RSI – Trading POC

Currency Swing Trading For Success

Posted on October 2, 2019 by blogger

If you are new to forex trading the best way to get started is swing trading – its simple to learn requires very little discipline and can soon be making you huge profits. Let’s look at currency swing trading in more detail.

The Objective

Is to capture moves which will typically last between a couple of days and around a week and will trade short term moves within support and resistance levels – normally from overbought or oversold levels.

Why It Does Not Require Much Discipline

Most traders fail because of lack of discipline. They can’t run big profits and trend follow because it takes tremendous patience to wait for the right opportunities and great willpower to hold long term trends if open equity dips.

In forex swing trading, you get a lot of trades and you know if you are right or wrong quickly, it therefore is ideal for novice traders.

Building a Swing Trading System in 2 Simple Steps

If you are learning currency trading and a trading system regardless of time period you need to incorporate two facets into it

1.Support and resistance

You need to look and find areas of support and resistance where prices are likely to hold or break and then move to market timing to confirm the move on your forex chart.

2.Confirmation

If you simply try and swing trade into a level of support and resistance without some indication it will hold you are effectively hoping or guessing and you will lose.

Traders who predict on forex charts lose – it’s as simple as that.

You need to act on confirmation and here you need to incorporate momentum oscillators into your forex technical analysis – if you don’t know what they are, its time to learn. Good ones to start with are the stochastic, RSI, ADX and MACD. These are plotted on most good forex chart services and are visual ( you don’t need to know the calculation) and you will soon be spotting the correct set ups.

They will allow you to check changes in price momentum and indicate whether support or resistance will hold or break. We have discussed these fully in our other articles so look them up.

Once you have confirmation you can execute your trading signal

A few other points you need to keep in mind when currency swing trading are:

Always take your profit early – before the next support or resistance level is hit as prices can soon turn around and wipe out your open profit.

Also you can trade breakouts – this is where levels of support or resistance break and prices go to new lows or highs. It’s a fact that breakout trades offer some of the best risk to reward trades you are going to get and if you catch them you can enjoy currency trading success.

With stops place it straightaway as you enter the market and don’t exit on a stop exit on a profit taking signal.

You can learn to swing trade and put together a robust simple swing trading system in a few weeks and soon be making some great FX profits.

Currency swing trading as we have said is – simple and easy to learn and can be very profitable, so try it and you will soon be getting some great trades and great profits.

PROFESSIONAL FOREX TRADING COURSE and FREE ESSENTIAL TRADER PDFS

For free 2 x trading Pdf’s with 90 of pages of essential info and more on Currency Swing Trading visit our website at: http://www.learncurrencytradingonline.com

Successful Forex Day Trading – How To Earn 10 Pips Profit Per Day

Posted on March 15, 2019 by blogger

A common approach to forex trading is to play with small stakes and target large price moves in the region of 50-200 pips. Indeed I trade this way myself using my main 4 hour trading system. However an alternative approach is to increase your stakes and look for much smaller price moves. That way you only need to find one decent trade per day if it generates around 10 pips, for instance.

It’s not that easy to do, but you can achieve this target if you employ a sound trading strategy. The best approach is to concentrate only on the major currency pairs (such as the GBP/USD, EUR/USD, USD/JPY, EUR/GBP and GBP/JPY, etc) and look for pairs that are trending strongly upwards or downwards during a given trading session.

You simply look at say the 1 hour chart of all of the major pairs and see which ones are moving strongly upwards or downwards. Then once you’ve done that you can use the shorter time frames to get a good entry point.

The best strategy is to find out which currency pairs are moving upwards on both the 1 hour and 15 minute charts, and then hone in on the 5 minute chart. You want to wait for the price to start moving sideways or downwards on this shorter time frame before turning upwards again, because this is an excellent sign that the established trend is set to continue, and therefore likely to net you at least 10 points or so if this is your target.

Many intraday traders use this type of strategy and for good reason. If you know there is a strong trend in place, then the short-term chart will present you with some decent trading opportunities, particularly near the beginning of a particular trend.

Therefore it’s fairly easy to generate a safe 10 pips every day, particularly if you use a few technical indicators to help you. For example you could use moving average crossovers, or you could wait for the RSI and/or stochastics to become oversold and then go long if there is a long term upward trend in place.

There are lots of methods you can use but the point is that if you always trade in the direction of the overall trend, then it is fairly easy to generate consistent profits. You should find that you can easily find one outstanding trading opportunity every single day across the various different currency pairs. After all you only need to generate around 10 pips per day to make a decent living from forex trading.

Ideas In Order To Create A Money-making Swing Trading Tactic

Posted on March 8, 2019 by blogger

Swing trading is a very popular style used by many forex traders all over the world. Exactly what is swing trading? When relating to forex market, swing trading is the practice of buying a currency pair at low prices and selling it later when its prices have appreciated to a higher level. To effectively do this, you have to watch the performance of one currency in relation to another. This strategy is long term and requires patience. As a newcomer in the forex market, you need to develop effective swing trading strategy for you to be profitable in the long term. Below are 4 guides to help you develop profitable strategies.

1. Make use of fundamental and technical analysis

At any time, analysis of your trading strategy is very important. To achieve success using the swing trading strategies, you must utilize both technical and fundamental analysis. You use just one of the analyses. Nevertheless, the majority of prosperous investor utilizes both the analyses together. Again, you will find that technical analysis is commonly used for swing trading strategy because it provide better entry and exit points. Unlike the fundamental analysis, technical analysis uses real market figures hence the chance of providing better results are great.

2. Watch the price curves closely

To achieve success along with swing trading strategy, you have to maintain a close watch at the price curves. The reason being price curves are very significant at indicating changes in prices, even by little margins. You dont need to be a real professional to accurately watch price curves. You only need to make use of your common sense to buy at low price and sell at high prices. However, you should watch out for signs of reversals and continuations.

3. Swing trading patterns

Trading patterns are extremely substantial to achieve success with swing trading strategy. To become a prosperous swing trader, you have to use trading patterns which will provide precise entry and close price. Again, the continuation patterns you use must confirm you are trading in the right side of the market. Or else you’ll just make deficits. It is worth spending more time to do pattern research.

4. Use momentum indicators to analyse the market

There are many momentum indicators you can use to see how the market is overbought. Some of the best momentum indicators include the RSI, MACD, stochastic and ADX indicators among others. All momentum indicators are very easy to learn and use since they are visual. If an indicator is overbought, choose a level of resistance slightly above the price. A momentum indicator that turns down signals an overbought market. Have patience and await greater odds to be successful.

In conclusion

To achieve success as well as make profits with swing trading, you have to place all of the 5 factors talked about in practice. If you’re a newbie, join the foreign exchange market open-minded prepared to learn each time. You’ll find it difficult to make profits should you not make use best strategies. Once again; you dont have to trade everyday for you to make more profits with forex market. Making money with forex market isn’t merely about buying and selling on the same day. Sticking to your swing trading strategy is the right way to make money with forex trade.

Currency Swing Trading – An Forex Trading Strategy Perfect For Novice Traders And Triple Digit Gains

Posted on November 26, 2018 by blogger

Currency trading is ideal for novice traders because it’s simple to understand, exciting and can make huge rewards. You can learn and put together a currency swing trading strategy quickly and easily and we will show you how in this article.

Swing trading requires far less discipline than long term trend following and profits and losses are taken quickly; because most traders lack discipline this is an ideal method for beginners and also the odds are better than day trading or scalping, because within a day all volatility is random. Let’s look at the logic of swing trading in more detail.

Currency markets move in the long term to the supply and demand situation but humans are emotional and the emotions of greed and fear, push prices to far up or down and then the market returns to more realistic values. The swing trader will aim to sell into these overbought and oversold areas and take profit when the market has corrected but how do you swing trade?

The first point is to keep your strategy simple, you only need to look for short term price spikes, look at some momentum oscillators to see if prices are overbought (or oversold) and look for support or resistance to hold then, wait for momentum to turn up or down into the level and enter your trade.
You should always set a target and take profits quickly – this style of trading is “hit and run” and it’s aim is to bank profits quickly.

What momentum oscillators should you use?

There are plenty to choose from but popular ones are the RSI, Stochastic and MACD.

A Simple Swing Trading Strategy for Big FX Profits

To show you how simple swing trading can be, below find a simple strategy which I use which works and we will look at it in relation to a currency which is overbought and it only uses one indicator – the stochastic:

– Draw a line on a daily chart across the highs of the stochastic.

– Wait for the stochastic to approach this resistance and normally it will normallybe overbought in the 90 area

– Pick a level of resistance above the price and place your stop behind it.

– Watch for stochastic momentum to wane and sell the currency.

– Place a time stop of 1 or 2 days for the stochastic to follow through to the downside with bearish divergence – if it doesn’t liquidate the trade, if it does look for your target.

– Look to take your profit before support – don’t wait for a test of the level in case there is a recoil – get out early when the risk reward is in your favour.

You can do this in the major currencies but also use cross rates which can offer some fantastic swing trading opportunities.

The above is a very simple system and it works well. Of course, there are many swing trading strategies you can use and if you do some research, you will find the right one for you. Keep in mind that simple strategies work best, so use a maximum of 3 indicators and keep your system simple and robust.

What Is The Best Swing Trading Indicator For You

Posted on April 4, 2018 by blogger

Finding the right swing trading indicator can sometime be very difficult. Technical trading with indicators is possible and many traders around the world are able to make profits day in and day out thanks to the insight that trading indicators offer to those with the skills to use them. If you are just starting out, then the problem is that there are many indicators available. This makes it extremely difficult when deciding on what indicator you should use. This is where new traders need a little help in understanding that all indicators work. The secret to finding the best trading indicator lies not in finding the right indicator, but instead in finding the right indicator for you and your trading style.

Some of the most popular trading indicators include RSI, MACD, Stochastics and many, many more. All of these indicators and others can be used for trading. They will work on any market and any time frame, even if you don’t swing trade. Instead of searching for the best indicator, ask yourself what trading style you prefer and what you want or need from your indicator. Indicators often display different aspects of markets. Some are leading and warn of potential areas where the market may be overbought or oversold. Some indicators are moving average based and instead they plot the average of price on the chart. If you know what you need from an indicator then you can find and start experimenting with indicators of that kind. This will make finding the right indicator for your trading style much easier and faster.

When you are testing and playing with trading indicators, always keep in mind that no indicator is perfect. When used properly, an indicator can give you a trading advantage. Some new traders make the assumption that the more indicators you place on your chart, the better a trader you will be. This couldn’t be any further from the truth. It is recommended that you use at most 3 indicators at one time. If you start using anymore than this, you may find that your charts become cluttered and that trading decisions will become more difficult. It is common that one indicator conflicts with the signal of another that you are using at the same time. In this situation which trading indicator do you follow? Keep it simple. Never use more than 3 indicators at a time.

There are plenty of trading and swing trading indicators available. Finding the right or the best trading indicator might not be easy, but you can simplify the process by first deciding which type or what kind of information do you want your technical indicator to tell you. Do you want to know when the market may be exhausted and readying to pullback? Do you instead prefer to use moving averages of price? Once you know what you want, it will be easy to test and play with indicators of that kind until you find the one that suits your style. Furthermore, always remember that more is not always better. Keep your trading indicators on your chart to a minimum. Using anymore than 3 may actually make trading more difficult, and this is something no trader should want.