Does the market always appear to be declining after hitting the buy button?
Do you wish your trade would end soon because you would hate to watch your P&L run up and down?
Are you frustrated to see that the market is about to reach your profit, but to make a 180 degree return and hit your stop loss?
If you answered YES to any of the above, then I got your answer.
Swing Trading.
Now you may wonder:
“What is bargain trading and how does it work?
Don't worry.
Because in this post, you'll learn everything you need to know about swing trading - including 3 effective swing trading strategies.
Sounds good?
After that let's start…
The Basics of Swing Trading: What is trading and how it works
Swing trading is a trading method that seeks to catch a swing (or "single movement").
The idea is to put up with “as little pain” as possible by getting out of your jobs before the opposing pressure comes.
This means that you will book your profits before the market changes and clear your profits.
Here is an example:
Next, here are the pros and cons of swing trading…
Beauty:
You do not need to spend hours in front of your guard because your trade lasts for days or weeks
Suitable for those who have a full-time job
Less stress compared to day trading
Cons:
You will not be able to ride styles
You have the risk of sleeping through the night
So far so good?
After that let's move on ...
Swing trading methods # 1: Enter the box
And one thing…
The swing trading strategies I am about to share have some “interesting” words sticking to it.
This helps you to better understand trading settings so you know how to use them in your trading.
Now, let me introduce you to today's first swing trading strategy…
He stuck to the box.
It alternates trading in a broader market because the market is “trapped” between Support and Resistance (somehow like a box).
Here's how it works:
Identify the wider market
Wait for the price to drop below Support
If the price drops below Support, then wait for a firm price rejection (close above Support)
If there is a strong price denial, then go for a long time to open the next candle
Set your 1 ATR stop loss below the candlestick low and take a profit before Resistance
Here is an example:
Now you may wonder:
"Why should I take advantage before Reject?"
Remember…
As a swing trader, you only look at the “one move” in the market.
So in order to ensure a great deal of success, you need to get out of your job before the Resistance Steps.
Does it make sense?
It is good because we will apply this concept to the remaining trading strategies.
Next…
Swing trading strategies # 2: Catch the wave
This swing trading strategy is focused on catching “one-way” in a trending market (like a surfer trying to catch a wave).
The idea here is to get in after the pull back is over when the trend is likely to continue.
However…
This does not apply to all types of trends.
Instead, you want to trade in styles that have a deeper appeal because there is a lot of “meat” looking up.
As a guide, you want to see the pull at least a maximum travel time of 50 (MA) or deeper.
Now, let's learn how we can catch this wave in our swing trading strategy.
Identify a practice that respects 50MA
If the market is approaching a moving average, then wait for a bullish price rejection
If there is a bullish price rejection, then go a long way to the next candle
Set your 1 ATR stop loss below the low and take profit just before the maximum rise
Now you may wonder:
“But why is the average age of 50 going?”
I go with 50MA because it is viewed by retailers around the world so that that leads to the prophecy of self-fulfillment.
And usually, 50MA is in line with the previous Resistance turned on Support which makes it very important.
Now, that doesn't mean you can't use 55, 67, 89, any moving average you choose because the concept is what matters.
Swing trading methods # 3: Fade to move
Now you may be thinking:
"What is the meaning of blurring?"
It means… to argue.
Basically, he trades against pressure (also known as counter-trend).
So, if you are a trader who likes to “go against the crowd”, then this trading strategy is for you.
Here's how it works…
Identify the strong movement of the previous high-output opposition
Note the strong price rejection as the candle creates a strong bearish closure
Blow the next candle and set your 1 ATR stop loss above the heights
Take advantage before the speed limit
Here is an example:
Manje…
You have learned 3 types of effective swing trading strategies.
But there is one important thing that is not covered ...
Your business management.
How to manage your tasks so that you can trade with confidence and confidence
Now, with business management, there are 2 ways you can do it…
Automatic trade management
Effective management
I will explain…
1. Automatic trade management
This way, you'll allow the market to come to terms with your loss of position or profit - or whatever in between, you can't do anything about it.
Ideally, you want to set your distance from the “noise” of the market and have a targeted profit within the appropriate reach (before the main market structure).
Here are the pros and cons…
Beauty:
Trading is more comfortable as your decisions become “default”
Cons:
You cannot get out of your trade prematurely even though the market is showing signs of regression
It is possible to see the winning trade as a full 1R loss
2. Do it
For more detailed information please see this video
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