Swing Buy Alert

The Swing Buy strategy identifies buying opportunities in stocks that are in clear uptrends on the daily chart. In addition, the stock must be experiencing a minor pullback within the context of this uptrend, allowing the purchase of the stock at a discount to its recent prices. The final trigger for this alert is when the stock price breaks above its prior days high, signaling the pullback is complete and the uptrend is being reasserted. The following charts show examples of the type setup we look for as a Swing Buy opportunity.

Example 1:

Cisco Systems, CSCO, has been in a clear uptrend for several months and is experiencing a minor pullback. During this time period, TradeSeeker monitors the stock movement looking for a breakout, a point when the stock price breaks above its prior days high.

The instant CSCO traded above its prior days high, TradeSeeker generated a Swing Buy alert. The following chart shows what the stock did after the alert was generated. As you can see, the stock reasserted its uptrend and continued to higher highs.

Example 2:

This chart of PMC-Sierra, PMCS, illustrates additional examples of the Swing Buy setup in TradeSeeker. The stock had been trading in an uptrend and experiencing minor pullbacks along the way. As each pullback completed and reversed, TradeSeeker generated an alert to signify a Swing Buy opportunity. As you can see, the stock reestablished its uptrend and continued to trade higher.