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Greedy Goblin

Review of: Greedy Goblin

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On 08.04.2020
Last modified:08.04.2020

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Greedy Goblin

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This could languish for months, trading sideways. Or worse, keep heading lower. What you want to see is a decline that happens relatively quickly over a period of 1 — 2 weeks.

This way, the emotions are still fresh and pent-up. Unlike the previous example, this up move is taking its own sweet time happening. Matter of fact, when examining the previous uptrend with the GREEN arrow…which uptrend are we looking at?

This previous move is not a good setup to me. It is not clearly defined. We want to see relatively crisp moves up, not to sluggish like this one, and not too sharp like the other ugly example, GLNNF.

Also, look at the decline. There are no signs of stopping. It is also not showing that symmetrical match of the uptrend.

It just keeps going down. That ill-defined, sloppy, upward movement, led to a sloppy, haphazard decline, with no clear, easy to spot turn-around point.

I hope you can see what I consider to be an ideal previous move and decline that I use to make for a perfect swing trade reversal.

We have to keep analyzing these two potential swing trade setups to build a case whether we should enter or not. Swing Trade Setups Part 2: Moving averages.

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After that initial move that lasted about a week and a half, AAPL traded sideways for the most part and then… The bottom fell out…where I have the RED arrow!

Those that bought here, I call Phase 1 buyers. The move down Red arrow , was relatively fast and quick. Many of those that sell here, are the same Phase 1 buyers that now have a loss.

Take a look at this chart of ON and see if you can see the same concepts…the same similarities. The huge move from the start of December until the end of January?

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Pretty simple concept. The key is to feel confident that can speculate that there is a reasonable chance that you know what price change will be over that time frame.

How someone goes about figuring out how to speculate what makes a good trade or not are simply endless. The ideal situation is to enter when all the signs are pointing to a reversal of what I expect to be a very short downward move within the overall uptrend.

Because of this very short-term downward move, very recent buyers now have a loss. They are experiencing pain. Then I hold and watch it rise.

Below are two graphs showing typical swing trades that I made. I am going to take these two trades and explain them step-by-step.

Here is a chart of Apple AAPL below. These two examples are what I would say are pretty darn near the typical trade setups that I look for.

They are ideal setups.

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