Swing Trading Cycle

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To successfully navigate swing trading cycles, focus on aligning your trades with the market's prevailing rhythm, prioritizing risk management, adhere to your playbook, and maintaining emotional discipline.

Daily RSI-5 is one of several tools I use to best gauge the Market's cycle for my swing trades. We want to start looking for new positions when the indictor dips below 50 on strong trends and below 30 on sideway/weak trend. Stock leaders tend to start making their up move ahead of the other regular stocks, so stick with the top 20% leading stocks.

Gold is overbought, so wait for pull backs. QQQE is under 50 now to look for new longs. IWM is slowly coming down, but not under 50 yet. If we can get both RSP and QQQE both under 50, then that would be the ideal condition.

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