The above was an example of a sell trade Use the same rules but in reverse for a BUY trade. Dont make the mistake of searching for setups. If you cant rely on the support and resistance levels on your chart, you wont be able to trade with confidence. You might not catch the entire swing, and thats okay. Step #4: With we hide our Protective Stop Loss above the Breakout Candle The breakout candle has a lot of significance because weve used it in our candlestick based entry method. Is Swing Trading Right for You? Another trader of the same style may use a 5 and 10 simple moving average with a relative strength index. Even if we win only 40 of our trades well be profitable using this approach. Then in Step 3, you learned to evaluate the markets momentum. (Note: pips values vary when the USD isnt the second currency listed in the pair.
If you want to know how to draw support and resistance levels, see this post. You cant give up your World of Warcraft raiding sessions. 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. Please make the appropriate adjustment for your own currency if required. The first rule is to define a profit target and a stop loss level. Finding a profitable style has more to do with your personality and preferences than you may know. This time around, were going to outline a simple swing trading strategy that is similar to what Jesse Livermore used to trade.
Swing trading forex strategies