Trading Method for Trading Stocks & Commodities

If there is one single trading technique which can best lead to profitable trading of stocks and commodities it would probably be the concept of using swing highs and swing lows, which is based on relatively simple chart patterns.

The swing high and swing low trading method is based on the observation if you look at a chart of any market you can easily see a down-market consists more of a series of lower swing highs and an up-market is mostly a series of higher swing lows (which swings are also known by the trading term pivot-points).

A swing-high is a high day (or price bar) with lower bars both in front and behind the high bar, thus forming a swing-high. This swing-high must also be under the prior swing-high which results in a lower swing high.

A swing-low is low day (or price bar) with higher bars both in front and behind the low bar), thus forming a swing-low. This swing-low must also be above the previous swing-low, which becomes a higher swing-low.

Buying or selling swing-lows and swing highs are used by many successful traders. This concept has been used by them for a very long time. Simply buying higher lows and selling lower highs by themselves can improve your overall trading results, especially when combined with other sound trading principles, including use of powerful drawdown minimizer logic stop-loss techniques.