The Greek Stock Market is often suitable for swing trading systems that focus on profiting during a week. The liquidity of the Athens Stock Exchange isn’t big enough for day trading and that is why I bought HTO shares yesterday at 6.19 in order to trade out a couple of days later. It turns out I have picked a stock that is up 6% today and closing the resistance level found at the daily stock graph. Should the HTO stock price break above that level, I wouldn’t be surprised to see a drift up to 8.00 for some huge profits. However I don’t expect to hold the stock for that long time, as I will meet quite a few worrying technical analysis’ patterns in the 60-min graph the following days, if not today.
A swing trading system deals with entering and exiting right on key points mainly inside an already established trend. It is not that often to swing trade when you expect a trend reversal. Yesterday HTO stock overcame the resistance level found in the 60-min graph, which was also the 3-month high. The continuous higher lows also indicated the HTO stock price was ready to reach new highs. That is why I immediately bought 2.000 shares at 6.19 setting a stop loss at 5.95. Initially I thought of a stop loss at 6.05, but given the fact the Greek stock market behaves a bit erratically, I opted for a less tight stop loss.
Today the HTO stock opened with a gap and formed a great green candlestick in the 60-min graph while it also broke the resistance level at 6.60! Since there isn’t a worrying candlestick formation at this point I’m holding the position until the stock prints a lower price than the previous candlestick’s low in the 60-min graph. Maybe the best entry point regarding a perfect swing trading system would have been at the breakout of 6.00 on 8th of November but I kind of neglected that signal. I should finally note that the HTO stock is trading downwards in the monthly chart, but it has obviously entered an upswing even at that timeframe.