If you have ever dedicated yourself to trade the stock market, or have simply observed closely the daily or hourly charts for a particular stock, you have probably realized that the price does not go straight up or down, it fluctuates in wave like kind of pattern.

These fluctuations in the price, whether it is going up or down are called swings, and they tend to repeat themselves with a certain level of similarity.

Indeed, these patterns are somewhat constant, however, fundamentals with a high impact on the market can affect and change these patterns taking the price of the stock out of the range signaled by the pattern.

However, what will happen in a case like that, is that you will maybe take a loss, but it will not matter (and it should not), because trading the stock or forex market is not about trading without ever losing, but trading with a high level of consistency, which simply means taking a lot of winning trades against a few losers.

Therefore, since the market moves the same way most of the time, this means that most of the time you can take advantage of the constant swings in the price of stocks, which will enable to enter when the price is hitting a support (if you are going long) and exit once it reaches the high of the swing.

These patterns can be identified through the use of several indicators. I particularly like to set the charts with candlesticks, and the add the Bollinger Bands plus the Stochastic Oscillator, which will tell me when the price may be bottoming.

However, as much as the use of these indicators are usually an effective way of determining when a stock is bottoming, and therefore when it might be a good time to buy, the problem is that doing that all by yourself involves following each stock for several days in order to catch the right candlestick formation.

The problem is that the stock market has several thousand companies that trade publicly, making of humanly impossible to follow all of them, so unless you have some kind of assistance.

Therefore, what I have done to solve this problem is that I have gotten a trading tool (a software) designed precisely to identify these swing trading opportunities, and based on the recommendations I get from the software, I pick what I consider to the best trades for the day.

This way I get to analyze (actually not me, the software) the whole market 5 days a week, and I get several good trading ideas almost everyday, which gives me plenty of opportunities to keep my money moving and growing steadily through small gains every 3-6 days (which is usually the number of days you will hold a position).

This software is generally very accurate, which means it usually signals trades that end up with a gain (it actually tells you when to buy and sell), so even if you are not yet familiar with indicators, you can use it safely to swing trade the stock market. Just make sure you do your math when determining the size of each trade to avoid your brokers’ commission eating up your profits.