How to Swing Trade Late Day Strength Off An Intraday Reversal

As a swing trader it is important to understand that strength often begets more strength.  This is the central principle of the hammer setup.  We look for strength at the end that reverses what looked to be a down move earlier in the day.

$SPY is a good example of this setup.  Trade Report members were alerted to this setup as I made the trade before the market close.  Like clockwork the market gapped up today and the position was sold for a quick profit.

It is tough for some to enter a position when a significant move has already been made.  However, this is a high probability setup and one must forget about what has already happened and look to the high probability of what will happen.

If you would like to learn more about how I trade, receive my nightly focus list with market analysis, setups and trade alerts, sign up for a 7 day free trial at BullsonWallStreet.com. If you like this article, follow me on twitter

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s

Blog at WordPress.com.

Up ↑

%d bloggers like this: