at the other ones such as the dow uh dow as well kind of more of that w pattern and looks like potentially testing that higher range and interestingly enough the russell and you know this has been a theme talked about quite a bit as far as with the cyclical stocks uh interestingly the russell has lagged a little bit over this last week now whether that's an overall positive sign or not something to potentially keep an eye on uh a triangular pattern that we've uh have gone through multiple times the other day or actually that would have been friday a very strong move for the russell but then went ahead and faded in the end of the week a little more indecision yesterday technically we do have a hold as price is trading above the high of the low day so breaking out retesting as broken resistance potentially acting as new support and getting a a bit of a kaholt uh still up about four tenths of a percent uh and again compared to some of the other indices uh lagging a little bit there uh one can go ahead and take a look at some of the sectors here over on the left as far as what some of those leaders are and leaders are in utilities healthcare so a little more defensive there and from a technical standpoint you know healthcare which has lagged a bit uh compared to some other indices or other sectors uh has been demonstrating um some relative stronger moves today some potential reversals out there uh energy still uh up and the only laggards uh being both on the consumer areas uh consumer side it's possibly concerns on the inflationary front for both staples and discretionary stocks all right so with uh some of that under our belt let's go ahead and talk about a couple swing setup examples and you know a lot of this based off of what we've seen on the market some of them may be tied to some of the sector action as well once again a swing trade is what we're looking to capture a relatively shorter term momentum over could be a few days could be going into several weeks uh and you know a lot of these may be tied to existingly strong trends where prices may be bouncing off support or we may see some patterns again talk more in our breakdown and reversals tomorrow where prices may be breaking through a resistance and looking to capture that momentum to the upside or in the case of a bearish trade looking those breaks below support to capture some of those downward moves so with a couple of our examples that we'll take a look at here today and feel free to ask any questions there we'll try to mix it up a little bit uh mosaic this is actually uh i already have an existing practice position from the breakdown reversals uh going well back to i believe uh last november there you know one of the tools you can potentially use on the platform uh is if you come up to the gear on the chart you can click on that by clicking on the gear under the general tab although i'd i've heard some mixed results on if this comes up on some accounts or not hopefully that bugs been fixed but one can select show trades and go ahead and appear on there and there you can see a good example from a bullish reversal reversal of a bullish trend and and attempting to still stick with that trend um i think it was called out of a hundred shares uh in a previous class it sold some covered calls but still have a practice position on that well if we zoom in on where we are right now and identify that pattern uh one can potentially see what's referred to as a bit of a a flag or a small rectangle where we can see a sharper move in price followed by a consolidation and you know a little more of a longer consolidation relatively speaking when you see some of these bull flags where these pull backs may only be just a couple of days a little more of potentially a flag in a stiff breeze going sideways now what we can do is on our drawing tools let me go ahead and push this off to the side here uh go to our drawing tools up at the top do a horizontal line you know to kind of illustrate that high which is at 4222 and then what uh some traders may look for is whether to hold or in this case since the price goes a little more sideways a break above that resistance now where would a potential target be based off of that move and this may be helpful for those of you that are very new and trying to identify highs and lows we have a nice tool under the patterns tool on the platform if i click on patterns select show patterns and then drill down under the select patterns here and this is part of the candlestick tab so we'll click on that and it's the williams fractal the williams fractal attempts to identify some of the candle reversals this may help you at least back test or look at holds the bounces off support as well as the kabloads or the bounces off resistance or those highs we'll double click on that we'll leave the default settings and we'll click apply and okay and you'll see these little fractal points representing highs and lows into trend this can help you potentially identify trends as far as higher highs and higher lows which we have a good overall trend supported by moving averages here such as a 55 representing the intermediate and even short-term moving averages running like railroad tracks i know james uses some various combinations as well looking for a target for a swing one way is going back and looking at a previous low as well as a previous high and so here we can see from this low to this high going from around 37 up to 42 you know that's a five dollar move so some traders may expect that the price breaks out to possibly make a similar move and and you know it may not just be one swing if i go and take the drawing tool and we'll select a diagonal line you know i can go back to some previous swings here and utilizing the diagonal tool can help you do that you can see that price and percentage you know that's about a six dollar swing there as you can see right here and what you can do is when you draw that line is just click left click on the low spot drag it up to the high spot but don't click just kind of shows you that price there and then you can go ahead and right click to get rid of it and then go ahead and measure another swing and some traders may look for an average and there's a five dollar swing there okay so i'll go ahead and i'll mark that and then what we can do uh is take uh that swing we'll right click i can do a duplicate drawing remember when in doubt right click on the thinkorswim platform we can go to the lowest point of that flag and then go ahead and project that out and that would be a potential price target now there's no guarantee that the price will make it to that level but that's something that some swing traders may attempt to do so upwards around that 45 level so if the price was to break above 42.22 you know that would be about a a three and a half dollar move okay a few ways of trading this uh you know we could do examples of a a stock trade and so these are some of the common uh types of trades that we've done we can do an example of a stock trade which we'll do for this one kind of be consistent with the existing position uh we can go ahead uh and do an example of an option trade uh kind of more of a defined risk less capital involved uh or also look at spread trades so we'll attempt to do uh you know the stock trade for this one and in some of our other examples maybe do a spread or an option trade and uh yes dg wearing the jacket uh you know former formal versus a little uh informal uh i i plead uh uh it's a little bit cooler in the basement today so uh this is more of comfort uh versus uh fashion so thanks for asking all right so let's go ahead and do a practice trade here for this example and uh what we'll do uh is we'll we already determine where the potential target is now the other thing of looking at too is if we were to utilize a stop order uh putting a stop order below a low in that pattern and if we look at the low in this pattern as i'm trying to reset uh the low here for this day is uh 40 dollars and 68 cents so let's say we'll set an example of a stop one percent below that low so 40 dollars and 68 cents we'll bring up our calculator go to our gadgets here we can switch the gadget bring up a calculator and again so it's 4068 we'll do 40.68 times 0.99 that'll be one percent below that low so that would be 40.27

i'll go and i'll grab one of these horizontal lines and do a duplicate and we'll use that to represent visualize that potential trade when you drop that there you can always right click edit properties and put in that specific price we'll plug in 40.27 and then we can go ahead and you know make whatever color we'd like i'll make this red representing that potentially that's where we may set a stop loss now keep in mind a stop loss is not guaranteed to fill at a particular price we may set that as a trigger price and if price hits that it'll trigger an order in our example it's going to trigger a market order and that would fill at whatever the marketable price is sometimes prices can gap below there can be slippage and the loss can be a bit more hence why in some of our short-term trade examples you know options are you know another way of defining that risk a little bit more but we'd like to mix up our different examples and the other as far as triggering to get into the trade one can use a stop order to get out of the trade but as traders are learning on entries you can use a stop order to get into a trade a lot of common uses to use limit orders which is fine if the price is at or lower than the current price in the case of a long stock position but what if one wants to enter if price is trading higher and break in through that resistance if one's looking to trigger at a higher price then we need to use an example what we call a buy stop so i'm going to do is i'm going to simply right click on the chart here we're going to do a buy custom with oco bracket this is kind of a common uh example for doing a swing trade if we have an idea of what our potential entry is and our potential exits whether desirable outcome by hitting a target on the limit or if price goes against us having an exit uh if the price goes against now with that uh let's address time frame uh in the case of the exits we want to make these gtc for good till cancel so these orders would remain working uh if we're in the position uh oco representing that uh we have two orders that if one fills the other one will cancel out and so it's a great example of being able to plan a trade and trade a plan all right and since we already have that information up on the chart here uh we can actually take care of those sell examples where if we had a target of 45.73 we'll make that on the limit price that's the better price or the better outcome think limits as better price and let's go ahead and get that typed in right so 45.73 potential target uh the stop which is on top of that candle there looks like it's dollars and 27 cents so i'm gonna go ahead and plug in four zero point two seven let's try that one more time four zero point two seven okay so we basically have those uh exits taken care of so the idea is if we are in the trade and if it hits 43 45 and 73 cents attempt to lock in the gain and then it would cancel out that stop order the price goes down and hits 40 27 first and then the trade would be stopped out uh at whatever the market price is and uh and then that would be at a resulting loss now let's talk about the entry on how we can put this in now notice the order defaults to a limit order uh and it says 42.41 what that means is if the price is trading at 42 41 or better in this case lower than it would go ahead and fill that trade now with the stock trading at 41.82 currently if we place this order

right now it would fill because the stock is trading at 42.41 or better in this case lower but maybe that's not the intent here the intent for our breakout example is to trade as the price goes higher so we got 42.22 and uh one may set a dollar amount above there we've done examples of about 20 cents above that level so that would be uh 42 42 44. so let me just go ahead and right click on that line edit we'll put that uh 20 cents higher 42.42

we'll click ok so we got that visualized there i'll go back to the order down on the bottom here we'll click on that and then now what we'll do is we'll go to the order we'll click limit and we'll change this to a stop limit now once we go and change that to a stop limit you'll notice there's now two prices here let's focus on the stop or the trigger price which we had identified that if the price goes above 42 20 42 42 42 we're looking to enter into that trade in an attempt to capture that momentum so we're going to go ahead and plug that in 42.42 is the trigger price now there's a second price notice the second price is a limit if we hit that 4242 we're utilizing a limit to basically define the upper limit on how much we're willing to pay for the stock this would limit uh against being in a stop market where if the price gaps to the upside one may be paying a much more higher price than they would expect so we got a little control over the price and in this example you know maybe account for a little slippage you know 10 or 20 cents above that trigger price so i'll go ahead and i'll do an example of uh 10 cents we'll say 52 okay and some encourage you to practice with you know what's the most you're willing to pay for that example now by default uh we start off with 100 shares now as a standpoint of risk theoretically if we were to enter in at 4252 and we had a stop of 40 and 38 cents uh that's a difference by of about what two dollars um you know about two dollars and 15 cents there are abouts uh so some traders may look at that for a standpoint of risk as far as two dollars 15 cents per share and determining how many shares to buy based off of that risk so for instance if we wanted to risk about 500 dollars we can go ahead and take that 500 divided by 215 and again i'm rounding a little bit here theoretically that means we can do 230 some shares now if i go ahead and change this to let's say 230 shares went ahead and type that in now notice there's a chain link here if i click on the chain link that should match the sell orders to that entry order now if we go ahead and take a look at confirm and send we can confirm the order now there is about a half hour left to the market right now this is set up i believe as a day order so if we do have a horizontal level of resistance which we do for this example okay whether this happens today tomorrow the next day if we're looking at this as far as a horizontal breakout we can also make that entry a gtc for good till cancel so i'll go ahead and i'll do that for this example whereas if the price was pulling back in the case of a flag then we may allow that order to cancel and look for a better entry point all right so we got that trade setup if i hit confirm and send a couple things to make note is how much equity is being locked up in the trade so this is about ten thousand dollars or just shy of that so keep in mind with a smaller account that could be a significant amount um this account i believe is over five hundred thousand uh so as an example of allocation uh ten thousand is a very relatively small amount of this account uh whereas if you had a five thousand dollar account obviously that would be a big well 5 000 what would it do if it was a 50 000 account that would be about 20 so keep that in mind uh even though theoretically uh we're looking to be stopped out at 40 38 prices again no guarantee of being filled you know if there's a gap and let's say the stock was trading at 35 you may be exiting close to 35 and that's going to be more greater than the theoretical two dollars and fifteen cents per share that we were talking about so keep an eye on position sizing and as far as allocation on the amount that you are willing to risk so i'll go ahead and we'll do this here and also keep in mind if you have additional shares i already have a position on this practice account as well but we're looking to capture a shorter term move so i'm going to go ahead and double check again stop is going to be 42 42. if it hits 4242 it's going to attempt to buy it at 42.52 or better once that is filled or if it is filled it will trigger the oco one cancels other and if it trades up to 45 uh 84 uh it'll go ahead and close out or if it trades down to 40 38. now i just notice as i'm reading this and that happens if you do adjust the entry sometimes it may adjust what your original orders were so for instance i had a stop of forty dollars and twenty seven cents that's why this is confirm and send and not send send if i need to change something or make an adjustment we can go ahead and do that so i think i was at 45.73

just be consistent and there we go now we can do a confirm and send and send and we have that example now notice that didn't get filled right away because we have a trigger for the price to be trading through that level so that's an example of what we call a buy stop to capture a potential breakout commonly used for breakout trades there's other examples where we may use contingency orders to enter into an option trade let's say based off the stock price i may not have time to do that here today but let's see what other setups we have and come up with another example now i notice in the chat uh and some of you are asking for a survey so i assume you enjoy what you're learning here today i don't see a survey but you do have an opportunity to click like if you click like on the uh youtube other people have an opportunity to see that and also if you want to on go and see what you have we have here on t ameritrade education is uh consider click and subscribe uh to the trader talks channel and that way you can be alerted to uh not only sessions that i do but sessions that james does as well it's right here in the scratch pad once again uh on youtube go to trader talks and click like i probably need to start pushing that link out and have that a little handy for you alright so what else we got going on um let's take a look at you know some other material stocks this is uh steel dynamics uh some we may take a closer look at tomorrow to see if it breaks it actually did break intra-day and this is a good illustration folks of the pros and cons of a buy stop kind of visualize the previous example we were looking at if the price trades to that level it would trigger a order and a potential entry but there's no guarantee that the price will actually close above that resistance in many cases prices may fade back below that so there could be a consideration and look at the pros and cons uh is look for internet in towards the end of the day if there's a break that may limit the fade but then again we've seen plenty examples of long range days where if you wait till the end of the day you may have missed part of that move so consider practicing different or similar techniques on the thinkorswim platform and we'll keep an eye on examples such as some of these material stocks uh that may be showing some signs of recovery there and this is also post earnings there uh let's look at first solar fslr another example of a breakout we're looking at this earlier but notice it did fade off of that high again something to maybe take a uh we'll take another look at tomorrow in the breakout and reversals class uh common pattern uh called a cup and handle sometimes not as common but uh some traders may easily recognize uh the idea of prices hitting high selling off forming a base rallying up and then kind of flagging forming a handle uh for solar you know kind of more of the more clean energy play as uh oil prices continue to rise we can see a good overall trend swing traders may also look to find a price channel if i select some parallel drawing tools i can go ahead and draw connecting the lows forming that support left clicking and then we have a upper band as far as the upper part of the channel and swing traders may look to attempt to trade the channel now we're off the lows on this one but still one looks at the swing if it was a trade in the upper part of the channel may see a similar swing now this is a hold prices have closed above the high the low day but have kind of faded if we were to have a buy stop earlier in the day would have triggered a trade on the bounce but now since it's faded maybe some traders may be looking for a break above that high range and again we got the williams fractal on there as far as the previous swing if i go to drawings and let's select that diagonal line uh draw from the low to the high there's a previous swing if i right click on that and let's say do a duplicate again we'll go to the higher low and a bit of a confluence there with the swing potential swing move and the upper part of that channel okay so we'll uh keep an eye open on this one uh possibly uh for tomorrow or you know some traders may you know speculate well hey it's a hold uh you know if the price is closed above the high the low day and the trend is up uh go ahead and enter that trade and maybe what we can do here for an example is a defined risk trade if we were to do a hundred shares that would be about ten thousand dollars uh but is there a way for us to potentially profit from this move uh you know on a practice trade and you know with a target in mind that may be closer to the upper part of that channel you know let's say along the lines of around uh that 115 level now there is an earnings event uh which makes it all the more important uh to define risk on the trade i'm gonna go to the trade tab and uh another strategy that we've done and uh we actually had we did some last week that we'll take a look at before we go is doing a a spread trade in this example a long call vertical which is a limited risk limited gain strategy where we buy one option we sell another option where we anticipate the price to go define risk between the spread as well as defined gain and so we know what our potential outcomes may be before we place the trade so uh we'll go ahead and we'll look at 38 days out we'll look at these weeklies weeklies sometimes may have some wider spreads as an example we'd like to see the spreads to be no more than about 10 of the ask price we got a spread here of about 30 cents so uh that's about half uh or about five percent of this uh width here let's say i go ahead a little bit maybe in the money we'll look at this 107. we'd be paying about six dollars and 45 cents i'll be about 645 dollars per contract that's a lot less than tying up 10 000 and then let's go ahead and select a strike that we believe the price may be trading up to now if we're looking for a smaller move we can select a smaller strike that would be a higher probability if we want to be more directional we can go ahead and select wherever we believe the price to go so let's say as an example i'll do the 107. i'm going to click uh buy for that one and that's a single option and i'm going to minimize it we're going to go to that 115 i'm going to hold the ctrl key and then i'm going to go ahead and click sell now notice we reduce the overall cost of the trade to three dollars and 28 cents times the multiplier on equity options it's typically going to be 100 shares or credit 900 shares times a hundred okay uh if i hit the confirm and send this is where we can see our defined risk which is what we pay for that spread if i'm willing to risk a thousand dollars on this trade as an example we can do this three times so i'll go ahead and do that hit confirm and send so 984 the potential profit would be 1400 if we're trading above 115 uh towards the end of november now if we have a strong move over the next few days or weeks we may be able to capture a significant part of this and an example that we've done is about fifty percent of that maximum gain we're able to get about fifty percent of that maximum gain or a fifty percent return on risk you know all examples of different targets we can do that the other nice thing with this example is not only define risk defined gain but it doesn't necessarily have to move as strongly as an individual option would to be profitable in this case it just has to be about two dollars above where it is now at expiration for it to be profitable minus any commissions so i'm going to go ahead and let's go back in let's go ahead and send this through as an example i'm going to click send and notice we went ahead and we got that filled and so the ideal outcome for this example is that the price does continue breaking higher and trades up at or above or gets into that upper channel and if we do see a stronger move over a relatively short period of time we may be able to capture a percentage of that overall game okay and let's go ahead and talk about that since uh as we look at our examples uh we did a couple swing setups we got two practice trades in let's look at some existing positions and we'll go ahead and add a trail and stop and this is something that will probably build up again next week so i'm going to go ahead to the thinkorswim platform we'll go to our monitor tab and these were two practice trades we did last week that were both call spreads and we were targeting about 50 percent of uh the risks that we were taking and with still 31 days left we've actually have reached some of those potential profit targets you can see some of the gains there now there's no guarantee that those outcomes would continue uh but we've seen some pretty good moves on both salesforce and that cyber cyber mark so if i bring up crm you can see that a successful swing not all the way to the target but nevertheless in a good portion of that swing and so you can see the profitability on that example with salesforce and then uh cybr as the price was breaking out on a hold another example of successful swing taking out those previous highs so you know good sign of profit management you know we can right click create a closing order and lock in those gains now some traders uh may scale out of it if they believe that the price may continue going higher where there's no guarantee of that may be able to look to try and capture more of that spread uh but for our example i'll go ahead and i'll close both of these examples out by right clicking to create a closing order and right click again create a closing order and we'll send that through and i may need to confirm that uh i'm able to get those examples done there it looks like cyber filled salesforce uh still working on that okay um baidu was one i did uh offline although talked about some of these chinese adrs uh baidu's made a pretty successful swing this is just a hundred shares but this was locking up about sixteen thousand dollars in capital some traders may look at you know options or spreads as well to define that risk now if i bring up baidu bidu we can see an example of a successful swing uh as the price had a hold this was the example of the entry as the price bounced and making a similar move to what we did now some traders may just go ahead and sell right into that strength you know if we've reached a target we can close that out some traders are willing to give up some of those gains by doing a trailing stop now keep in mind stops are not guaranteed to fill at a particular price and one technique that we've utilized uh is utilizing an indicator called the parabolic sar parabolic stop in reverse if i go ahead and i already have a style loaded up on that and what i'll do is at the end of this session uh if you play it towards the end in the archive uh i will have a link to the trail and stop session which takes this one a little more in detail but let me see if i can bring that up we we added a parabolic sar which is a technical indicator that one can add uh by going to the gear or not the gear but the flask and bring up parabolic sar uh and we can actually do a conditional order based off of this indicator now i did do a couple of tweaks if you're looking at it these are not the default settings but these are the settings that i have on the chart and that will utilize for a trailing stop okay i'm going to go ahead and click ok and dj also mentioned a good point too if we have 100 shares could we sell 50 shares and put a trail and stop on the other absolutely in fact i will take that as a good example here so i can right click on this create close and order sell i'm going to change this to 50 shares you get a gold star there dg dg and do a confirm and send and send so we sold 50 shares into strength but willing to see the rest possibly trail higher so with that if the price goes ahead and goes below that parabolic or if the price rolls over and the parabolic appears above the price which is at a reversal then it will go ahead and close out the trade so what i can do is do a conditional order based off of this parabolic order so i'm going to do is i'm going to go back to our monitor tab i'm going to right click create close and order so there's the other 50 shares but i'm going to change this to a market gtc and the consideration is doing this on liquid stocks and options because that is a market order and then we're going to go ahead and click on the condition which is a little gear that will appear i'm going to click on that we'll bring this up and this is where we can go ahead and put our conditions for this order i'm going to click on the symbol which is baidu it comes right up i'm going to click on method and then we're going to go down and select study now when i go to study i'm going to go ahead and select edit this brings up the editor for that study and by default it may have an indicator in there you'd want to go ahead and delete that which is what i'm going to do and then i'm going to go ahead and select add condition we'll click add condition click on the drop down and basically i'm going to go to the price and select the close so basically looking for the last price and if it ends up being less than i'm going to select less than go to the second condition and select study and look for that parabolic sar so there's a parabolic sar i'll click on it so i'm going to say that if the price is less than the parabolic sar it's going to go ahead and close it out now here are the settings for that that's the default but if you looked at previously what i showed to account for kind of a shorter time frame and a shorter swing i change this to a point one and a point three now your results may vary you've welcome to practice with that and then click save so what i've done is basically create a conditional order based off of the indicator and i'll try and implement this more next week and some of our other practice trades maybe some of the ones that we may have already done today if they don't get filled we'll click save now when i go ahead and do the confirm and send this is what is set up for the remaining trades and we'll review this one to see what the outcome is if the close is less than the parabolic sar whether it touches or reverses it's going to close this out at the market price so we'll see what the pros and cons are of doing that we'll send that one through and we'll follow up with that next week all right folks so this is what we went ahead and covered today we did some swing setups we did one on a stock trade we also did practice trade on a uh spread as well also we went ahead and added a trailing stop on an existing stock position no guarantee would be filled at a particular price but we'll see what the potential outcome is next week we also initiated uh some exits based off of some profit management i would encourage you to practice what you learn here today folks and more importantly as you practice with them on tools such as paper money translate that knowledge into wisdom it's great that people like me and james can teach this stuff but more importantly what are you able to do and apply with it so once again encourage you to practice with paper money and remember in order to demonstrate the functionality of the platform we did have to use actual symbols keep in mind td ameritrade does not make recommendations or terms suitability of any security or strategy for individual traders any investment decision you make in your self-directed account is solely your responsibility have a great day folks james thanks for helping out we'll talk to you again real soon bye now you

2021-10-20 16:26

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