In Day 11 of the 30 days to master part-time swing trading challenge we use volume to analyze accumulation and distribution patterns in stocks and markets.

Accumulation and Distribution: Keys to Analyzing Volume

Let’s keep this simple by thinking of accumulation as buying, and distribution as selling. A bullish stock shows strong signs that a stock is being accumulated or a high level of demand.  Conversely, a bearish stock shows more supply than demand in the form of distribution. The more accumulation we identify, the more buying pressure there is on the stock. The more distribution, the more sell-side pressure. As this pattern gets stronger and continues longer, trends in the direction of the pressure form.

How do we identify accumulation and distribution?

By analyzing volume patterns.

Identifying The Volume Patterns

As we have already noted, positive volume patterns signals accumulation, while a negative volume pattern signals distribution.

The simple way to think about accumulation and distribution volume patterns is to simply eyeball the chart and study the volume bars. Pay close attention to the size of the bars, especially the bars that are outside the average size.

If the big bars are green, and the smaller bars are red, we can decide that sharer is more buying than selling volume. This is accumulation.

On the other hand, if the big bars are red, and the smaller bars are green, there is more selling than buying. This signals distribution.

Keep in mind that we are not focused on one or two individual bars, but overall patterns.

Multiple bars make trends.

The Distribution and Accumulation of Twitter

Take a look at the Twitter chart. Notice that from 2014 thru 2016 the stock was in a downtrend. However, there were periods where price action alone would indicate a potential bottom or reversal. However, every one of the bounce attempts failed and were actually textbook short opportunities.

Now it’s easy to say this now, but how do could we know during this period that twitter was a sell?

By the volume pattern.

During this two year period, red volume dwarfed green volume. It was not until late 2016 and early to mid-2017 that we started to notice a change in the volume trend. Now big green started to outpace red volume.

This signaled a dramatic shift in the volume trend. Now there was more buy-side pressure than sell-side, which predicted the 2017 and 2018 uptrend.

How to Analyze Volume in Uptrends, downtrends and Rangebound Markets

Now that you know what to look for, keep in mind what type of trend a stock or market is in, and then analyze the volume pattern according to their parameters.

1. If stock in uptrend with positive volume pattern (accumulation): expect continuation of uptrend
2. If stock in downtrend with negative volume (distribution): expect continuation of downtrend
3. If stock in uptrend with negative volume (distribution): Expect reversal at some point
4. If stock in downtrend with positive volume (accumulation): Expect reversal at some point
5. If stock rangebound or bottoming with new accumulation: Expect breakout at some point
6. If stock rangebound or bottoming with new distribution: Expect breakdown at some point

Now that you know what to look for watch today’s video and then do the exercise.

The Day 11 Exercise

1. Pick 10 different types of stocks
2. Go back 5 years and analyze the volume patterns during each chart’s major uptrends, downtrends and range bound phases.
3. Now study the current patterns in these stocks and predict future outcomes.

Previous Posts

Day 1: Getting Started

Day 2: Analyze the Market

Day 3: How to Use Moving Averages

Day 4: Managing Risk and Setting Stops

Day 5: Managing Risk on a Macro Level

Day 6: Managing Risk and Taking PROFITS

Day 7: The Reward to Risk Ratio

Day 8: Stochatic Indicator

Day 9: Case Study Webinar Replay

Day 10: 5 Keys To Trading With Volume

Swing Trade Service

This swing trading service is great for those that work and can’t monitor the computer all day. We have in-depth nightly reports on the gameplan for the day/week and all stock picks that I trade will be alerted and emailed to you.

Check out the Swing Service HERE

Follow me, Paul Singh AKA “TheMarketSpeculator” on Twitter or email me at SinghJD1@aol.com

Important Links
Link to YouTube Live-Stream on June 26th

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The post How to Analyze Volume Patterns to Unlock Accumulation and Distribution of Stocks (30 Days To Master Swing Trading Challenge Day 11) appeared first on Bulls on Wall Street.

In day 8 of the 9 days to master part-time swing trading challenge as I show you how use the stochastic indicator to trade overbought and oversold conditions in stocks and the overall market.

The Concept: Overbought and Oversold

As swing traders, our favorite stocks and market are those that show strong momentum (rate of change in one direction).

However, in momentum markets there usually comes a point where the momentum becomes so strong and outside of the normal trading range that the rate of change in price action becomes unsustainable.

This is known as an overbought or oversold condition.

An overbought or oversold condition is where price is likely to consolidate or reverse.

However, there is no guarantee that this will happen.

In fact, in some supercharged markets, overbought or oversold levels can persist for a long time without a reversal or consolidation. We will talk about in later challenges, but for now let’s work on identifying overbought and oversold levels.

Stochastics

As you develop as a trader, you will be able to identify overbought and oversold conditions without any indicators, just by analyzing the price action. That being said, the best objective way to analyze overbought and oversold levels is to use the stochastic indicator.

The stochastic indicator measures the rate of change, or acceleration, of a stock.

That’s the extent of what we need to know.

While there is a formula for it’s calculation, all we need to know to trade effectively is how to use it (you don’t make any money by knowing the formula and plugging in the numbers!).

Here are the keys to using the indicator

1. Set the indicator at 5,3,3
2. Classify a stock or market as overbought at 70+
3. Classify a stock or market as extremely overbought at 85+
4. Classify a stock or market as oversold at 30 or less
5. Classify a stock or market as extremely oversold at 15 or less.
6. If the indicators reverses sharply, expect reversal
7. If price action stays in the overbought or oversold zone, expect trend to continue.

Remember, we are not going over any setups today.

Instead we are learning how to use the indicator.

Keep in mind that these classification are just a guide, and not actual buy or sell signals. Buy and sell signals take into account many factors along with these levels.

Watch today’s video for a more in depth analysis with charts on how and why we use stochastics.

The Day 8 Exercise

1. Pull up the charts for SPY, QQQ, NFLX, AMAZN, FB and GOOGL.
2. Identify every overbought and oversold condition over the past 2 years.
3. Note where they because overbought/oversold and where levels became extreme.
4. Study price action and patterns after these levels were hit.

Previous Posts

Day 1: Getting Started

Day 2: Analyze the Market

Day 3: How to Use Moving Averages

Day 4: Managing Risk and Setting Stops

Day 5: Managing Risk on a Macro Level

Day 6: Managing Risk and Taking PROFITS

Day 7: The Reward to Risk Ratio

Swing Trade Service (Limited Time Offer Get 50% Off)

This swing trading service is great for those that work and can’t monitor the computer all day. We have in-depth nightly reports on the gameplan for the day/week and all stock picks that I trade will be alerted and emailed to you.

For taking the initiative with your trading education with this series, we are offering you 50% off all swing trading packages.

Note that this coupon code will only be valid for another 2 days before it expires. Use coupon “SWING50” at checkout to get 50% off!

Check out the Swing Service HERE

Follow me, Paul Singh AKA “TheMarketSpeculator” on Twitter or email me at SinghJD1@aol.com

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The post How to Trade Overbought and Oversold Conditions with the Stochastic Indicator (10 Days To Master Part-Time Swing Trading Challenge Day 8) appeared first on Bulls on Wall Street.

Are you shocked?

Probably, because most traders panic, make bad decisions and lose their shirts during market selloffs.

During our last market selloff in late June, Trade Report members and I had some of our biggest trades of the year. Check out the trading stats.

The cycle for most traders starts with a few months of fantastic trading as the market ramps up, a bit of a slowdown during consolidations, another big run where said novice trader starts envisioning future riches, and then the dreaded selloff that wipes out months gains.

It does not have to be this way.

In today’s video I show you how to break the selloff cycle with an automatic low risk-high reward play that allows you to master market selloffs and profit while the dumb money is losing. The beauty of this trade is you don’t have to spend hours analyzing setups or make rushed, often panicked decisions. Instead,  you use a a simple 2 minute process that allows you to hedge your account and potentially make big gains.

Watch, learn and let me know what you think!

This swing trading service is great for those that work and can’t monitor the computer all day. We have in-depth nightly reports on the gameplan for the day/week and all stock picks that I trade will be alerted and emailed to you.

Check out the Swing Service HERE

Follow me, Paul Singh AKA “TheMarketSpeculator” on Twitter or email me at SinghJD1@aol.com.

The post How to Trade A Market Selloff in Under 2 Minutes appeared first on Bulls on Wall Street.

The third trade in our “live trades” series reveals how I trade the rubber band oversold bounce setup.

It’s a fun setup. It’s a profitable setup. It’s also a commonly mistraded setup.

There are key mistakes traders are making when trying to catch oversold bounces; in today’s video I reveal exactly how to trade the rubber band setup profitably in 4 easy steps that focus on:

1. Extreme oversold levels
2. Key entry signals
3. Volume
4. Exit strategy

This is a live trade alerted to Swing Trade Report members seconds after entry. We have taken partial profits and moved our stops up to lock in big gains.  Once the “lotto” position is complete, I’ll update with another video.

Remember, our example is another in my series of live trade videos which makes it must watch: you’ll get into my head and see exactly how we plan and manage the trade as it develops. I’ll be back with another video on the exit.

This video is the third in the “Live” trading series.

Check out the first video to understand how $BRZU made our watchlist and the second video highlighting the gap down reversal trade in $NFLX. .

Remember, members of the swing service get all of these trade alerts intraday in real time.

This swing trading service is great for those that work and can’t monitor the computer all day. We have in-depth nightly reports on the game plan for the day/week, and all stock picks that I trade will be alerted and emailed to you.

Check out the Swing Service HERE

Follow me, Paul Singh AKA “TheMarketSpeculator” on Twitter or email me at SinghJD1@aol.com.

The post How to Swing Trade the Rubber Band Bounce Setup: UCO LIVE TRADE appeared first on Bulls on Wall Street.

How effectively are you swing trading the earnings gap down reversal setup?

Most likely not well, if you even trade the setup at all. Neglecting this setup is an unfortunate and expensive mistake that often does not show up in your trading stats.  As a result, specifically the earnings gap down reversal, you are not profiting from one of the most consistently profitable low risk-high reward setups around.

Here is why it’s neglected: the average swing trader doesn’t know how to trade gap downs!

Most commonly accepted gap down theories (remember most common theories don’t work!) focus on shorting the gap down as a downside continuation trade. The idea here is the downside momentum catalyst leads to a continuation move. This sounds great in theory, but in practice, it often plays out different.

Gap downs in momentum stocks that are not yet in full-fledged downtrends often reverse while flashing strong long entry signals. In other words, while most are looking to short, profitable traders are stalking countertrend long signals.

This is another classic setup where it pays handsomely to go against the crowd.

In today’s video, I show you how and why I entered Netflix ($NFLX) using the earnings gap down reversal strategy. The trade also illustrates the moving average remount setup and the moving average sandwich exit strategy.

You will learn how to:

1. Trade the earnings gap down reversal
2. Apply the moving average remount setup
3. Analyze moving averages for entry and exit signals.
4. Apply solid risk and trade management concepts.

Remember, our example is another in my series of live trade videos which makes it must watch: you’ll get into my head and see exactly how we plan and manage the trade as it develops. I’ll be back with another video on the exit.

This video is the second in the “Live” trading series. Check out the first video to understand how $BRZU made our watchlist.

Remember, members of the swing service get all of these trade alerts intraday in real time.

This swing trading service is great for those that work and can’t monitor the computer all day. We have in-depth nightly reports on the game plan for the day/week, and all stock picks that I trade will be alerted and emailed to you.

Check out the Swing Service HERE

Follow me, Paul Singh AKA “TheMarketSpeculator” on Twitter or email me at SinghJD1@aol.com.

The post Swing Trade Secrets: How to Swing Trade Earnings Gap Down Reversals with $NFLX appeared first on Bulls on Wall Street.

If the answer is yes, then you are in luck. In today’s video, I show you how to swing trade the earnings breakout setup in 3 easy steps.  That’s right, 3 easy steps! I know it might sound simple, but remember, successful traders have an uncanny ability to make complex processes simple.

That’s exactly what we’ve done with this earnings breakout setup.

In today’s video I review my latest winning earnings breakout trade in momentum stock $EXAS and show you the 3 simple steps for taking this trade:

1) Breakout

2) Low Float

3) Volume

Watch, learn, SHARE and let us know what you think!

Today’s Treat: The updated 2016 Swing Trade Report Stats:

http://bit.ly/1NFgq7C

Remember members of the swing service get all of these trade alerts intraday in real time.

This swing trading service is great for those that work and can’t monitor the computer all day. We have in-depth nightly reports on the game plan for the day/week and all stock picks that I trade will be alerted and emailed to you.

Check out the Swing Service HERE

Follow me, Paul Singh AKA “TheMarketSpeculator” on Twitter or email me at SinghJD1@aol.com.

The post How to Swing Trade Earnings Breakouts in 3 Easy Steps: $EXAS appeared first on Bulls on Wall Street.

A special treat this week since you are receiving the full Daily Swing Alerts video.

In this video we talk about trading around this week’s big market mover “brexit”, a potential flight to gold and how to trade it, review our current positions and go over the longs and shorts focus list.

Check out the updated 2016 Swing Trade Report Trading Stats up 38% in 2016. Full results doc HERE.

Watch, learn and let us know what you think!

Every Sunday I put out a Free Weekly Swing Report. Make sure to sign up so you don’t miss it!

This swing trading service is great for those that work and can’t monitor the computer all day. We have in-depth nightly reports on the gameplan for the day/week and all stock picks that I trade will be alerted and emailed to you.

Check out the Swing Service HERE

Follow me, Paul Singh AKA “TheMarketSpeculator” on Twitter or email me at SinghJD1@aol.com.

The post Weekly Swing Trade Report For June 20, 2016 appeared first on Bulls on Wall Street.

In today’s video we analyze hit 4 focus list stocks, review current positions that are still good entries and analyze the market and the relationship between the big 3, SPY, IWM and QQQ. All in under 8 minutes!

Watch, learn and let us know what you think!

Every Sunday I put out a Free Weekly Swing Report. Make sure to sign up so you don’t miss it!

This swing trading service is great for those that work and can’t monitor the computer all day. We have in-depth nightly reports on the gameplan for the day/week and all stock picks that I trade will be alerted and emailed to you.

Check out the Swing Service HERE

Follow me, Paul Singh AKA “TheMarketSpeculator” on Twitter or email me at SinghJD1@aol.com.

The post Weekly Swing Trade Report For June 6, 2016 appeared first on Bulls on Wall Street.

In today’s video we analyze SPY’s run to new highs and identify 5 new sectors in play and actionable focus list stocks within those sectors.

Watch, learn and let us know what you think!

Every Sunday I put out a Free Weekly Swing Report. Make sure to sign up so you don’t miss it!

This swing trading service is great for those that work and can’t monitor the computer all day. We have in-depth nightly reports on the gameplan for the day/week and all stock picks that I trade will be alerted and emailed to you.

Check out the Swing Service HERE

Follow me, Paul Singh AKA “TheMarketSpeculator” on Twitter or email me at SinghJD1@aol.com.

The post Weekly Swing Trade Report For May 31, 2016 appeared first on Bulls on Wall Street.

NOTE: On Tuesday May 10th Kunal and I are hosting a webinar all about the hit energy sector, and we’ll answer all of your questions! Join us  here.

What are you going to learn in this swing trading video?

1. How to short explosive moves without fear.
2. A reason why 90% of traders fail and why you will not.
3. Timing entry signals for the parabolic short setup.
4. Strategy tips for part-time traders

Watch, learn and let us know what you think!

This swing trading service is great for those that work and can’t monitor the computer all day. We have in-depth nightly reports on the gameplan for the day/week and all stock picks that I trade will be alerted and emailed to you.

Check out the Swing Service HERE

Follow me, Paul Singh AKA “TheMarketSpeculator” on Twitter or email me at SinghJD1@aol.com

The post Anatomy of a Winning Swing Trade | Parabolic Short and JNUG appeared first on Bulls on Wall Street.