Price action swing trading (past) strategy

Price Action Swing Trading (PAST) Strategy This Price Action Trading Strategy is all about small losing trades, and big, big winners. You'll learn how simple price.
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Swing traders generally trade the daily charts, and they often trade daily candlestick charts as well. Some swing traders will use short time-frame charts to choose the perfect entry or exit, and some will employ long time-frame charts i. Every trader has his or her preferred methods and strategies. Through analysis, experience, and trial and error, you can figure out which swing trading strategies work best for you.

Whether T-Line trading, Japanese candlesticks, working for or against the trends, or a mix of all of the above, there is sure to be a swing trading strategy that you find useful, exciting, and efficient.

Price action swing trading - Trading Systems - Forex Trading Forum

Swing Trading Strategies Follow the price action and use technical analysis. These techniques are standard for most all swing traders. Your analysis will help you determine which stock or ETF to trade. However, earnings reports will still be important and remember that the news does affect investor sentiment and can change the price action. Work with the trends.

Swing traders traditionally choose to follow the trends and embrace them i. Everyday I receive emails from traders interested in a medium, or long term approach with price action trading. I understand!

8 Price Action Secrets Every Trader Should Know About

Fast paced strategies: are mentally taxing, very stressful, demand a lot of your time, and can lose you a lot of your hard earned money. Most traders who contact me are thirsty for an understanding of market movements. Moving forward, I would like to share you some powerful price action tips that you can use to really improve your swing trading. One of the most important skills you need to learn as a technical trader is the ability to read the market structure and incorporate it into your analysis.

The market structure communicates the current environment which price action is operating under. Want to know if the the market trending, ranging, or maybe trending inside a much broader range? What about sideways markets, is the market consolidating? One reason understanding market structure analysis is so important, is that there are many consolidation structure patterns that can produce very explosive breakouts! These are the kind of the questions which can be answered quickly with simply. Those levels can be in the horizontal or a trend line form.

With those two levels, go onto a clean price chart and map out the major containment lines of the price action. When you mark these levels — it should have an immediate impact on the way you view the chart.


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The chart should jump out at you, providing more clarity from which the rest of your technical analysis can build onto. Notice how I only needed the two levels in order to accurately illustrate the price action situation on this chart? Now the chart has some meaning — the catalyst for some powerful analysis. Market structure levels are where the most powerful reversal trades can form.

Note the bullish rejection candles that formed right on the major market structure support.

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This communicates to us that the structure level is being respected and wants to hold via strong bullish evidence. Once you get a strong reversal signal at one of these important levels — it makes a very good candidate for going counter trend, and taking a shot at catching a massive reversal. Remember, trading is all about exploiting high probabilities.

When trading from ranging structures, the most profitable signals will form at the range structure boundaries. Above is a very nicely structured ranging market, very clean bounces from top to bottom. Some very nice price action reversal signals did form at the range boundaries that kicked off strong reversals. I know I am going to get asked about this: Yes! One important thing to note is the structure break. When market structures are broken, they can cause very violent breakouts!

Consolidation structures are not really much good to us in terms of trading opportunities — but when they develop they should be a big red flag that something is coming. Generally when price finally breaks strong consolidation structure patterns- the breakouts can be quite explosive.

How To Pick Easy Swing Trades

In this section I would like to talk about trending market structures. This can be a very high risk move, and they soon find out how unfriendly the trend becomes. It will become evident that timing is important for trend entry , in order to buy low, and sell high — you need to take advantage of counter trend retracements. The example above gives a good illustration of a bearish trending scenario.

It maximizes your chances of catching a nice reversal move.

Further down the line another reversal candle developed, after the main sell off had occurred. This is why so many traders are losing money in trending conditions, because this one simple rule is overlooked, or neglected — as you can see, there are big consequences for that. As you can see this low quality sell signal formed at the bottom of the move and was destroyed quickly by a counter trend retracement. Some of the most profitable swing trades occur when the market re-tests important technical levels on your chart. This means old resistance, new support — or, an old consolidation containment line now being used as a stepping stone for a breakout.

Notice how the trend line structure was broken, then the market returned back up to re-test the trend line structure — but, this time respected it as new resistance, whereas it was previous support. In this case, a rejection candle sell signal formed out of this event, creating a very profitable trade opportunity. In this particular scenario, the trend line structure was broken through again, and price re-tested the trend line to hold as new support.

Again, on this re-test event there was a strong looking rejection candle buy signal, generating a nice bullish follow through move. Notice how the market came back up to re-test the technical level it broke out from, and the level was respected as new resistance. In this example there was no finishing trade signal that I can see that would have triggered me into the move, but there could potentially had been something on the 4 hour chart that we could have traded at this hot spot.

Go back through your charts and see how many powerful moves they kick off — they are one of the most powerful trading opportunities presented again and again.

This is why high frequency trading is appealing on one level, because it helps traders avoid their fear of being in the market too long. If there is no risk, there is no reward, but if you really dig deep — you will see that high frequency trading systems are very risky. Generally a swing trade could last for months, or it could last 3 days — it just depends on how fast the market is moving.

Some bearish markets move so fast you can hit big targets very quickly. The most important thing you can do is give your trade the time it deserves to reach a logical target. Lets have a look at a trade example. The CAD is known to be unstable, it whipsaws a lot and can take that extra bit of discipline to trade successfully.

Now I know most people would have had a panic attack and exited the trade out of fear. If you gave into your fears, you would have been filled with regret as the market rallied back up shortly afterwards. This is how traders get angry with the market.


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This retracement would have taken a lot of discipline to hold through. Like I said, this one was an extreme example, but this kind of thing happens all the time and it scares people out of their trades. If you can get over this mental hurdle, you will start to see more success in the Forex market, because your trading will start yielding higher return on investment and make it easier to grow your account.

I help educate many traders on a daily basis — I witness the mistakes Forex traders are making everyday. This is how I get the insight to be able to write helpful tutorials like this one. Firstly, you need to keep your charts lean and clean.