Forex Trading – Strategia Monday

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MattOption

W dzisiejszym artykule chciałbym podzielić się z Tobą strategią oraz wynikami, które udało mi się “uzbierać” w ciągu ostatnich 2 tygodni. Technika, którą dzisiaj Tobie zaprezentuję prawdopodobnie będzie naszą wspólną strategią jaką wszyscy razem będziemy używać do inwestowania. Zaznaczam, że 2 tygodnie na forex to naprawdę bardzo mało dlatego będę zbierał coraz więcej danych i jeżeli na przykład po 3 miesiącach strategia będzie przynosiła zyski to utworzymy z tego stały cykl i rozwiniemy ten pomysł. Technika opiera się na systemie doboru wykresów Chartlo, który informuje nas o potencjalnym trendzie. Z racji tego, że na forexie trend is your friend to będziemy otwierać pozycje właśnie zgodnie z kierunkiem powiadomienia jakie dostarczy nam system. Oczywiście nie będziemy zagrywać na podstawie samego powiadomienia, ale dodamy do tego jeden wskaźnik – Stochastic. Na początku jednak założenia.

Założenia

  • Inwestując tą metodą polecam ustawić poziom Take Profit na +40% oraz poziom Stop Loss na -20%. Dzięki takiemu rozwiązaniu prawdopodobieństwo jest po naszej stronie. Nawet jeżeli nasze wyniki będą wynosiły 35% to i tak zarobimy pieniądze. Korzystając z tej strategii celuję w skuteczność 60% co da nam naprawdę bardzo przyzwoity zysk. Jeżeli uzyskamy skuteczność 40% to również będziemy zarabiać jednak nie radzę schodzić poniżej tego progu
  • Wykresy dobieramy tylko w poniedziałek po godzinie 15:00. Dlaczego? W podanych później parametrach system zlicza ostatnie 15 świec i porównuje je z historią. O godzinie 15:00 mija około 15 godzin od uruchomienia rynków więc system liczy tylko i wyłącznie dane z poniedziałku i nie pobiera danych sprzed zamknięcia rynków.
  • Wszystkie pozycje powinny zamknąć się w ciagu najbliższych pięciu dni – jeżeli jednak opcja nie zostanie zamknięta to cierpliwie czekamy kolejny tydzień aż cena dobije do poziomu Take Profit lub Stop Loss
  • Według poniższej instrukcji wystarczy żeby cena wzrosła o 1% i takie zagranie można zaliczyć jako wygraną. Pamiętajmy, że Stop Loss jest mniejszy dlatego jeżeli cena spadnie o 0.50% to wtedy opcja jest przegrana
  • Do analizy wykresów używamy TradingView.com. Problem jest taki, że jeżeli ktoś chce ustawić sobie powiadomienia o sygnałach to musi wykupić jeden z płatnych pakietów ponieważ wersja darmowa pozwala ustawić tylko jeden alert
  • Testując zagrania na historii nie uwzględniam spreadu, który ma marginalne znaczenie w przypadku zagrań na przynajmniej kilka dni

Konfiguracja Chartlo

Przechodzimy do konfiguracji systemu. Tutaj sprawa jest bardzo prosta i przydadzą się nowe funkcje, które wdrożyliśmy w tym tygodniu. Zaznaczam, że aplikacja jest cały czas w trakcie BETA testów i stopniowo poprawiamy jej funkcjonowanie. Pierwsze dwa tygodnie po rejestracji są całkowicie darmowe i po tych testach możesz podjąć decyzję czy przedłużasz subskrypcję na kolejny miesiąc czy też nie.

Krok 1: Po zalogowaniu się do aplikacji kliknij na przycisk “włącz powiadomienia dla wszystkich par walutowych” i skonfiguruj powiadomienia w dokładnie taki sposób jaki prezentuję na poniższym screenie

Krok 2: Przejdź do ustawień i ustaw ograniczenia powiadomień w podany poniżej sposób. Jest to krok opcjonalny dla osób, które nie chcą mieć bałaganu w powiadomieniach. Dzięki tym parametrom będziesz dostawiał powiadomienia tylko i wyłącznie po godzinie 15:00 co pozwoli w łatwy sposób wybrać pierwszych 5 wykresów, które nas interesują. Oczywiście w każdej chwili możesz wyłączyć tę opcję i dostawać powiadomienia o każdej porze.

I to tak naprawdę tyle jeżeli chodzi o konfigurację systemu. Proste prawda? Nie pozostaje nam nic innego jak czekać na poniedziałek i odczytać pierwsze 5 powiadomień jakie otrzymamy. Będzie to decydujący moment ponieważ będziemy inwestować na właśnie tych pięciu wykresach. Warto jednak w pewien sposób zorganizować sobie pracę i oznaczyć w jakiś sposób pary walutowe na których będziemy inwestować – możemy zapisać sobie to na kartce lub dodać w systemie te pary do ulubionych klikając na gwiazdkę w prawym górnym rogu kafelka pary walutowej.

Konfiguracja zagrań

Jak zapewne większość z was wie używam brokera IQ Option więc będę posługiwał się “miarami” dedykowanymi właśnie dla tej platformy. Oczywiście bez problemu możesz przełożyć to na zupełnie innego brokera ponieważ tak naprawdę nie ma znaczenia gdzie otwierasz pozycje – liczy się tylko i wyłącznie jakość owych zagrań.

  1. Ustaw Stop Loss na -20%
  2. Ustaw Take Profit na +40%
  3. Ustaw mnożnik/lewar/dźwignię na x50/1:50
  4. Polecam otwierać pozycje za większe sumy na przykład $500 lub $1000. Brzmi to dość strasznie, ale pamiętajmy, że ryzykujemy tylko i wyłącznie 25% zainwestowanych pieniędzy (Stop Loss). Zwiększenie kwoty inwestycji pozwoli ograniczyć lewar i zwiększyć bezpieczeństwo otwieranych transakcji. Także jeżeli chcesz zdecydować się na ryzyko wysokości $100 to otwieraj pozycje za $400 (40% z 400 daje nam 100)

Konfiguracja TradingView

Tak naprawdę TradingView nie jest bardzo przydatne w tym przypadku, ale jednak potrafi bardzo ułatwić życie dlatego zalecam użyć TradingView do powiadomień jakie generuje podczas przecięcia na Stochasticu. Nie będziemy musieli sprawdzać kursu ceny co godzinę i kontrolować czy linię się przecięły – zostaniemy o tym po prostu poinformowani mailowo.

Krok 1: Ustaw interwał w lewym górnym rogu ekranu na 1 godzinę

Krok 2: Wybierz wykres, który wskazał system Chartlo i dodaj wskaźnik CM Stochastic Multi-TimeFrame. Jest to według mnie najlepsza wersja Stochastica ponieważ mamy pokazane idealnie gdzie otwierać pozycje i bardzo to ułatwia sprawę. Wskaźnik możesz dodać klikając na górnym panelu napis “Indicators” (lub “wskaźniki” w polskiej wersji) i wyszukując “Stochastic”. Warto kliknąć dwuklikiem na linie wskaźnika, przejść do zakładki “inputs” i zaznaczyć opcję “Show Back Ground Highlights when stoch cross – any cross?”. Dzięki temu zabiegowi będziesz miał oznaczone każde przecięcie, a nie tylko to w strefach wykupu wyprzedaży

Krok 3 (opcjonalny): Dodaj powiadomienia klikając na ikonkę budzika znajdującą się na górnej belce TradingView.com i skonfiguruj powiadomienia w taki sam sposób jak na poniższym obrazku

Krok 4: Przefiltruj powiadomienia sprawdzając czy sygnał jest na wzrost czy na spadek. Jeżeli system Chartlo wskazał, aby grać na wzrost to czekamy na przecięcie poniżej środowej linii. Analogicznie w przypadku gry na spadek. Poniżej przykładowe miejsce z oznaczeniem gdzie zostało wygenerowanie powiadomienie Chartlo (biała strzałka) i gdzie należało otworzyć pozycję przy pomocy Stochastica (zielona strzałka). W tym przykładzie graliśmy na spadki i cena po otworzeniu pozycji spadła o 1.09% co dało by nam zysk 50% (Take Profit).

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Wyniki

Tak jak wspomniałem testuję strategię od dwóch tygodni i wszystko odbywa się powoli ponieważ jest to forex i nie ma sensu otwierać zbyt wielu pozycji. Trzeba podejść do tego rozważnie i z wyczuciem. Poniżej widzisz moje wyniki po ostatnich dwóch tygodniach. Pozwól, że nie będę podrzucał tutaj 10 screenów zagrań ponieważ wpis stanie się nieczytelny i przepchany obrazkami dlatego jak tylko nagram film to oczywiście pokażę miejsca zagrań i podrzucę wspomniane nagranie do tego artykułu, aby każdy miał jasność jak to wygląda. Tak jak wspomniałem jest to forex i skuteczność na pierwszy rzut oka może nie robić wrażenia, ale zapewniam Cię, że wyniki są naprawdę bardzo w porządku.

Kwota inwestycji: $1000 (ryzyko $200)

Monday Strategy

Tydzień Zagranie 1 Zagranie 2 Zagranie 3 Zagranie 4 Zagranie 5 ZYSK:
Dochód: +$3300
1 AUDJPY – WIN CHFJPY – WIN USDCAD – LOSS AUDUSD – WIN EURUSD – LOSS +$1000
2 AUDJPY – LOSS EURNZD – LOSS AUDUSD – WIN EURGBP – WIN EURCAD – LOSS +$250
3 GBPCAD – LOSS GBPUSD – LOSS USDSEK – LOSS -$750
4 EURNZD – WIN EURGBP – LOSS GBPAUD – WIN GBPCHF – WIN GBPUSD – WIN +$1400
5 USDJPY – WIN EURNZD – LOSS USDYRY – LOSS AUDCAD – LOSS USDNOK – WIN +$200
6 USDSEK – WIN USDNOK – WIN GBPCAD – LOSS EURNZD – WIN +$1000
7 USDNOK – LOSS EURCAD – WIN GBPCAD- LOSS AUDUSD – WIN AUDCAD – LOSS +$200
8 GBPCAD – LOSS USDCAD – LOSS EURGBP – LOSS USDNOK – LOSS USDCHF – WIN -$400
9 AUDUSD – LOSS USDNOK – WIN AUDCAD – LOSS GBPJPY – WIN USDRUB – WIN +$800
10 GBPCAD – LOSS EURAUD – LOSS USDNOK – LOSS USDRUB – LOSS AUDCAD – WIN -$400

Nie trudno wyliczyć, że skuteczność wynosi 50% i jak na opcje binarne taki wynik dałby nam stratę. Jednak przypominam po raz kolejny, że jest to forex i w przypadku takiej metody zarządzania poziomami Stop Loss i Take Profit musimy spaść do poziomu 30%, aby zacząć tracić pieniądze także mamy cały czas 20% w zapasie. Z moich obserwacji wynika, że skuteczność oscyluje w okolicach 60-65%, ale niestety nie mam tych danych udokumentowanych dlatego dzielę się tym na co mam “kwity”. Celem jest podbicie skuteczności do 60% i wtedy uznam, że strategia naprawdę pozwoli zarobić dobre pieniądze przy stosunkowo niewielkim wysiłku. Pamiętajmy, że jest to metoda do naśladowania dlatego nie ma tutaj żadnych udziwnień w stylu “unikanie” zagrań ponieważ każdy będzie miał inne rezultaty. Inwestujemy zawsze w ten sam sposób i tylko na podstawie wskaźnika i systemu doboru wykresów, który jest tutaj kluczem.

Forex & Commodities Trading Levels to Watch on Monday

EUR/USD – Technical Levels
Support Resistance
1.0615 1.0809
1.0529 1.0917
1.0335 1.1111
Key Trading Level: 1.0723

USD/JPY – Technical Levels
Support Resistance
109.59 111.77
108.38 112.72
106.2 114.9
Key Trading Level: 110.55

GBP/USD – Technical Levels
Support Resistance
1.1492 1.1872
1.1333 1.2094
1.0953 1.2474
Key Trading Level: 1.1713

GOLD – Technical Levels
Support Resistance
1480.03 1516.8
1461.35 1534.89
1424.58 1571.66
Key Trading Level: 1498.12

WTI CRUDE OIL – Technical Levels
Support Resistance
21.32 27.36
18.89 30.96
12.85 37
Key Trading Level: 24.92

Forex Swing Trading: The Ultimate 2020 Guide + PDF Cheat Sheet

Finding the right Forex strategy is tough.

Where do you start? How do you know when you’ve found the right one?

Considering the thousands of trading strategies in the world, the answers to these questions are difficult to pin down.

It only gets worse when you add the endless number of technical indicators.

But it doesn’t have to be that way.

Why not start with identifying a suitable trading style, such as Forex swing trading?

Compared to the seemingly endless numbers of strategies, there are far fewer trading styles. While the exact figure is debatable, I would argue that there are less than ten popular styles in existence.

Once you’ve identified a trading style that fits your personality, it becomes much easier to find a suitable strategy within that style.

Get Instant Access to the Same „New York Close” Forex Charts Used by Justin Bennett!

Exclusive Bonus: Download the Forex Swing Trading PDF Cheat Sheet that will show you the exact 6-step process I use when trading the Forex market.

If you have identified swing trading as a candidate—or just want to know more about it—then this post is for you.

By the time you finish, you will know exactly what swing trading is and whether it’s right for you. I will also share a simple 6-step process that will have you profiting from market swings in no time.

Read on to learn how to make swing trading work for you.

Trading Styles vs. Strategies

Before we move on, it’s important to know the difference between styles and strategies.

As I mentioned above, there are far fewer trading styles than there are strategies.

Here are a few of the most popular styles:

  • Swing trading
  • Day trading
  • Scalping (often a subset of day trading)
  • Position trading
  • High-frequency trading

Within each of these, there are hundreds if not thousands of strategies. In other words, there are many different ways to day trade just as there are many ways to swing trade.

It’s up to each trader to make the style his or her own.

For instance, one day trader may use the 3 and 8 exponential moving averages combined with slow stochastics. Another trader of the same style may use a 5 and 10 simple moving average with a relative strength index.

Both are considered day traders, but their strategies are different.

The same goes for swing trading. The endless number of indicators and methods means that no two traders are exactly alike.

That’s especially true once you add human psychology as a variable.

In summary, trading styles define broad groups of market participants, while strategies are specific to each trader.

What is Forex Swing Trading?

As the name implies, swing trading is an attempt to profit from the swings in the market.

These swings are made up of two parts—the body and the swing point.

As traders, it’s our job to time our entries in a way that catches the majority of each swing body.

While catching a swing point can be incredibly lucrative, it isn’t absolutely necessary.

In fact, attempting to catch the extreme tops and bottoms of swings can lead to an increase in losses. The best way to approach these trades is to stay patient and wait for a price action buy or sell signal.

I’ll get into those various strategies shortly. For now, just know that the swing body is the most lucrative part of any market move.

Later in this lesson, I will also show you a way to use those swing points to evaluate momentum.

Day Trading vs. Swing Trading

On the opposite end of the spectrum from swing trading we have day trading. These two couldn’t be further apart.

As you now know, the goal with swing trading is to catch the larger swings in the market. Naturally, this requires a holding period that spans a few days to a few weeks.

Day trading, on the other hand, uses very short holding periods; sometimes just a few seconds.

There are other styles of trading, but these are two of the most popular.

I’ll get into some of the pros and cons of both, but first let’s take a look a simple 6-step process for swing trading.

Step 1: Move to the Daily Time Frame

I spend most of my time on the daily charts. They offer a bigger picture of what’s happening with the price action and provide more reliable signals.

However, not all daily time frames are created equal.

I use a specific type of chart that uses a New York close. Each 24-hour session closes at 5 pm EST, which is considered the Forex market’s unofficial closing time.

It is possible to use the 4-hour charts for swing trading, but I’ve found that the daily works best.

My suggestion is to start with the daily time frame. Once you become profitable at swing trading with the daily, feel free to move to the 4-hour time frame.

As a general rule, price action signals become more reliable as you move from the lower time frames to higher ones.

Step 2: Draw Key Support and Resistance Levels

Apart from Step 1, this is the most important piece of the entire process.

Think of drawing key support and resistance levels as building the foundation for your house. It’s impossible to identify favorable swing trades without them.

Before I show you some examples using swing trades, let’s define the two types of levels.

Horizontal support and resistance

These are the most basic levels you want on your charts. They provide a great foundation for trading swings in the market and offer some of the best target areas.

If you want to know how to draw support and resistance levels, see this post.

Trend lines

Not all technical traders use trend lines. If I’m being honest, I have no idea why someone would ignore them, especially a swing trader.

They not only offer you a way to identify entries with the trend, but they can also be used to spot reversals before they happen.

Be sure to review the lesson I wrote on trend strength (see link above). It will explain everything you need to know to use trend lines in this manner.

Step 3: Evaluate Momentum

At this point, you should be on the daily time frame and have all relevant support and resistance areas marked.

Remember how I mentioned using swing points to evaluate momentum earlier in the post?

Well, this is where those swing highs and lows come in handy.

There are three types of market momentum or lack thereof.

  1. Uptrend: Higher highs and higher lows
  2. Downtrend: Lower highs and lower lows
  3. Range: Sideways movement

A market that’s in an uptrend is carving higher highs and higher lows.

Notice how each swing point is higher than the last. You want to be a buyer during bullish momentum such as this.

On the opposite end of the spectrum we have a downtrend. In this case, the market is carving lower highs and lower lows.

You want to be a seller here.

We’ll get into the various price action signals in the next step.

Last but not least is a ranging market. As the name implies, this occurs when a market moves sideways within a range.

Although the chart above has no bullish or bearish momentum, it can still generate lucrative swing trades.

In fact, ranges such as the one above can often produce some of the best trades. This is mostly due to the way that support and resistance levels stand out from the surrounding price action.

Just look at the two pin bars in the chart below.

Step 4: Watch for Price Action Signals

Let’s review where you should be at this point.

Steps 1 and 2 showed you how to identify key support and resistance levels using the daily time frame.

Then in Step 3, you learned to evaluate the market’s momentum. This tells you whether the market is in an uptrend, a downtrend or range-bound.

If the market is in an uptrend, you want to begin watching for buy signals from key support.

My two favorite candlestick patterns are the pin bar and engulfing bar. You can learn more about both of these signals in this post.

Here is a great example of a bullish pin bar that occurred at key support during an uptrend.

The goal is to use this pin bar signal to buy the market. By doing this, we can profit as the market swings upward and continues the current rally.

On the flip side, if the market is in a downtrend, you want to watch for sell signals from resistance.

Again, we use a signal like the pin bar to identify the swing high, also called the swing point.

You might not catch the entire swing, and that’s okay. The idea is to catch as much of it as possible, but waiting for confirming price action is crucial.

When looking for setups, be sure to scan your charts. Don’t make the mistake of searching for setups.

Those two actions may sound similar but they are far from it.

Scanning for setups is more of a qualitative process. In other words, you’re scanning for the very best setups and if you don’t find anything, that’s okay.

Most traders feel like they need to find a setup each time they sit down in front of their computer. This is called searching for setups.

So remember to scan for swing trade opportunities; never go searching for them.

Step 5: Identify Exit Points

There are two rules when it comes to identifying exit points.

The first rule is to define a profit target and a stop loss level. Many traders make the mistake of only identifying a target and forget about their stop loss.

Don’t make that mistake. In order to calculate your risk as explained in the next step, you must have a stop loss level defined.

The second rule is to identify both of these levels before risking capital. This is the only time you have a completely neutral bias.

As soon as you have money at risk, that neutral stance goes out the window. It then becomes far too easy to place your exit points at levels that benefit your trade, rather than basing them on what the market is telling you.

So what’s the best way to identify your exit points?

Simple. Just use the support and resistance levels you identified in Step 2.

Remember that bullish pin bar on the GBPUSD? (See Step 4 if you need a refresher.)

Here is a simple way to determine a profit target.

In this case, the GBPUSD rallied past our target, and that’s okay.

Remember that the goal is to catch the majority of the swing. We don’t need to catch the entire move to make a profit.

We can do the same thing with the AUDNZD bearish pin bar from Step 4.

Remember, those horizontal areas and trend lines are your foundation.

Once they are on your chart, use them to your advantage. That involves watching for entries as well as determining exit points.

Step 6: Calculate and Manage Risk

Once you have identified your exit points for the trade, it’s time for some risk management.

Before I discuss how to identify stop loss levels and profit targets, I want to share two important concepts.

The first is R-multiples. This is a way to calculate your risk using a single number.

For instance, a setup with a 100 pip stop loss and a 300 pip target is 3R.

Similarly, if your risk is $100 and you stand to make $500, the risk to reward ratio is 5R.

The second concept I want to discuss is asymmetry.

A favorable risk to reward ratio is one where the payoff is at least twice the potential loss. Written as an R-multiple, that would be 2R or greater.

You can learn about both of these concepts in greater detail in this post.

When calculating the risk of any trade, the first thing you want to do is determine where you should place the stop loss.

For a pin bar, the best location is above or below the tail.

The same goes for a bullish or bearish engulfing pattern. A stop loss that’s approximately 10 to 20 pips above or below the candlestick being traded is a good place to start.

Now that you have the stop loss placement identified, it’s time to determine the profit target.

This is where those key levels come into play once more. Remember that when swing trading the goal is to catch the swings that occur between support and resistance levels.

So if the market is trending higher and a bullish pin bar forms at support, ask yourself the following question.

Where is the next key resistance level?

The answer will not only tell you where to place your target, but will also determine whether a favorable risk to reward ratio is possible.

If it is, then you may have a valid buying opportunity in front of you.

If not, you may want to stay on the sideline.

Is Swing Trading Right for You?

There is no right or wrong answer here. After more than a decade of trading, I found swing trades to be the most profitable.

Keep in mind that I’ve tried just about every trading style and strategy under the sun. Before 2020 I experimented with everything from one-minute scalping strategies to trading Monday gaps.

However, just because swing trading Forex has worked for me doesn’t mean it won’t work for you.

Finding a profitable style has more to do with your personality and preferences than you may know. In fact, if your chosen style doesn’t fit your personality, you are bound to struggle.

The key points below will help you decide if swing trading is right for you.

You might want to be a Forex swing trader if:

– You don’t mind holding trades for several days

Most Forex swing trades last anywhere from a few days to a few weeks. This means holding positions overnight and sometimes over the weekend.

There are, of course, a few ways to manage the risks that accompany a longer holding period. One way is to simply close your position before the weekend if you know there is a chance for volatility such as a government election.

– You want more freedom with your time

Swing trading Forex is what allowed me to start Daily Price Action in 2020. Without using this style of trading, there is no way I’d have the time to maintain this website.

On average, I spend no more than 30 or 40 minutes reviewing my charts each day. Spending more time than this is unnecessary and would expose me to the risk of overtrading.

– You don’t mind taking fewer trades but making more on each one

Because swing trading Forex works best on the higher time frames, opportunities are limited. You may only get five to ten setups each month.

However, the return from each one can be much greater than those who day trade.

For instance, my minimum risk to reward ratio is 3R. That means for every 1% of my account balance at risk, I stand to make a 3% profit.

– You’re looking for a slower paced style of trading

When it comes to trading Forex, slow isn’t a bad thing. In fact, a slower paced style like swing trading gives you more time to make decisions which leads to less stress and anxiety.

So, if you’re looking for a more relaxed way to trade the market, swing trading might be the answer.

– You have a full-time job or school

I wasn’t always a stay at home trader. Having the ability to trade Forex around my work schedule was a huge advantage.

Had I needed to sit in front of my charts all day to watch every tick, it wouldn’t have been possible. This is the kind of freedom swing trading can offer.

You might NOT want to be a Forex swing trader if:

– You’re looking for an action-packed style of trading

There is nothing fast or action-packed about swing trading. It’s a style where the slower-paced, more disciplined traders win.

I will go as far as to say that if your holding period is more than a few days and your trading isn’t boring, you’re doing something wrong.

– You don’t mind making a small amount on each position

As a swing trader, your average profit for a successful trade might be 2% or greater.

Most day traders, on the other hand, make a much smaller amount per profitable trade. They make up for it in volume, but the return per execution is relatively small.

– You can’t stand the idea of holding positions overnight

Most swings last anywhere from a few days to a few weeks. As such, swing traders will find that holding positions overnight is a common occurrence.

If you can’t sleep knowing you have capital at risk or unrealized profit at stake, then swing trading might not be for you.

– You need to know if you’re right or wrong immediately

I have held several positions for over a month. Some have even lasted for two or three months, particularly when I’ve traded a reversal on the weekly time frame.

Longer-term trades such as this require patience. It may take several days, weeks, and sometimes months before you know if your analysis was correct.

That said, trailing your stop loss to lock in some profit along the way does help to relieve most of that pressure.

– You get anxious when trades go against you

In most cases, the market won’t take off in your intended direction right away. Drawdown is something all traders have to deal with regardless of how they approach the markets.

However, drawdown can last longer for a swing trader. It doesn’t mean you stand to lose more money, but positions can remain negative much longer than if you were day trading.

Final Words

Forex swing trading is one of the most popular trading styles around, and for good reason.

It allows for a less stressful trading environment while still producing incredible returns. It’s also great if you have a day job or school to attend.

Having accurate levels is perhaps the most important factor. If you can’t rely on the support and resistance levels on your chart, you won’t be able to trade with confidence.

In my experience, the daily time frame provides the best signals. Just make sure you use New York close charts where each session ends at 5 pm EST. Check with your broker to be sure.

The best way to remove emotions from trading and ensure a rational approach to the markets is to identify exit points in advance. If you wait until you have an open position, it’s too late.

Above all, stay patient. Remember that it only takes one good swing trade each month to make considerable returns.

General FAQ

Swing trading is a style of trading whereby the trader attempts to profit from the price swings in a market. These positions usually remain open for a few days to a few weeks.

Day trading is a style of trading where positions are opened and closed within the same session. Swing trading, on the other hand, uses positions that can remain open for a few days or even weeks.

Most swing traders prefer the daily time frame for its significant price fluctuations and broader swings. However, the weekly and even 4-hour time frames can be used to complement the daily time frame.

Now It’s Your Turn.

Are you ready to start swing trading the Forex market?

If so, you definitely want to download the free Forex swing trading PDF that I just created.

It contains the 6-step process I use. And if you’re unsure whether this style of trading is right for you, it will help with that too.

Click the link below and enter your email to get instant access to the cheat sheet.

Leave a Comment:

100 comments

Great inside, i m practising this strategy lately

It’s a great way to trade just about any market. Let me know if you have questions.

What a great information, it’s a real cátedra. Congratulations

Pleased you enjoyed it, Alfonso. Cheers.

Great post as usual Justin

Please Mr. Justin help me with this Forex trade. I’m a poor guy that just read about Forex trade and I wish to put my little money there maybe can let me make in life too. Kindly help the poor guy for God shake.

I seek your help, be mentor to make it in life. I need money to survive. May God help you too.

Alli Adetayo from Nigeria

Impressive trading style explained wonderfully..

Glad to hear that. Thanks for commenting.

Excellent work. Thank you providing free info.

Anytime, Bedin. Feel free to reach out if you have questions.

Swing trading for life!
I don’t want stress I get enough of that at work.!

Totally with you on that one, Roy!

Hi Roy, it is by far the best approach for a less stressful trading experience. Just my opinion, of course.

Good way of teaching. I would like to make an investment with you if you would like to do it for both of our benefits ensuring slow and steady profits.

Pleased you liked it.

Another helpful article and more confirmation that I am in the right place with Daily Price Action.

Swing trading very much fits around my lifestyle, although this week was the first week I had held a trade for more than a day, which had me checking my charts more often than is healthy!

I much prefer the pace of swing trading the daily charts and the time you get to analyse trades before pulling the trigger.

I still can’t believe how much decent free content you publish, way more than your average expensive course.

Cheers for the help and I’ll see you in the forum.

Great to hear, Dan. The extra time to evaluate setups along with market conditions is one of my favorite aspects of swing trading.

Thanks for sharing. Cheers.

You’re very welcome.

Hi Justin, you are there at it again, what a wonderful expository post.I will start the practice right away because it suits my personality.

Thanks for the kind words, Euphemia. Glad you enjoyed it.

Thank you Justin for your wonderful clear and concise presentation on swing trading. I am an ex trader that needed to get back in the ‘swing” of things and felt it was very difficult to get into since I left.

Not only did I think it was an easy read: clear, concise, simple, no fluff… , but it also gave me confidence in re-understanding the forex market and having a straight line to trying swing trading again possibly along with pre-Elliott Wave theory I learned from an old mentor I had.

5 star rating. Many many thanks with best regards.

You’re welcome, Daniel. Feel free to reach out with any questions as you transition back to the trading lifestyle.

Clear and concise delivery on how to trade using Price Action. Thank you Justin. All the best.

Thanks, David. Always happy to help.

How do i upload a picture here mr…….

Swing-trading with options is more lucrative, but you can’t stay on too long. 1-4 days tops. Less if the option has just a week left. Get a slightly out of the money strike.

Divergence gets you in before the move usually and lack of time gets you out fast.

That’s how 500 bucks becomes 3K in 48 hours.

If you’re risking more bucks then buy options with 4-6 weeks and play the same divergence game. Exit in a week or two if you’re deep in the money.

That’s how 5K turns into 40K in a week.

Put at 30 to 50 % your risk capital.

That’s one inspiring and educational topic ever read ��. Thanks Justin

You’re welcome. Glad to hear that.

Thanks Justin for information .You just make trading simpler for me.I value your input.Keep well!

You’re welcome. I always try to keep things simple. It’s good to hear that it’s working. Cheers.

Great refresher lesson Justin, thanks.

You’re welcome, Vincenzo.

Thank you for all your patient teachings. When it comes to drawing support & resistance levels, how can one utilise the Fibonacci tool? Won’t the Fibonacci levels always be the same as the support & resistance levels?

Danita, the post below will help. Cheers.

awsome post your hellp as a technical expert is valuable to us

if i want to hold position for more than 6 months is it good to use monthly time frame

The holding period won’t necessarily dictate the time frame you use. It comes down to how you define your targets and whether the strategy you’re using works best on the daily, weekly or monthly charts.

Thanks Justin for this free forex education i am better now and i can see the progress, All i need is to join the community

It’s my pleasure. Let me know if you have any questions. Thanks for stopping by.

I used to think swing trading and day trading is one and the same thing,now I know on which side I belong,thanks Jb

Good article Thanks for sharing great information of Forex Swing Trading.

Hi Justin
I have been missing out on profits with my trades by not identifying a target. I have gone trough your Forex Swing Trading lessons which has cleared my mind but what I would like to know is whether I should move my stop to the resistance or support area when the price has moved beyond
Kind Regards
Andre

I like a bit of both swing & action trading can you give more info on 4H swing trading. Since I have been using price action ( which you showed me) my trading has become more stable less losses.
Thanks Justin

You’re welcome. I don’t do too much on the 4-hour charts these days.

Ah, nice article. It improves my confidence in daily price action trading which consist swing trading. Thanks again Sir.

WoW..This is great and awesome work Justin..Patience pays and i believe this trading style fits me perfectly, plus the best things in life are free and you’re not charging anything at all..Thank you very much for this..I’ve been demo-ing and looks great, i just “set it and forget it” its been a week now and i am about $250 in profit on the EURNZD short trade i took on the daily, i mean i couldn’t make that much before through day trading unless i risk by taking multiple multiple orders on one trade but swing trading only one order risking 3% got me up that much and trailed my stop loss and locked in at least $100..February 2020 am officially adopting this trading style and its highly profitable..
Thanks once again Justin.

Greetings guys. I’ve been trading for the past 2 years. its really been a bumpy road since i went the self taught route. i really would love to receive any form of help from someone who has found success in this market. Be it advice, books to read or anything that can help me move forward

Hi Mr Bennett, I’m new. When you say l go to daily frame, all l know there is that the action is shown by one candle or a bar. Please help

You are a great teach, God bless you with more knowledge, looking forward to join the forum

Justin, you always explain these forex concepts with great clarity. Thanks for sharing your knowledge!

Thanks.
As a swing trader can Fibonacci be used to identify the reversals? If yes how do you know when to use Fibonacci and how it works?

Justin valuable information, I’m in the process of training and it’s been almost three years of learning and I’ve spent a few months just dedicated to swing operations and my trading has improved ostensibly, not only for the psychological part but for the different way of seeing the market. I work a very small real account but I hope to increase it in the future.
I have a question in my operation I only look at the daily charts as a reference, I rely on 4H graphics, do you think I’m doing well? or should I get used to handling D.
Thank you for the valuable information you share, see you.
I apologize for the English but I use google translator.

Thanks. This was quite informative. You should write a book with all this info.

if you check the whole site. coach has a wealth of information in how to become a profitable trader.

Thanks i needed a boost i was lacking a little of these

hi justin.I am interested in the Forex swing trading course and i deposited your account for $ 7.but I still did not receive the course.please check it

thank you so much for this priceless information. i just came into learning how to trade forex last week. i will very much appreciate your support any time. God bless

Great post my boss hope one day I will be under your mentorship

Hi
Thanks for the content. I just wanted to ask, in your opinion, is it wise to focus on a few pairs or should i scan as many pairs as possible for set ups?

Yes I also love that question

Hi there.. i would like to be a swing trader

Thank you sir. I like holding trade for some time and with this content, I no it will help me become a better trader and swing trader.

Mr. Bennett i there a way to upload a picture here please……. there’s some chart that i tried to plot s&r, i want you to see if am right or wrong….

Very proud to be part of this noble lessons.

Please may i ask if it will be good using the zigzag indicator on meta trader platform to get the swing high and low.
thanks.

Trade broken to the understanding of a novice. Swing trade will be my course. I really love this Justin

Thank you for this your great heart of giving, and not just giving, but qualitative and insightful giving. I can’t wait to start profiting from these insights. Thank you once again, Justin.

Very well explained and easy to grasp.Good job.

It is great to see someone who is sincere to have put smth up here on swings Only that I practiced same here also but on 15 minutes TF as a small trader so thatif perhaps I happened to be on wrong market it won’t take me much losses and daysor even months before I can know my faith
But the author need to shed more light on entries on swings

Thanks a million for your time and your ideas that are free shared here. You have helped simplified my trading approach as well.

You’re welcome Peter. Glad I could help.

JUSTIN. This is highly appreciated.

It’s my pleasure. Thanks for checking in.

Thank you for the lesson, new to trading and tried a few, I hate scalping been trying swing and failing a times, the lesson helped me a lot. Looks like swing will be great for me.

You’re welcome, Tshepo. Pleased to hear you found it helpful.

thanks a lot my brother Justin,I am willing to learn this style it looks good for me.

Really great article Thank you

This is the first time I understand how trade goes, I love it.

That’s great to hear, Muhammed. Thanks for stopping by.

More benefits on swing trade, 1 spreads will never scared you, 2 commissions too, I pity scalpers��������

True, I’ve tried it all and swing trading fits my personality best. But it is a very personal decision one has to make.

Sorry to ask, but where is the download link? I consider this as one of the best educational forex lessons along with fx leaders. Congrats Justin!

Cheers! I greatly appreciate that. Thanks for commenting.

Thanks soooooo… Much for making Forex trading easy to understand.

You’re welcome, Jane.

I want to start swing trading. You have made it easier to understand and make choice. Please assist me to start trading

Glad to hear that. Feel free to check out the rest of the blog or join the membership site. Cheers.

FOR LAST FEW WEEKS I REGULARLY FOLLOW UR POST…THANKS FOR SHARING UR EXPERIENCES IN SIMPLE WORDS WITH NO COST

Hey Justin,
Thanks a lot for sharing a great and informative article on this topic. As a professional trader, I really appreciate your Idea and off-course it will work rest on the future. And your presentation idea really caught my eyes. I think you will be happy to know that I also have some ideas like yours. If you like to visit my website I will be thankful to you.
Thanks

I am new in Forex Trading, but the way you explain Swing Trading is absolutely amazing and even encouraging to study it more and practice it.

Nice insight. I just like to know if you wait for StopLoss or Target till candle is formed ( like waiting for end of day to trigger stoploss ).

I bumped into your youtube videos last month, and ever since then I have been following you. Thank you for the efforts you put to give us these incredible insights for free. I really appreciate you my mentor!

Man you are a master piece. Excellent Work!! Always stay blessed.

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High Risk Warning: Forex, Futures, and Options trading has large potential rewards, but also large potential risks. The high degree of leverage can work against you as well as for you. You must be aware of the risks of investing in forex, futures, and options and be willing to accept them in order to trade in these markets. Forex trading involves substantial risk of loss and is not suitable for all investors. Please do not trade with borrowed money or money you cannot afford to lose. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and does not constitute investment advice. We will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. Please remember that the past performance of any trading system or methodology is not necessarily indicative of future results.

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