Alan Farley's rules for a swing trader

A lan Farley had famously declared that the 200-day moving average divides the investing world in two. Bulls and greed live above the 200-day, while bears and fear live below.

Sellers eat up rallies below this line and buyers come to the rescue above it. Known as master Swing trader Alan has widely written about his swing-trading techniques and has given some rules. Out of that 15 rules are presented here –

Rule 1: if you have to look, it isn’t there. Forget your college degree and trust your instincts. The best trades jump out of nowhere and create a sense of urgency. Take a deep breath, then act quickly before the opportunity disappears.

Rule 2: Trends depend on their time frame. Make sure your trade fits the clock. Price movement aligns to specific time cycles. Success depends on trading the right ones.

Rule 3: Price has memory. What happened the last time a stock hit a certain level? Chances are it will happen again. Watch trades closely when price returns to a battleground. The prior action can predict the future.