Forex Swing Trading Strategy
Some of you may have heard of forex swing trading from some forex books or courses that you have attended. I personally love to trade swing as it usually is more predictable and it also tends to happen on certain time of the day.
So What Is Forex Swing Trading?
Swing trading is the U turn of a trade at a certain point of time. It is not to be confused with reversal trading as swing trading is only for a short period time while reversal trading is for a change in trend.
Here are some pictures of swing trading:
Basically this is how you can trade forex swing.
Step 1: Look for either London Open, London Close, New York Open or New York Close depending on the availabiliy of your time. Typically, these are the time where the swing is likely to happen and if you manage to capture the time right, you will see the profit.
Step 2: Setup your indicator to look for swing. You need an oscillating indicator like the RSI or stochastic to help you identify a swing. You can also add in the PSAR to help you time the entry. I usually make use of oversold or overbought to help me time my entry. The PSAR is also one good tool to do that.
Step 3: Setup the major support and resistance like the Fibonacci level or the Pivot point for the day to help time your exit. Usually I exit my swing trade at a fibonacci level or pivot point.
Step 4: Always wait for a proper trend line break before you enter a trade.
Hope that you can make use of this forex strategies to help you in your trade. In case you are interested to find out more about this strategy, this is one good place to learn this strategy. Click here for more information
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