The Steps In Swing Trading
Hello traders,
Are you like to swing in forex trading? If you ever try to do
swing in forex. You can have a practice on that. The trend is
easy to understand and easy to predict rather than scalping.
My recommendation on time frame to swing is Weekly, Daily and 4 hour chart.
Here you can have the step to swing trading.
Step 1 : IDENTIFY TREND
You have to identify what is the trend on the market that you are going into.
Remember, the trend is you friend. If you see uptrend, only look for buy, if you see
downtrend, only look for sell.
Step 2 : WAIT FOR PRICE MAKE RETRACEMENT
This is important if you want to lower the risk of your stop loss. So that
you buy at the bottom and you sell at the top.
Step 3 : FIND THE CRITICAL LEVEL
Find the zone at the support and resistance level where few of the price make
market reversal on the critical level.
Step 4 : SET TARGET PROFITS
Set you target profits to the nearest support and resistance zone.
Step 5 : SET STOP LOSS
Stop loss can be 10 pip below low of the privious candle for buy order. While 10pips from
top of previos candle for Sell order.
Step 6 : SET BREAK EVEN
Set break even when the profits run. To do this you can modify the stop loss to
1pips greater or lower than the entry order.By doing this you eliminate the risk of
price hitting your stop loss.
Step 7 : TAKE PROFITS
Take half of the profits when the price reach 40pips to 50pips. Let the price go and hitting
the target profits.
Keep practicing, you will have it.
I wish you good luck in your trading.
