Forex Swing Trading

By Kelly Price

If you are a novice trader one of the best ways to get on the road to Forex trading success is to learn Forex swing trading. You can learn how to do it and be trading with confidence in around a week or so and here we will look at how to do it correctly.

Before we look at a swing trading strategy, lets look at why it will always work.

The reason it works is because traders always push prices to overbought levels in an up trend and to far down in a down trend and this is greed and fear at work. Traders push prices to far in either direction and then, prices come back to more realistic levels which reflect the fundamentals.

Look at any currency pair you like, on any chart and you will see this occur. All you need to do is trade against these short term price spikes and take your profit as prices come back to normal value.

So how exactly o you swing trade?

Lets use the example of an up trend. Prices are trading up and suddenly accelerate, you then look for chart resistance and wait for prices to test it and not penetrate it. You then need to time your trading signal and for this you can use some momentum indicators. A momentum indicator simply measures the velocity of price and you want momentum to decrease and turn down as resistance is tested.

A good indicator which can do this is the stochastic, we have covered it in other articles and you can find plenty of free information on it online so check it out. You Simply wait for the stochastic lines to go into the overbought area and wait for a turn down as resistance holds and your in the trade.

You place your stop above the level of resistance which has just held and then set a target which is normally the next strong level of support and just before it tests this level, you bank your profit.

The above is a simple strategy you can have confidence in, as you know it works and you only need to use charts and one or maybe two indicators to time your trades.

If you trade into overbought and oversold levels using the above system, you could soon be making triple digit profits in just 30 minutes a day and enjoying Forex trading success.

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Forex Swing Trading – The Best Methodology For Novices For Seeking Big Gains Quickly
By Kelly Price

If you want to get started as a forex trader, forex swing trading is the perfect place to start and is one of the easiest methodologies for novices to start with. You can soon put together a system and be making big profits in just 30 minutes a day…

The reason it’s so good for novices is, it requires less patience and discipline than long term trend following, as you get plenty of action and profits and losses come quickly.

Many novice traders try forex scalping or day trading – but these short term methods of trading don’t work, as all volatility is random. Swing trading is the only short term method you should consider, as the time period is long enough to get the odds on your side.

The Aim of Forex Swing Trading

Swing trading typically catches moves that last from a couple of days to a week and is designed to swing trade into overbought and oversold levels. To swing trade you first need to understand support and resistance, then target levels where prices are becoming overbought or oversold and get ready to trade. To do this, you should also understand volatility and using the Bollinger Band to measure overbought and oversold levels is an essential tool.

Once you have spotted a potential overbought or oversold scenario, with prices coming into resistance or dipping to support, its time to look to execute your trading signal.

Confirming Trading Signals

Never buy into support or sell into resistance and hope levels hold, wait until they have so you are not predicting, you wont win if you predict, as this is really hoping or guessing.

For this you need to become familiar with momentum oscillators and there are many to choose from. We like the stochastic and the Relative Strength Index (RSI(, both are visual indicators and you can learn them in 30 minutes or less.

They will give you clues to changes of momentum and then when they do, you can use them to time your entry into the market.

Stops

Stops are easy once you are in the trend, you can simply place your stop behind the resistance or support you are trading into.

Taking Profits

With swing trading profits can disappear quickly, so you need to take them early.

Take them before the next level of resistance or support is tested. By getting out early, you avoid the problem of a counter trend which can eat into your profit.

Forex swing trading is an excellent method for novice traders and simply requires an understanding of volatility, support and resistance and momentum. This does not take long to learn furthermore, you get plenty of action and never have to sit on a big open profit and all the discipline this entails.

Swing trading is simple, fun and can be very profitable. It’s simple to understand and easy to build a robust forex swing trading system.

If you are new to forex trading consider swing trading, it’s a great way to get started in the exciting world of forex trading.

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For free 2 x trading Pdf’s, with 50 of pages of essential info on Forex Swing Trading visit our website at: http://www.learncurrencytradingonline.com.

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