Trend Following Swing Strategy

The Trend Following Swing Strategy focuses on capturing short-term trading opportunities within strong long-term trends.

The core principle is simple:

Trade only in stocks that are already showing strong momentum

Instead of trading every signal in the market, this approach filters high-quality trending stocks first, and then executes swing trades within them.

Strategy Logic

When a stock breaks out on a long-term chart (All-Time High / Multi-Year Breakout), it enters a phase of:

• Strong upside momentum
• Sustained trend
• Institutional participation

This trend often continues until the momentum weakens or breaks.

Short-term buy signals have a higher probability of success when they occur in stocks that are already in a strong uptrend.

Multi-Timeframe Approach

This strategy is built on a two-step process:

1. Higher Timeframe (Stock Selection)

We first identify strong momentum stocks using:

• Point & Figure Chart
• Box Size: 1%
• Reversal Size: 3
• Timeframe: Daily
• Bullish Turtle Breakout

What is a Bullish Turtle Breakout?

A Bullish Turtle Breakout occurs when the current column of Xs exceeds the highest X formed in the previous five columns.

This indicates that:

• Demand is overpowering supply

Summary:

Trend first, trade second

This strategy is not about trading more it is about trading better.

By combining:

• Higher timeframe trend identification
• Lower timeframe execution precision

Aim is to:

Align with momentum.
Improve trade quality.
Build consistency over time.