Swing Trader: A Complete Strategic Guide That Works (part 1)
There are some times wherein the market seems to move lower upon hitting the purchase/buy button. Sometimes you’ll wish that your trade may be over sooner as you hate to see the P&L swings high then down.
Well, there are ways to counterattack such events, all you need to do is a continue reading this experience trading education, wherein you’ll read about the strategy guide on swing trading that works.
In this post, we’ll share with you everything that there is need to know about swing trading. You’ll also read about the three trading strategies.
The Swing Trading
Swing trading is a trading method in which traders watch out and wait for a certain swing or one move within the market. The method aims to endure such little pain as possible in order to exit trades ahead of possible opposing pressures coming in. In other words, swing trading is done to book profits ahead of the market reverse in which could wipe out all your gains.
The advantage of swing trading
In an experienced trader’s stand, there are about three advantages swing trading could give you. One, you’ll not to spend hours in front of a monitor because your trades might only last for days or weeks. Two, it suits for those who do trading as a part-time. Three, it will be less stressful than day trading.
The Disadvantages of swing trading
To be totally honest, we’d also list down the two disadvantages of swing trading. One, you are now unable to ride trends. Two, you’ll have an overnight risk.
However now, think about the advantage of what you’ll learn in this post. If you want to do better, continue reading as we slowly enter critical points to understand about swing trading.
Now if you’re ready, we’ll start by sharing about the three trading strategies we’ve told you on the first parts of this post.
Support and Resistance box
A swing trading within a range market as the market is currently in between the support and resistance. There are five pointers that you’ll need to do to make this work. One, indicate a range market. Two, wait on the price breaking out below the support. Three, upon price break below support, wait for a strong price refusal which will close above the support. Four, when there comes a strong price refusal, go long on the next opening candle. Five, set a stop loss one ATR below the low of the candle, then take profits ahead resistance. Look at the sample chart below to understand further.
Now, why should you take profit ahead of the resistance? If we are to remember on the first part of this post, you’ll only need to watch out for a “one move” within the market. Ensuring the effectiveness of the strategy, you should exit trades ahead of the selling pressures.
Surfing the wave
Swing strategy focuses on catching “one move” within a trending market. However, it might not happen in all types of trends. Now what you need to do is to trade deeper to have a deeper pullback as there is more “meat” on the upside.
Now there are four pointers you need to do in order to pull this off with a win. One, indicate a trend in which respects the 50MA. Two, whenever the market approach the moving average, wait for a bullish price rejection. Three, whenever there’s a bullish price refusal, go long on the next candle. Four, set a stop loss 1 ATR below the low then take profit ahead of the swing high. Look at the sample chart below to understand further.
Wanting to have an edge in swing trading, look for the “one move” within the market. Ensuring the effectiveness of the second strategy.
Fading the move
This last strategy, you’ll need to go against the trading momentum. Elsewhere, if you’re a trader with a taste for the idea of going against the majority, this strategy best suits you. There are four points that you’ll need to do in making this strategy work. One, indicate a strong momentum going for a resistance in which holds a capability to take out the previous high. Two, look for strong price refusal while the candle forms a strong bearish close. Three, go short on the preceding candle then set your stop loss 1 ATR above the highs. Four, take profit ahead of the nearing swing low. Look at the sample chart below to understand further.
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