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Swing Suite Trading Strategies

The TRN Swing Suite is a sophisticated technical analysis tool designed to identify market swings, trends, and potential trading opportunities. It combines multiple features including swing detection, trend analysis, support/resistance levels, and statistical analysis to provide traders with comprehensive market insights.

Trading Strategies​

Swing Trading Strategy​

Entry Rules​

  1. Bullish Setup

    • Identify a series of higher lows (HL pattern)
    • Wait for swing support level formation
    • Enter when price bounces off support with confirmation
    • Align with Trend Bars Pro
    • Use statistics table to verify average swing length matches setup

  2. Bearish Setup

    • Identify a series of lower highs (LH pattern)
    • Wait for swing resistance level formation
    • Enter when price rejects from resistance with confirmation
    • Align with Trend Bars Pro
    • Use statistics table to verify average swing length matches setup

Risk Management​

  • Stop Loss: Below/above the last swing low/high
  • Take Profit: Based on average swing length from statistics

Regular Divergence Strategy​

Bearish Setup​

  1. Identify bearish regular divergence at a high timeframe resistance or PD array
  2. Wait for a liquidity grab above resistance
    • Price should wick above resistance and close below it
    • Look for strong downward reaction
  3. Wait for TRN trend bars to turn red
  4. Entry: Open of the first bar after TRN trend bars change to red
  5. Stop Loss: 2 ticks above the wick high
  6. Target: Last swing low, HTF support level, or PD array
  7. Minimum Risk-Reward: 2R (skip if less)

Bullish Setup​

  1. Identify bullish regular divergence at a high timeframe support or PD array
  2. Wait for a liquidity grab below support
    • Price should wick below support and close above it
    • Look for strong upward reaction
  3. Wait for TRN trend bars to turn green
  4. Entry: Open of the first bar after TRN trend bars change to green
  5. Stop Loss: 2 ticks below the wick low
  6. Target: Last swing high, HTF resistance level, or PD array
  7. Minimum Risk-Reward: 2R (skip if less)

SMT Strategy (Imbalance Trading)​

This strategy focuses on trading imbalances between highly correlated assets, particularly NASDAQ futures (NQ) and S&P 500 futures (ES).

Setup Requirements​

  1. Daily timeframe
  2. NASDAQ futures make a new lower low
  3. S&P 500 futures make a higher low
  4. SMT/Divergence Suite detects bullish regular SMT divergence

Trade Execution​

  1. Entry: Next day's open
  2. Instrument: Use the stronger instrument (typically ES1!)
  3. Stop Loss: Below previous day's low
  4. Target: 3R (three times the risk)

Best Conditions​

  • Most effective in strong trending markets
  • Works with other correlated pairs:
    • BTC vs. ETH
    • GC1! vs. SI1!
    • EURUSD vs. GBPUSD

Best Practices​

  1. Confirmation

    • Wait for candlestick confirmation
    • Use multiple timeframe analysis
    • Combine with support/resistance levels

  2. Risk Management

    • Always use defined stop losses
    • Maintain minimum 2R risk-reward ratio
    • Consider position sizing based on setup quality

  3. Optimization

    • Adjust swing size based on timeframe
    • Use larger swing sizes for higher timeframes
    • Smaller swing sizes for lower timeframes

  4. Filters

    • Trade in direction of higher timeframe trend
    • Look for confluence with other technical indicators
    • Wait for TRN trend bars color change confirmation
    • Skip trades with poor risk-reward ratios

  5. Statistical Validation

    • Use swing statistics to set realistic targets
    • Validate setups with relation probabilities
    • Monitor average swing durations for timing

Advanced Features​

  1. Custom Indicators

    • Use external indicators for divergence detection
    • Combine multiple oscillators for confirmation

  2. Alert Settings

    • Set alerts for TRN trend bar color changes
    • Configure divergence alerts
    • Set SMT divergence notifications

  3. Visual Settings

    • Customize indicator colors and styles
    • Adjust label positions
    • Configure which divergences to display
Pro Tip

Combine these strategies with Price Action Suite for enhanced trade setups and confirmations.

FAQ​

Which trading strategy works best with the Swing Suite?​

The Regular Divergence Strategy tends to be most reliable, especially when combined with Trend Bars Pro for confirmation. However, the best strategy depends on your trading style and market conditions.

How should I manage risk with these strategies?​

Always maintain a minimum 2:1 reward-to-risk ratio and use the last swing high/low for stop loss placement. Position sizing should be based on the quality of setup and market conditions.

What are the best timeframes for these strategies?​

The SMT Strategy works best on Daily timeframes, while Swing Trading and Divergence strategies are effective on any timeframe. Higher timeframes (4H+) generally provide more reliable signals.

Next Steps​

Trend Bars Pro

Learn how to use trend bars to identify potential trading opportunities

Statistical Analysis

Master the statistical tools in Swing Suite for better trade decisions