Swing Traders

Active trading on active stocks

Languages

Search

6.1. Close the trade when an ATR goal is reached

The Average True Range reflects the volatility. In this example the ATR of the WTI Crude Oil on a daily chart is 1,9 USD. This means that the WTI has a daily range of approx. 1,9 USD.

If the objective is 5 USD, one can stay in a position for several days or months. Should the objective be 0,9 USD, then it is possible that the trade is closed the same day.

Swing traders can use the ATR to determine quick and realistic objectives, eg. 50% of the ATR for a quick trade.

Swing trading strategy

1. About this swing trading strategy

2. Which stocks to trade?

3. Which trading signal to enter a swing trade?

3.1. The Relative Strength Index (RSI) as an entry signal

3.2. The Dynamic RSI as an entry signal

3.3. The Center of Gravity and Timing

4. Wait for the confirmation of the trade

5. Where to place the stop order

6. When to close the trade?

6.1. Close the trade when an ATR goal is reached

6.2. Close at trend reversal

6.3. The Center of Gravity Timing indicator to exit

A passion for swing trading?

Loving active trading? Eager to apply this swing trading strategy in realtime? It possible!

Download the unbeatable WHS ProStation of WH Selfinvest and trade stocks, indices and commodities in realtime for free during 2 weeks.