Tag Archives: swing

Forex Trading Articles

Swing Trading Strategies – How You Use It

A swing trader usually has his trades open from days to weeks. Keeping a position open for that long can be quite risky, especially in forex market where the market movement is really volatile, thus you’ll need solid swing trading strategies. These strategies can be applied by all traders, but it’ll be easier if they match your trading style.

Identifying the Trend

The purpose of swing trading is entering trades in the direction of the major trend. Thus, identifying the trend is an extremely essential initial step to master for a swing trader. The sooner you can identify the trend, the higher your chance to get massive profits.

The problem is aside from identifying a trend, you have to be able to avoid whipsaw (a condition where a sharp price movement is quickly followed by sharp reversal) too. It can be misleading and looked just like the market is trending, so make sure you can avoid it. These are several common methods to discover trends:

– Making use of indicators: probably the most widely used indicators are Moving Averages and Relative Strength Index.
– Price Action Trend
– Pivot Point Trend
I recommend using 15 minutes and 4 hours charts for this.

Look Forward To Pullback

As soon as you identify the main trend, don’t rush and place your order. Wait for some kind of pullback first to get a good entry point. By waiting for a good price level before truly entering the market, you’ll enter at a great price and have much better opportunity to score winning trades.

Stop Loss Order

Every good trader implements strict risk management and stop loss is one of it. For stop loss, just use the latest swing high or swing low. Make sure you place your fund in a trusted broker that won’t ignore your stop loss.

Exit Point

The easiest way is to shoot for exactly the same quantity of the pips you are risking. Illustration: if your stop loss is twenty pips below your entry point, then just set 20 pips above your entry point as the exit point (take profit order). Needless to say, it’s possible to aim higher than the amount of pips you risk; it’s completely up to you.

This is just one example as there are a lot of swing trading strategies out there. A few of them may need you to learn more advanced strategies or making use of more sophisticated software; nonetheless, if you’re still learning, it is advisable to stick to one currency pair and get used to it. Also, know the best time to trade for that specific currency pair.

There are hundreds of strategies variation for swing trading, but the fundamental is the same: finding a trend and ride on it to get as much profit as you can. Just like that. People just discover a lot of different way to do that, so just go with one that suits you the best.

Forex Trading Articles

Swing Trading System – 3 Tips to Get A Profitable Strategies

Swing trader is a very popular style used by independent Forex traders as well as banks and financial institutions. If you are a Forex trader, you should take into consideration swing trading strategies. This kind of trading doesn’t require you to stay awake 24 hours a day to monitor your trades.

Swing trading and the Forex market

As you may know, Forex market is very rewarding if you trade it correctly. To simplify swing trading, it’s buying a currency pair at low levels to sell it in the future at higher prices. In the Forex market, the existing pairing of currencies enables the trade. This means that any currency strength or weakness is relative to the other pair. Swing trading strategies involve long term trading, which means that you need to be very patient. You will find very useful tips below that would help you with your swing trading strategy.

Use both technical and fundamental analysis

In any case, swing traders rely heavily on two strategies, which are fundamental and technical analysis. Of course, you can rely on just one of those, but most traders use both since you have the time to analyze both while you are waiting or in a trade. Technical analysis is most used since it is more advanced but it is often used along with the fundamental analysis.

Use swing trading patterns

Any trading strategy relies heavily on chart patterns. If you are swing trading, you will use reversal patterns that give you entry and close price. Continuation patterns will indicate that you should keep on holding your trade. Get to know market patterns as they can pay you back with huge returns, that is why banks and institutions spend a lot of money on market pattern research.

Price curves

Always keep an eye on price curves as they are the most important indicator of trend changes. It can be as simple as buying low and selling high. This does not require any professionalism; if anything, you only need common sense. You just need to buy a currency when the prices are moving up and sell when they are higher. Some very good traders only take one trade per year. Always remember that making profits is not only about buying and selling on the same day It is easy to make money if you follow a strict swing trading strategy. Forex is easy if you simplify it.

In conclusion

You have to go in the Forex market open minded and ready to learn. Without a swing trading strategy, you will struggle in this market for no reason. You might not be having a lot of money to start trading, but the choices you make will determine whether you will join the successful traders or be another failure in this volatile market. Swing trading strategies are very simple and requires a lot of learning but you have to be patient in order to succeed.

Swing trading is the thin line that exists between success and failure in the Forex market. This is a brief look at what swing trading is all about and how it can benefit you as a trader.

Forex Trading Articles

Keys of Forex Swing Trading

Swing trading is an easy to learn and implement method for the new Forex traders, as it provides opportunities to earn big.

The object behind swing trading is to watch and grab the responses of the Forex trends that lasts for long.

It has abundance of trade opportunity to trade and it gives instant idea about the correctness of your decision. It is an easy method from the traders’ psychological end, because the traders have stop levels, bit losses and returns earned instantly.

The success of swing trading depends on the ability to spot valid support and resistance levels on the Forex charts. The tactful implementation of the price momentum indicators in order to transact indicators in sequence with moves in price momentum helps to get successful swing trading.

The swing traders always trade with the confirmation of the price momentum signals to twist up away from the support and resistance areas and execute the trading according to the signals.

Merits: It is easy to learn, fun to trade, it holds lots of trading opportunity, profitable and psychologically easy.
Always keep in mind that you do not just trade with hope or guess and it’s good practice to use price action.

Thus, four keys to be successful in Forex swing trading are spot support and resistance areas, analyze the price momentum, signal selection and stop reverse on breakouts to take quick profits.

This trading style applies the formula of hit and run while making positions in the Forex trade.

In this trader should take the profits soon that means before the testing of next support and resistance levels.

Market Analysis

Swing Trading The Stock Market

You are just kidding yourself if you think you can day trade the markets without some experience. The big traders know this and will take out your stops most of the time. This is why it is better to learn how to swing trade in a more stable market. The stock trader is going to fail if they think it is easy to be profitable through day trading the different markets. Smart brokers and market makers can and will run your stops and take your money. This can happen during a news release when a spike in the price happens up or down.

This is a mistake most new traders make trying for the quick buck. It is better to look at intraday trading even though it takes more time you need to be patient and let the trades developed.Traders need to understand that swing and position trades can offer far less risk, and less emotional stress then daytrading. This allows the stock trades more time to be in a profit.Let the market makers do their thing and watch for the support levels where they are stacked up. Technical analysis will help you to achieve better trading positions especially in swing trading.

Stock traders need to allow time for their trades to work and when you are in profit, you can afford to let it run to resistance and hit the sell button. Traders need to turn their stock trading into the most intelligent, easy money the trader could ever make, set those stop losses and make some money by intraday stock trading.

How to Swing Trade

General Forex

Swing Trading – An Overlooked Powerful Strategy

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Despite a lot of new trading strategies that have been invented in the forex trading world, swing trading is still have many users that implement it on regular basis to gain steady winning trades day after day; but apparently, this strategy is less popular among novice traders who aim for quick profits.

By definition, swing trading is buying or selling currencies near the end of an up or down price swing that caused by price volatility for a period. This position can last for a couple of days or just one day; depend on the market movement and the targeted profits.

With this method, there are a few important things to consider:
1. Support and Resistance
Don’t depend just on one chart to decide support and resistance level, instead, check a few different charts to make sure that you’ve had it right.

2. Using the Data
Even between swing traders, there are many methods used to define entry and exit point; these are some of them:

  • Wait for the currency to turn away from support or resistance, define it as price momentum, and execute the trade.
  • Identify a certain pivot point in the chart, mark it as “pivot line”, then if the price manage to break the line, execute buy/sell based on whether it is an uptrend or downtrend.
  • Using Fibonacci extension tool or just look for nearby pivot point to look exit point from the market.

3. Indicators and their Functions

  • Stochastic and RSI (Relative Strength Index) to identify momentum.
  • Fibonacci, pivot points, and fractal measurements to identify entry point.
  • MACD (Moving Average Converge Divergence) as additional tool for confirmation.


4. Taking Profit
How much profit to aim should be adjusted with the current market condition. If the market is trending or volatile, you need to get in, grab as much as you can get (within safe period), and get out quickly. This is important since as the market keeps moving, there is high chance that you’ll get a reversal.

On the other hand, if you’re executing your trade when the market is not really going anywhere, you can aim for longer term swing trade, such as 3-4 days. With this strategy, you can expect higher profit; just remember to put your stop loss and take profit accordingly.

Many novice traders choose short term strategies because they want easy and fast profits, but here’s the hard fact: it is really difficult to make numerous small trades and keep maintain good winning rate. Instead, if you’re just started trading forex, you should go with swing trading since it offer simple analysis and relatively safe way to earn steady profits.