One of the best forex systems, swing trading forex is a type of trading that is open for a few days to a few weeks and investors try to seize the opportunities to gain profit these days. This type of trading combines basic analysis and technical analysis to capture noticeable price movements and avoid trading at idle times in the market.
Learn more about Swing Trading
This type of mid-term trading holds open position for several days. The time for opening this transaction cannot be longer than several months. This is the basic rule when investors make Swing trading. However, there are still cases where some investors extend Swing trading forex for more than a few months but can still be considered Swing trading.
The purpose of Swing trading forex is that within a few days of opening a trade can achieve a good price. There are two types of stocks that investors often look for, including stocks with more volatility in prices and stocks with less volatility in prices. In both types, Swing trading will determine what the next price level after the volatility, changes the level of spread and from which the investor can profit from this. Traders usually make a lot of profit from Swing trading when they know how to capture a part of the predicted price change.
As mentioned above, Swing trading forex is a type of trading for several days and has a combination of fundamental analysis and technical analysis. Therefore, before any investor makes a swing trade, you need to have knowledge of technical analysis. Investopedia will be a reliable address for you so you can gain general knowledge about technical analysis. You will have 5 hours to learn via video and have exercises to be able to get used to them.
Traders often rely on the opportunity and the risk to make an assessment of the trade. Through the chart, they will identify the stop loss and take profit points during the transaction. If the investor has a risk of $ 1 to be able to make a profit of $ 5, then this is the perfect risk / opportunity. Conversely, if an investor risks $ 1 but makes a profit of $ 0.5, this is the risk / chance of failure.
In Swing trading forex, because the medium-term nature is open for a few days, traders often use this type of technical analysis and they only use fundamental analysis when they want to advance the analysis. For example, when swing traders see stock prices rise, they use fundamental analysis to verify assets are also improving.
Every day traders can spend from 15 minutes to 1 hour to view and find opportunities through charts, from which they can also identify appropriate stop loss and profit points.
Swing Trading Strategies
Every day Swing traders look at the charts. There are a variety of chart types including: moving average crossovers, head and shoulders, cup-and-handle patterns, triangles and flags. By watching this in combination with other indicators it can help a trader create a perfect trading plan.
In conclusion, through predictions of asset price volatility, investors of Swing trading forex will set themselves a plan that is consistent with profit taking and stopping losses that can generate profits. However this is not so easy to implement. With a good risk / opportunity, making a profit multiple times is not necessary because what you need now is a big win through many trades. Next, learn about the best currency pairs to trade.