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Swing trading

Tips for Pips! You got those ideas which bring those Precious Pips home in swinging markets. Do show your trophies in this forum. But well, wouldn't it be the best to share your strategies along with those trophies? Cheers and let's sip the pips.
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Swing trading

Postby Himanshu » Wed Jul 20, 2011 7:12 am

Any ideas, strategies and trade configuration for swing trading? Well, let's hope we get some good from the pros and also questions from members who wish to hone their skills for swing trading. Request your contributions to make it a lively and useful place.
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Re: Swing trading

Postby Alchemist » Mon May 07, 2012 1:22 pm

I'm surprised this section isn't active. I might as well kick things off.

On a daily chart draw a trend line and horizontal s/r lines. In a trend, price typically pulls back to the trend line, then continues in the direction of the trend. You want to enter just after the pullback, as price is starting to move back in the direction of the trend.

Look for price to pull back to the trend line, which wants to be backed up by a horizontal s/r line. Use Fib levels for extra confirmation. Price is likely to reverse at this point, so look for a candle/bar reversal pattern to enter a trade.

Obviously there is more to it than that - stops, taking profits etc. - but if you are new to swing trading, then I would forget about these other things for now. Wait until you have spent some time practicing.
"He who understands nothing is worthless." ~ Paracelsus
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Re: Swing trading

Postby Kate » Mon May 07, 2012 11:36 pm

Alchemist wrote:I'm surprised this section isn't active. I might as well kick things off.


Someone is always needed to lead and continue leading :P

Alchemist wrote:On a daily chart draw a trend line and horizontal s/r lines. In a trend, price typically pulls back to the trend line, then continues in the direction of the trend. You want to enter just after the pullback, as price is starting to move back in the direction of the trend.

Look for price to pull back to the trend line, which wants to be backed up by a horizontal s/r line. Use Fib levels for extra confirmation. Price is likely to reverse at this point, so look for a candle/bar reversal pattern to enter a trade.

Obviously there is more to it than that - stops, taking profits etc. - but if you are new to swing trading, then I would forget about these other things for now. Wait until you have spent some time practicing.


Wouldn't it help if some charts are posted with the explanation?
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Re: Swing trading

Postby Alchemist » Wed May 09, 2012 3:46 am

Kate wrote:Wouldn't it help if some charts are posted with the explanation?


You're absolutely right, Kate. Don't worry, I'm working on it.
"He who understands nothing is worthless." ~ Paracelsus
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Re: Swing trading

Postby Alchemist » Thu May 10, 2012 9:05 pm

Okay, some explanatory charts. They are both the same Daily chart, but the second is zoomed out so you can see the horizontal support/resistance line more clearly. It should be noted that support/resistance lines are to be regarded more as zones. The second chart is also a good example of previous resistance becoming support.

Chart 1.gif
Chart 1.gif (8.89 KiB) Viewed 6521 times


Chart 2.gif
Chart 2.gif (14.18 KiB) Viewed 6521 times

I hope I've made things clear. If anyone needs more explanation just let me know.

NOTE: As you can see, the images need sorting out. I'm working on it. :)
"He who understands nothing is worthless." ~ Paracelsus
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Re: Swing trading

Postby Kate » Mon May 14, 2012 9:22 am

Alchemist wrote:Okay, some explanatory charts. They are both the same Daily chart, but the second is zoomed out so you can see the horizontal support/resistance line more clearly. It should be noted that support/resistance lines are to be regarded more as zones. The second chart is also a good example of previous resistance becoming support.

Chart 1.gif


Chart 2.gif

I hope I've made things clear. If anyone needs more explanation just let me know.

NOTE: As you can see, the images need sorting out. I'm working on it. :)


Thanks Al. Do you put limit orders? What about stop loss etc?
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Re: Swing trading

Postby Alchemist » Mon May 14, 2012 3:56 pm

Hi Kate,

I'm going to be covering orders and stops, as well as all of the other elements of my approach. I'll be doing it over a number of posts, and I'm working on the next one as we speak. It will cover entry signals/setups as well as order types and stops.
"He who understands nothing is worthless." ~ Paracelsus
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Re: Swing trading

Postby Alchemist » Sun May 20, 2012 12:32 pm

When swing trading, you are taking advantage of certain characteristics/tendencies of a trend:

1. When price is trending, it has a tendency to continue in the direction of that trend.
2. Price often pulls back to, or near, the trend line then turns round and continues in the direction of the trend.
3. The probability of this happening is higher when there is additional confirmation - horizontal s and r, Fib levels.

When you get a number of favourable factors coming together like this, it is referred to as confluence. So, price has reached an area, or zone, of confluence and we are now looking for trade entries. This is where candle/bar formations come in. In a nutshell, when price is in a zone of confluence and you get a favourable candle/bar formation you enter a trade (or rather, you place an order).

Candle/Bar Formations

There are quite a number of candle/bar formations, or patterns, particularly for candles. However, I prefer to use just three of the higher probability ones: Pin Bars, 2 Day Pin Bars and Outside Bars.

Pin Bars:

pin bar.gif
pin bar.gif (1.96 KiB) Viewed 6445 times

2 Day Pin Bars:

2 day pin bar.gif
2 day pin bar.gif (4.35 KiB) Viewed 6445 times

Outside Bars:

outside bar.gif
outside bar.gif (2.12 KiB) Viewed 6445 times

With all three formations/patterns trades are entered a few pips beyond the bar, in the direction of the trend.

I will cover some actual trade examples in my next post, but until then I recommend that you practice looking for zones of confluence. When you identify them, look for bar formations/patterns in those zones. I was going to cover order types and stops in this post, but I decided I needed to split things up more. Avoid information overload.
"He who understands nothing is worthless." ~ Paracelsus
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Re: Swing trading

Postby Alchemist » Tue May 29, 2012 8:53 pm

I will now show you some actual trade examples. Remember, you are looking for zones of confluence. When you identify them you look for bar formations in those zones.

Example eurusd.gif
Example eurusd.gif (16.02 KiB) Viewed 6337 times

Example gbpusd.gif
Example gbpusd.gif (19.71 KiB) Viewed 6337 times

Example usdchf.gif
Example usdchf.gif (18.52 KiB) Viewed 6337 times

I recommend that you spend some time practicing looking for these types of setups. In my next post I will cover trade management.
"He who understands nothing is worthless." ~ Paracelsus
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Re: Swing trading

Postby sirkay » Sat Jun 30, 2012 10:45 pm

Alchemist wrote:When swing trading, you are taking advantage of certain characteristics/tendencies of a trend:

1. When price is trending, it has a tendency to continue in the direction of that trend.
2. Price often pulls back to, or near, the trend line then turns round and continues in the direction of the trend.
3. The probability of this happening is higher when there is additional confirmation - horizontal s and r, Fib levels.

When you get a number of favourable factors coming together like this, it is referred to as confluence. So, price has reached an area, or zone, of confluence and we are now looking for trade entries. This is where candle/bar formations come in. In a nutshell, when price is in a zone of confluence and you get a favourable candle/bar formation you enter a trade (or rather, you place an order).

Candle/Bar Formations

There are quite a number of candle/bar formations, or patterns, particularly for candles. However, I prefer to use just three of the higher probability ones: Pin Bars, 2 Day Pin Bars and Outside Bars.

Pin Bars:

pin bar.gif

2 Day Pin Bars:

2 day pin bar.gif

Outside Bars:

outside bar.gif

With all three formations/patterns trades are entered a few pips beyond the bar, in the direction of the trend.

I will cover some actual trade examples in my next post, but until then I recommend that you practice looking for zones of confluence. When you identify them, look for bar formations/patterns in those zones. I was going to cover order types and stops in this post, but I decided I needed to split things up more. Avoid information overload.







Does it mean that when I spot bearish pin bar today in daily tf i should place sell entry next day?
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