Navigating Choppy Markets and Swing Trading Tactics

The episode opens with a reunion: Brian Shannon is back after being away for a while, and the team wastes no time jumping into a discussion about the “wild environment” currently gripping the market. Volatility—especially in energy—has been off the charts.

Key Points:

• • Shift in Strategy: Brian points out that with recent choppiness, he’s adjusted his approach, keeping risk lower by using “half risk units” in swing trades.
• • Quick Profit Taking: He’s handling winners more aggressively by taking partial profits sooner, helping to minimize overnight exposure.
• • Setups Still Work: Despite the madness, Brian notes that some setups are still working for more than just a day trade, offering hope for swing traders.

Technical Breakdown & Pattern Spotting

One of the big highlights of the discussion is how Brian uses technical analysis to manage trades—whether it’s riding moving averages, scanning for flags, or using Anchored VWAPs to pinpoint key levels.

Categories of Technical Approaches

1. Anchored VWAP Levels: Brian mentions using VWAP anchored to significant events—like IPO dates or major highs/lows—to frame where the crowd might be stuck or winning.
2. Moving Average Confluence: Whether discussing energy plays or individual stocks, the importance of rising (or declining) 20, 50, and 200-day moving averages is highlighted.
3. Recognizing Trend Patterns: Higher highs & higher lows? That’s a trend to ride. Breakdowns and lower lows? That could be your opportunity for a short.

Managing Risk & Trade Management

Even in wild markets, the focus is always on risk:

• • Partial Profit-Taking: Don’t be afraid to trim winners along the way.
• • Raise Stops: If a position runs, move your stop to lock in gains.
• • Define Your Risk: Know your stop before you ever press the “buy” button.