Forex swing trading is one of my favourite trading method as it happens so frequently which gives all traders a lot of opportunity to trade it.
However there are times where the swings are more vigorous and this is when you can make more money from. Typically the forex market moves in waves and these waves are what is known as swings. You may be thinking that there are so many swings in a chart and is it possible to trade them all.
The answer is NO. If you take a close look at the swings, you will find that most of them do not move by a lot of pips. Therefore today I will be revealing to you the time that I often trade forex swing and it is also the time where there are bigger movement in price which makes it more profitable to trade.
First of all, let me go through the definition of swings for those of you who are new in this field. Basically a swing is made up of a V or N shape and it is actually formed by a reversal or retracement in price movement.
The best time to trade forex swing is during London Open and New York Open as these are the times that have the most violent swing.
Forex Indicators Required To Trade Forex Swing:
Here are How You Can Trade Forex Swing:
1) Time To Do Forex Technical Analysis: As the swing often occurs at London Open or New York Open, you should be doing your technical analysis 1 hour before the opening time. This can gives you ample time to analyze the time and figure out all the major supports and resistances.
2) Trend Line: To trade forex swing, you should be waiting for a trend line break to confirm the reversal or retracement of the price which makes up the swing. Take note that you should never enter your trade before a trend line break occur as you may be stopped out of your position if the price did not break the line but end up being repel by it.
3) Check Your Oscillator: This is the last step to check before you enter your trade. If you are looking to go LONG, you should check the oscillator to see if there are oversold and if you are looking to go SHORT, you should see if the oscillator is overbought. This can gives you additional chance of having a winning trade.
The above are how I trade forex swing and you can try them out to see if it works for you as well.
Note to Readers:
Do note that the above strategy is a general fx strategy that has not been fine tuned. In order for you to trade with it, please fine it tune on a demo account. If you do not know how to fine tune a strategy, please read the below
For those of you who are totally new to forex trading, I will suggest that you read through this blog post that I have written for beginners