Simple Swing Trading Strategies - A Simple Powerful Strategy for Big Profits in 30 Minutes a Day!

Simple Swing Trading Strategies

Simple Swing Trading Strategies

If you want a simple to understand and easy to apply Forex trading strategy which makes big gains, you should try using a Forex swing trading strategy. Enclosed in this article, you will find a simple Forex swing trading method you can use to and make big currency trading profits in just 30 minutes a day - Lets take a look at it in more detail.

Before we look at the strategy, let's take a look at the logic upon which swing trading is based. Swing trading is based on the simple concept that traders are emotional and will push prices to far to the upside when greed is present and to far to the downside when fear is present and you will see short term price spikes on any currency chart when this occurs.

These price spikes never last long and prices soon return to fair value and the aim of the swing trader is simple - sell into greed and buy into fear and make a profit as prices return to more realistic levels - that's the theory,now we need to look at a trading method to make profits from these price spikes.

Below we will outline a simple strategy you can use and we will look at it from the point of view of making money from a price spike that to the upside but the same logic will also work in a bear market - here's the strategy.

- Look for a short term price spike to occur on a chart and then, check to how overbought the currency is in historical terms. Simple Swing Trading Strategies

- To measure how overbought prices are, you can use some momentum indicators and there are many to choose from however the best in my view are the stochastic, the RSI and the MACD. These indicators are easy to learn and will show you how overbought the currency is in historical terms. If the indicator is overbought, you need to wait for the trading signal to be generated.

- To generate your trading signal, wait for momentum to fall as prices are still moving to the upside - this is known as divergence and warns that a prices will fall so you go short.

- Your stop is placed immediately, above nearby resistance and you then need to set a target which should be just above, the level of support you think prices will pull back too. You shouldn't wait for support to be tested just in case of a rebound, take your profit early, get out the market and wait for the next opportunity.

- When swing trading always remember the bigger the price spike and the more overbought the market is, the better the opportunity will be be, in terms of profit potential so only trade extreme moves.

Above is a very simple Forex trading strategy which works and will always work, traders will always be governed by the emotions of greed and fear. If you learn to Forex swing trade correctly, you will soon be making big profits in just 30 minutes a day and enjoying, long currency trading success. Simple Swing Trading Strategies

Simple Swing Trading Strategies - A Simple Powerful Strategy for Big Profits in 30 Minutes a Day!

By: Trading Expert

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