Swing Trading Strategies In Forex Market - Simple And Easy

                                                             

                                                                 

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Forex swing is to understand and simple to implement for all and specially for new entrants. It's the easiest of all and a great way to make big gain.

Below are described four simple steps, one ought to take to make them a part of one's own overall strategies in forex market.

#1) Well Tested Support And Resistance

First, one needs to spot it and use it to spot trades. It's desirable to look for at least 3 tests of support and resistance. Tests must be carried out in different time frames to be more reliable. While 3 tests are a must, the more the better.

As soon as, you have carried out and spotted your tests of support and resistance successfully, get ready to test and execute trading signal.


#2) Stop Loss And Target

Like any other form of trading you must have a stop loss and a profit target in swing trading in forex. Stop loss should be placed behind the level of support or resistance. You should book profit as soon as your profit target is reached and must not wait for the next level.

This is because, in swing trading in forex market, profit target is small but the number of trades is more. Since, profit target is small, it may disappear quickly as soon as it appears. So, a trader in this type of trading must be very quick and smart.


#3) Confirmation And Belief

Simply hoping or guessing that your target of support or resistance will hold is not wise. Like any other strategy in forex or stock market, mere guessing or hoping never work all the time. This is a fact and all traders are well aware of it. 

One needs to confirm and believe that the levels are going to hold. Momentum oscillators can be used to measure shifts in momentum of price. 

For instance, if prices tend to move towards resistance but do not cross resistance level and turn away with price momentum on your side, you got the right opportunity to book profit in line with this shift. 

Here, one is not just guessing or hoping but observing the reality of price movement based on one's forex charts. One essential factor for success in swing trading is confirming a turn. 

Now, a question may arise about what indicators should be used to calculate momentum shifts. It may be mentioned that the Stochastic and the Relative Strength Index(RSI) are the two most commonly used excellent indicators in forex market. 


#4) Always Alert

One must keep in mind that in swing trading, the target is small, say only 2 pips at a time but the number of frequency is more. The principle is - Little drops of water make the mighty ocean.

Another major feature of swing trading is liquidity. So, one must always stick to major currencies of the world viz., USD, EURO, Pound Sterling, Jap Yen etc. 

Now, get ready to try Swing Trading in Forex Market.