This article shows optimal buy signals for swing trading and position trading. The basic pattern forms the foundation of all trading entries you make. You can use this pattern on day trading setups as well.

The below figure illustrates three key buy signals. Read them like this: 1. Number 1 is the breakout over base resistance. 2. Number 2 is the breakout after the stock pulls back to support and resumes its uptrend. 3. Number 3 is best used as an add-to-position point. It takes place when the price rises over the previous high's pivot \(resistance) pri­ce.

Whether you want to learn the basics of stock and currency market, develop your trading skills and find working approach to identifying correct trading signals, whether you are already familiar with FOREX trading and want to deepen your knowledge of market and develop professional skills, or whether you are in a search of working trading system, this collection of articles will help you on your way to the big success.

Find out the underlying causes of stock market movements:

Day Trading — What It Is and What It's Not

The Three Phases of the Trading Day

Is it Possible to Earn Money With Day Trading?

Learn to identify the most important chart formations:

Identifying a Congestion

Identifying a Trend

Breakout Patterns

Find answers to the most debatable questions about FOREX trading:

Where and How to Place Stops

Basic buy signals – What to look for?

Learn to identify and trade using one of the most amazing patterns ever:

What Causes a Ross Hook?

Identifying Ross Hooks Patterns

Identifying a Ross Hook Validity Based on Trend Analysis