High Probability Swing Trading Strategies

moving average

Because of the nature of swing trading for looking at swing highs and swing lows, it is more than possible for swing traders to find them during the day. Those of you trading the markets amid this Coronavirus pandemic know how serious overnight risk is right now, on both the long and short side. A swing trader is basically powerless to mitigating the effects of overnight risk, at least in individual stocks. Day traders can swiftly flatten their position at any time. Swing trading is generally defined as a short-term trade lasting longer than one day and less than a month.


Look for the 38.2% and 61.8% Fib https://topforexnews.org/s as potential retracement levels for the price. The reason why we take profit here is quite easy to understand. We want to book the profits at the early sign the market is ready to roll over. And then on both sides of these simple moving averages are plotted two other moving averages at a distance of 2 standard deviations away from the central moving average. The last three closes of the VIX have been at least 5% over the 10-day moving average. Enter when the market is above its 200-day moving average and performs a new 7 day low.

Which financial instruments are the best for swing trading?

Assets such as oil and gold tend to trend strongly during certain periods, and swing traders can take advantage of these opportunities to earn huge profits. In terms of day trading specifically, you’ll need to familiarize yourself with proper technical analysis techniques. You should know which technical indicator setup works best under specific timeframes.

This simple swing analysis can be used together with Price Action patterns and support and resistance zones for more comprehensive and profitable trading. Swing trading refers to the medium-term trading style that is used by forex traders who try to profit from price swings. By following the advice above, you’ll be well on your way to earning quick and easy profits in the stock market.

These levels perfectly illustrate how supply and demand forces play out in the market to determine the price of financial assets. Exposure To Overnight And Weekend Price ‘Surprises’ – Swing trades are typically held overnight or over the weekend. This exposes traders to risks, such as price gaps or impactful news and events that may happen during after-hours or weekends.


Stops will then be placed just above the resistance area, with profit targets near the support area. It’ll ease your swing strategy by offering you the best tools for trading. Apart from the fast market execution times, you get to enjoy an array of technical indicators to help you make all the analyses. With this article, you’re on your way to becoming an excellent swing trader. All that remains now is for you to pick a CFD broker that’ll give you not only all the instruments to use with your swing strategies but the fast market executions.

Get Started With Our Simple Swing Trading Strategy

Bcoz you hold humanity but where as western world trying to make money from every thing by selling what they know. You’ll wait for the candle to close first before placing a trade. Thank you Rayner for your uncountable number of very educational posts.

  • Sometimes, though, a stock’s price goes stagnant – and never ends up triggering one of your orders.
  • Instead of entering when the RSI goes below 10, wait for it to start going up again.
  • During this period, geopolitical developments and high-impact economic news could significantly impact the asset’s price.
  • The swing trading strategy requires patience and calmness because there will be numerous intraday price fluctuations as the trade plays out.
  • In most cases, they simply set their profit and stop loss targets and only monitor them occasionally.

https://forex-trend.net/ and resistance lines represent the cornerstone of technical analysis and you can build a successful stock swing trading strategy around them. Before we go on to showing you how you could trade mean reversion in a swing trading strategy, let’s have a look at the other major category of swing trading strategies. Basically, swing trading is a style that attempts to forecast an impending price move in the market and aims to capture huge chunks of profits if that move happens. Swing traders implement a variety of strategies in the market.

Forex Swing Trading

Their trades never remain open overnight, and, in most cases, trades will last only a few minutes or seconds. And if the first strategy wasn’t exactly your cup of tea, you could give a try to this other strategy. The “Catch the Wave” swing strategy focuses on catching parts or “swings” in a trending market, like a surfer on a beach waiting to catch the wave. The trader can set the Stop-Loss below the latest rejection candle and place a Profit Target or a Take-Profit order at the resistance of the range. It is important to remember that every trading style has its pros and cons, and it is up to you the trader, which one you will choose. Since trades usually have larger targets, spreads won’t have as much of an impact on your overall profits.

Our team at Trading Strategy Guides has already written about other swing trading strategies that work. Read the Harmonic Pattern Trading Strategy – Easy Step By Step Guide or the MACD Trend Following Strategy- Simple to Learn Trading Strategy. These are some of the most popular strategies ever posted at Trading Strategy Guides. Earning calendars will help you factor in sudden price movements to your swing trading strategies.

I follow yours https://en.forexbrokerslist.site/ rules and make some adjustment break event stop and trailing stop. It work very good to me and see my account blooming makes me confident to use this strategy for all my trade.. Of couse i cant win all trade, but when i loss i loss only 1R and when im in profit i can take as much as 3R max..


Stocks usually have psychological price areas that are actively targeted by investors. Traders can ride a trend when the price is moving in a particular direction, and later take opposite trades when there is a reversal in the market. Events such as earnings reports and other company news also provide lucrative swing trading opportunities for investors. And join the many swing traders that are profitable, good luck with your swing trading strategies. After reading this guide you will become learn exactly how to identify swing trading opportunities with great accuracy with this simple swing trading strategy.

What is confluence and how it impacts your trading

However, when taking a trade, you should still consider if the profit potential is likely to outweigh the risk. You now know that conditions are favorable for a trade, as well as where the entry point and stop loss will go. Some traders like to buy on new highs after the price has ranged or pulled back. In this case, a trade trigger could be when the price rallies above the $122 resistance area in August. If your reason for trading is present, you still need a precise event that tells you now is the time to trade.

Channel trading

And of course, SELL trade opportunities look exactly the same only from the opposite direction. You can’t spend a couple of hours every day analyzing the markets. You are willing to take fewer trades but more careful to make sure your trades are very good setups.

Lower Time Commitment – Compared to day trading, swing trading demands a reduced time commitment. Because they primarily utilise technical analysis, swing traders are only required to watch their charts on daily or 4-hour timeframes. They do not need to watch their charts all day or monitor price action on smaller chart timeframes. Swing trading is, therefore, very accommodative even for traders who have daytime job commitments. The last benefit of using a simple swing trading strategy is that you won’t need to be glued to the screen for the whole day like with day trading strategies. A swing trading plan will work in all markets starting from stocks, commodities, Forex currencies, and much more.

I have been trading stocks for five years, many up and downs, looking what can works, and realize it all comes down to the 7 points u mentioned. If you’re doing any of the above, then it will be difficult to identify high probability trading setups. Now, may I ask your opinion about the trading idea that I’m developing, specifically on Trailing Stop Loss technique.