Successful swing trading strategies

Five swing trading strategies for stocks. 1 – Fibonacci retracement. 2 – Support and resistance triggers. 3 – Channel trading. 4 – and day SMA. 5 – MACD crossover.
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Generally, the middle line is the day moving average, whereas the lower and upper bands are at 2 standard deviations from the middle line. When the underlying quote moves to the outside of the upper Bollinger band, it is considered to be "overbought", which can signal a time for taking profits and liquidating.

This signals prices that could cover losses. When the underlying quote moves up from the bottom band, then the middle band is the first line of resistance as continued trading above the middle line would normally lead the quote towards the upper line.

Trading Styles vs. Strategies

If a quote moves down from the upper line, the first support would then be the middle line; if it fails to hold at the middle band, then the lower band would be the next level to pay attention to. If you'd like to take an even deeper dive into swing trading, along with learning a versatile strategy that even beginners can use, check out our recent webinar on the topic! There are several things you can try to improve your swing trading strategies.

The first is to try to match the trade with the long-term trend. Although in the examples above we were looking at an hourly chart, it can help to also look at a longer term chart - to get a feel for the long-term trend. Try and trade only when your direction matches what you see as the long-term trend. Another way to improve your swing trading strategy is to use a secondary technical indicator to confirm your thinking. For example: if you are a counter-trender, and are thinking of selling, check the RSI Relative Strength Index and see if it signals the market as being overbought.

A Moving Average MA is another helpful indicator you could use to help your swing trading. A MA smooths out prices to give a clearer view of the trend. And because a MA incorporates older price data, it's an easy way to compare how the current prices compare to older prices. Data range: September 3, , to August 27, The method we are using to identify market movement utilises both moving averages. Together with this indicator as our input signal, we will use the basic stop loss and take profit.

When the red line crosses the green line, it suggests that we can see a price change in the direction of the crossing. In the graph above, the shorter red MA crosses the longer green MA on three occasions. This is providing a signal to buy. It is important to bear in mind that, with this method, due to the nature of the MA, the trend will start before we receive our signal.

There can always be unexpected price changes. Therefore, we must always adopt good risk management. Let's look at this with an example. Data range: June 14, , to June 29, After observing the crossing of ascending MAs we could have entered a purchase order. If we do not set our objectives correctly, with a take profit and stop loss order, a later fall can occur that causes us to lose a large part of our capital.

If we had maintained a long position, we would have been trapped for a long time in a very bad trade. There was a fall of several hundred pips in less than a minute. In these circumstances, good risk management is essential. If your position is the right size compared to your capital, you can weather the storm. Below we explain how. Something you might have heard about trading Forex is that the majority of traders lose money.


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However, it is worth noting that this is also true for successful traders. This is where risk management and money management are so important. In trading, but especially Forex, you have to know how to lose before knowing how to win.

What is a swing trading indicator?

And when we talk about knowing how to lose, you should know how to lose little to win big. Put simply, if you can manage your risk by closing out losing trades early, this will help ensure your profits are bigger than your losses. As you have now understood, swing trading is a medium and long-term trading strategy. It is a strategy very dependent on the management of risk and its capital, commonly called money management swing trading. Before taking any position, you should have these numbers at the front of your mind.

Your stop-loss and neutralisation positions will be determined by your predetermined limits. And from there, perform as many actions as you can without exceeding your risk limits. That limit will then influence your actions - you will close a position because it is approaching your loss limit, or when the asset goes up and reaches the target profit.

Or, if a trade passes the breakeven point, at which point it becomes a 'neutral' trade, you can take on a new position, without risking your risk limit. There are many tools and indicators you can use to improve your chances of success when performing these swing trading strategies. So where can you access all these swing trading indicators and tools? If you have a demo or a live account with Admirals, the good news is that you can access these absolutely free with MetaTrader Supreme Edition! These include an indicator package with 16 new indicators, technical analysis and trading ideas provided by Trading Central, and mini charts and mini terminals to make your trading even more efficient.

Now that you know the basics of swing trading, and some good Forex swing trading strategies, here are our top tips to help you succeed as a swing trader.

3 Top Swing Trading Strategies With Examples & Key Indicators

Before you can start trading, you need to choose a broker. A Forex broker will give you access to the markets you want to trade, along with a trading platform to carry out your trades. However, some brokers are better than others, so it's important to keep the following in mind when making your choice:. Because this article has this comprehensive list, you won't need to go searching for the best swing trading strategy books.

However, if you are curious about finding more information about trading, you can consider the following books:. For those readers from India, why not have a look at the following article on the best swing trading strategy in Hindi:.

Forex Swing Trading: The Ultimate 2021 Guide + PDF Cheat Sheet

Swing trading is a style suited to volatile markets, and it offers frequent trading opportunities. While you will need to invest a fair amount of time into monitoring the market with swing trading, the requirements are not as burdensome as trading styles with shorter time frames. Moreover, even if you prefer intraday trading or scalping, swing trading strategies will provide you with some diversification in your results as well as offering potential additional profits! Having said that, swing trading is not right for all traders, so it's best to practice with it risk-free first, on a demo trading account.

Sign up for a demo account with Admirals, and start testing your swing trading strategies on the markets risk-free. Click the banner below to open your FREE demo account today:. Admirals is a multi-award winning, globally regulated Forex and CFD broker, offering trading on over 8, financial instruments via the world's most popular trading platforms: MetaTrader 4 and MetaTrader 5. Start trading today! We use cookies to give you the best possible experience on our website. By continuing to browse this site, you give consent for cookies to be used. To do this, use the percentage scale instead of the numbers.

We recommend this to be done at 10 AM or during the premarket. After listing these ETFs, find the best and worst performing and shift your focus towards this.


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    6. Now you have 4 ETFs which you will trade with during that day. After identifying the 2 strong and the 2 weak ETFs, you should go ahead and go long in the former 2 while shorting the latter. As seen in the chart, the ETF has just touched a new low and then rallied back to a descending trendline. In this case, if the target is way much below the previous swing low, you should avoid the trade. If the target is above the swing low, you should expand the target at least 2 or 3 times the risk. Many traders are now appreciating the need and simplicity of trading using ETF.

    These funds play a very critical role in ensuring that traders avoid liquidity risk. They also ensure maximum diversification for the trader.


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      6. However, it does not remove the entire trading risk in the trades. In fact, many people have lost significant resources by investing in risky ETFs. Therefore, it is important to conduct some research when selecting the ETF vehicle to use. With over k subscribers in less than a year, TraderTV.

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