A low swing is when a stock reaches a level where it’s trading below the $10 point the previous period, and the price of some other stock that is currently higher falls back below the same level. Thus, the low swing usually happens after a stock hits a major bullish reversal, as it tends to signal where that stock will start going after the correction.
Here are some examples of a swing low in trading.
In February 2016, an Apple (AAPL) low swing low was reached for the first time at $1.08 before falling to $1.05 the next day. During the next week the swing low was reduced to $1.01 in a major correction. The stock has since recovered on the low swing to $1.06, with some upside potential.
In May 2015, an Apple (AAPL) low swing low was reached, and later fell to $.98. The stock has since been trading with the low swing low at $.99, and it has now recovered some of the low-point of 2014.
After a major bullish reversal with Apple, a low swing low was hit in October 2016 and subsequently declined. The stock later recovered with a low swing low of $.96 in a major correction.
After a major bearish reversal with Apple, a low swing low was reached in September 2016 and subsequently declined. The stock then recovered on a low swing low of $.94, and has since rallied again.
In April 2016, a low swing low was triggered on a major bearish reversal, leading to one hour high of $.97, the lowest swing low and best low of the trading day. The stock then fell to $1.05 after that as the stock started trending lower, and has since recovered.
If you’re trading low swings, and looking to make profit, here are two ways you can help.
Get tips from traders who are going on low swing lows.
Buy options for Apple, and hold them after low swings.
For Apple, the low swing lows are the lowest possible points that the stock can break below $.50. There are a limited amount of selling opportunities in the low swing low range, but buy-and-hold strategies have historically proven the most efficient way to profit after a low swing low.
If you’re looking for more ways to profit off high-risk stocks, check out our high-risk stocks guide.
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