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Our Top 3 Swing Trading Setups: Deron Wagner
Our Top 3 Swing Trading Setups: Deron Wagner
Deron Wagner
Founder
Morpheus Trading Group
Overview of core beliefs
z Swing trading in the near to intermediate-term timeframe is the
best fit for overall strategy
z Trading with the intermediate-term trend
z Momentum-based strategies work!
An object in motion tends to stay in motion
Stocks trading near 52-week highs have the least amount of
overhead resistance
Cheap stocks are cheap for a reason
We buy high and sell higher, not buy low and sell high
Human nature is to underestimate how long a trend can last
z Main market structure is base, breakout, pullback
Trade with the dominant market trend
Momentum-based strategies work!
Momentum-based strategies work!
Momentum-based strategies work!
Buy stocks at or near 52-week highs
Buy stocks at or near 52-week highs
MTG buy setups
Our swing trading strategy establishes long positions using 3
types of entries:
− Breakout entry – Buying on strength when a stock
breaks out from a proper base of consolidation
− Pullback entry – Buying a stock that has put in a near-
term pullback (3 – 7 days) from its recent high
− Trend reversal – Buying a stock that forms a base after
breaking out to reverse above a substantial downtrend
line (only after a prolonged downtrend in the broad
market)
morpheustrading.com