Hello, Could you please recommend a book on swing trading and sector rotation . I looked on YouTube but most videos look like they are done by kids for kids. There are so many books on amazon on that topic but it is hard to tell who is an actually trader and who is just a writer. Thank you .
I have never seen anything in a book that really breaks this down. If you can understand this recent example your good to go. The indexes were unable to find a bottom the Biotech sector had formed a base - this is relative strength. When the indexes rallied the biotech sector lead the charge up. Using relative strength for longs & relative weakness for shorts will get you into the right symbols more often than not with some practice.
You have to have access to flow data to make correct judgments about rotations. What you can find online, like some charts about flows or COT is lagging data and most of the time useless since when you see it markets are in the process of digesting new important information.
%% IF you like charts; Alan Farley ,Master Swing Trader book . Charts help in that book, i seldom pay any attention to his double jointed words there. He got many of his ideas from IBD+ those books+ sectors by William O Neil.
By Alan Farley Updated February 08, 2022 https://www.investopedia.com/articl...-simple-effective-exit-trading-strategies.asp
This is so key and 'more often than not' is enough to be really profitable. Its all a probability game and once an edge is repeated over and over it will be profitable (with the correct management)