Swing trading is a popular methodology used by many professional Forex traders, that can produce some very nice profitable trades.
To be able to consistently make money with swing trading strategies, you first have to understand what swing trading is, and how to identify a swing from which to trade.
What is swing trading?
Swing trading is identifying potential swing highs and swing lows within a market, sometimes called major reversal levels, and entering as close to the perceived high or the low of the swing as possible, and trading all the way up or down to the next major reversal level, or swing high or low.
Swing trading differs from day trading in the length of time a trade is held for. Typically swing traders can hold their trades for up to a week, whereas day traders are generally in and out of the market the same day.
I am primarily a day trader, as i like to enter a trade, make my pips, and look for another opportunity. I don’t like to have money in the market overnight, as the longer you are in a trade the more your money is at risk. And i don’t like taking risks, and i also like to get a good nights sleep. 🙂
How to identify swings.
The chart below shows major reversal points in the market, or swings from which you can trade.
Now its really easy to identify swings on a chart after they have happened, but how do you know that a level in the market is a major reversal level, or swing, before its happened?
How can you enter long or short at a particular level, with the knowledge that there is a high probability that it will be a major swing high or low?
I am not going to go into detail here about how identify major reversal levels in the market, but it is covered in detail in my Forex training course. But another way that you can potentially get into a swing trade is to look at supply and demand areas on a chart, and buy an sell at those levels.
For more on how to identify supply and demand levels in the market please click here.
What i teach in my Forex training course will show you how to make money from swing trading by identifying major reversal levels in the market, and enable you to day trade or swing trade them for them for big profits. For more information on my Forex training course click here.
