Swing Trade Strategy

Aim for the Stars and Become Rich

The strategy we’ll use for Swing Trading is very much like the Spot Trading, we’ll be searching for the exact same pattern on the daily graphs (Engulfing Candles). Although with a couple particularities:

We’ll just enter trades at important support and resistance levels, in the course of the general tendency in the daily graph. In case the tendency isn’t clear, we can enter at both sides of the range in a variety trade.

We’ll usually await a retracement of the key focus to enter the trades in the course of the tendency.

Proceed to break after support or the following small resistance is passed.

Trail every three candles or target opposition or a useful support.

This strategy will usually give you a 1 – 3 trades per week, it is essential that you simply inspect the markets daily after the NY session is over, additionally make an effort to find an agent who gives NY close graphs to you. NY close graphs will place you nearer to what professional futures dealers perspective although there is isn’t an official session for the Forex markets.

It’s possible for you to trade all of the pairs that you like, simply stay away from the large spread pairs; they’ll work also (I mean USD/ATTEMPT or EUR/NOK, or similar) but you’ll pay a higher cost for trading them.

Here we’ve a large Bearish Engulfing Candle as well as a tight range at one of the extremes. Although we might have entered a stop sell order several pips set our stop over the high of the Bearish Engulfing Candle, and bellow our bearish candle for the following session.

This really is the way the commerce unfolded:

Depending in your exit strategy you may have banked between 200 and 600 pips in three or two weeks.

This really is the way the commerce unfolded:

Next is an instance of the USD/CAD from July 2012, as you may see we have got a Huge Bearish Engulfing Candle right in the applicable Support which was busted and so became resistance and the downtrend was beginning to restart it is move.

Of course it is tough to catch the whole swing, if you had have been there to trade it, but disregard of your exit strategy, most probably you’d have really been able to pick rather several pips from this trade.