One of the primary technical set-ups we use for our swing trade signals is what we call the inside bar.  We use a daily chart for this tactical entry.  It is a three bar set-up that tries to capture a consolidating market that breaks out.

Click the video below to see how we applied this methodology to our entry into a vertical call spread in Twitter (Ticker:  TWTR)

Follow me on Twitter @MikeShorrCBOT

about the author:

Mike Shorr

Since 1994, Michael has been an on-the-floor market maker, Vice-President of Interest Rate Derivatives for Knight Financial Products and Director of Education and Options Instructor at Trading Advantage. He makes the oftentimes complex world of options and trading accessible to the novice and advanced trader alike. Michael has a Bachelor of Science degree in Statistics and Finance from the University of Illinois Champaign-Urbana. He presently is Director, Trader Education at ProsperTradingAcademy.

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