Learn Swing Trading Strategies.

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My Forex Trading World
Financial Freedom
http//www.myforextradingworld.com/
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Range Trading

• When you see experts showing simplified line
  charts on TV, you may think trading should be
  easy. Buy and sell signals look obvious even if
  you dont have any trading experience. But of
  course, the real charts arent so smooth. If
  markets move up 10 points, they usually do it by
  going up 6, coming back down 3, going up 5,
  coming back down 2, then going up 4. So, what you
  see as 10 points on your TV screen is usually a
  move of 20 points, which actually means there is
  a lot more opportunity to make money.

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If you are a long term trader looking for
quarterly or yearly profits rather than daily
books, you may not be interested in swing trading
strategies. But if you want to make profits when
the markets are not trending, or if you want to
maximize your profits when they are trending, you
should learn a few swing trading strategies.
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So what is our strategy here? As a rule of thumb,
trends are not over unless they are. So our first
duty is to confirm the end of the trend. Some
traders use trend lines for this purpose
(personally Im not a fan I dont find them
reliable, especially when the beginnings of
trends are steep), some use moving averages (the
chart above has a 200 exponential moving average
in navy blue), and some use Fibonacci retracement
lines
My confirmation here was a 31.2 Fibonacci
retracement level. For a 1032-pip move, I had to
wait for a more than 322-pip downward move,
namely the break of 1.0290 to confirm the end of
the trend. In fact, the 200 EMA was at 1.0292
when the daily bar on September 3 closed below
this support, so it was a double confirmation for
the end of the trade.
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It is a really profitable setup with more than
400 pips of profit potential in every trade,
which also means you can place very loose stops
such as 200 pips for a risk-reward ratio
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Trend following is heavily favored by big
industry traders who manage billions of dollars,
but there is no reason for retail and small
institutional investors not to take advantage of
swing trading strategies. Indeed, it is essential
in order to be able to keep making money
continuously, as the example above is a very
typical one for the currency markets.
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Thank You For Watching