Swing Traders are among the most profitable non-professional Forex traders

Introduction to Swing-Trading Strategies

Swing Traders are among the most profitable non-professional Forex traders. Swing trading involves opening and closing positions that last from 2 to 5 days and usually by targeting profits of 200-500 pips per trade. Swing Traders use Profit/Loss ratio more than 2 and usually more than 3.

Swing-Trading Strategy Characteristics

As swing traders remain in the market overnight they must take account very seriously the SWAP charges paid to their broker. The SWAP charges for this trading style is even more important than the spreads between ask and bid. Furthermore, swing traders must take account of the upcoming news as when you stay in the market for 4-5 days you are exposed in tens of news and updates that can really change any current market conditions.

■ Weekly Trades: 1 - 3 trades per week

■ Profit/Loss Ratio: 2.5 – 5.0

■ Leverage: 1:20 to 1:50

■ Spreads: not very important 1 - 10 pips

■ Slippage: irrelevant

■ Overnight Charges: Very Crucial (choose brokers offering the best terms)

■ Upcoming News: Very important

Table: List of Swing-Trading Strategies

TRADING STRATEGIES

ASSET AND TIMEFRAME

INDICATORS AND SETUP

TAKE PROFIT AND STOP-LOSS

MORE INFO

TRADING THE MOVING ENVELOPE

■ H1 timeframe (1-Hour)

■ All Forex Majors

■ Metals and Energy

■ Stocks & Indices

Two SMA:

1. SMA-1 (9):

2. SMA-2 (21)

ADX Settings

Default settings: (ADX 14)

■ Take Profit:

240-300 pips

■ Stop-Loss:

80-100 pips

■ Profit/Loss Ratio: 3

► Trading the Moving Envelope Strategy

MACD SWINGER STRATEGY

■ H4 timeframe (4-Hour)

■ All Forex Majors

■ Metals and Energy

■ Stocks & Indices

MACD Settings

The default settings

Note: You can alternatively combine MACD with RSI or Stochastic

■ Take Profit:

300-400 pips

■ Stop-Loss:

150-200 pips

■ Profit/Loss Ratio: 2

► MACD Swinger Trading Strategy

RIDING THE TREND STRATEGY

■ H1 timeframe (1-Hour)

■ All Forex Majors

■ Metals and Energy

■ Stocks & Indices

Determining the Trend

Using the simplest definition of trend formation.

Stochastic

Setting Stochastic at (12,3,3)

■ Take Profit:

pips 100 pips

■ Stop-Loss:

Pips 40-50 pips

 

■ Profit/Loss Ratio: 2

► Riding the Trend Trading Strategy

 

 

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STRATEGIES: ► DAY-TRADE | ► SWING-TRADE | ► SCALPING STRATEGY | ► BINARY STRATEGIES

FOREX RATINGS: ► DIRECTORY | ► TRADE SPREADS | ► FOREX REBATES | ► FOREX SCALPING | ► SWAP RATES | ► FUNDS SAFETY

 

Swing-Trading Strategies

ForexExperts.net ©

RIDING THE TREND TRADING STRATEGY

"Following the master trend is the wisest strategy either when you are a Day-Trader or a Swing-Trader"


TRADING STRATEGY

Style: Swing Trade Strategy

Name: Riding the Trend Trading Strategy

FINANCIAL ASSETS

Forex Majors | Metals and Energy | Stocks | Indices



TIMEFRAME

■ H1 timeframe (1-Hour)



INDICATORS & SETUP

This strategy is applied using a simple model of determining the trend and Stochastic.

■ Determining the Trend

In order to determine the trend we use the simplest definition of trend formation.

Rising Trend:

A Trend is rising when a local High is higher than the previous High and at the same time the recent Low is Higher than the previous Low.

Falling Trend:

A Trend is falling when a Local Low is lower than the previous Low and at the same time the recent High was lower than the previous High.

■ Stochastic

We set the Stochastic at:

%K period = 12, %D period = 3, Slowing = 3

Note that the standard settings are (14,3,3)



TRADING SIGNALS

This is how you may implement the Riding-the-Trend Strategy

■ (↑) Long Trades

1. Identify a new Uptrend using the simple definition mentioned before.

“The New High is Higher than the Previous High and the Recent Low is Higher than the Previous Low”

2. Confirm that Stochastic is recovering from the oversold levels of 20 and enter a Long Trade.

■ (↓) Short Trades

1. Identify a new Downtrend using the simple definition mentioned before.

“The New Low is lower than the Previous Low and the Recent High is Lower than the Previous High”

2. Confirm that Stochastic is falling from the overbought levels of 80 and enter a Short Trade.



TRADING ORDERS

Take Profit: 100 pips | ■ Stop-Loss: 40-50 pips | ■ Profit/Loss Ratio: 2


CHART: Riding the Trend Strategy

Following the master trend is the wisest strategy either when you are a Day-Trader or a Swing-Trader


 

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FIND ALSO: ► EA BUILDER TESTER | ► GET STARTED WITH FOREX | ► TRADE SYSTEMS

STRATEGIES: ► DAY-TRADE | ► SWING-TRADE | ► SCALPING STRATEGY | ► BINARY STRATEGIES

FOREX RATINGS: ► DIRECTORY | ► TRADE SPREADS | ► FOREX REBATES | ► FOREX SCALPING | ► SWAP RATES | ► FUNDS SAFETY

 

Riding the Trend Trading Strategy

ForexExperts.net ©

THE MOVING ENVELOPES TRADING STRATEGY

"Moving Averages can be a great tool for determining the master trend but also to signal trades by using the Moving Average Envelopes"


TRADING STRATEGY

Style: Swing Trading Strategy

Name: Trading the Moving Envelopes Strategy

FINANCIAL ASSETS

Forex Majors | Metals and Energy | Stocks | Indices



TIMEFRAME

■ H1 timeframe (1-Hour)



INDICATORS & SETUP

This strategy is applied using two Moving Averages and the ADX

In order to create the envelope, you need two simple moving averages (SMA). Any signal generated by the SMAs is confirmed using the Average Directional Movement Index (ADX)

1. Two SMAs (Two Simple Moving Averages)

SMA-1 (fast): choose 9 periods

SMA-2 (slow): choose 21 periods

2. ADX

ADX Settings

2. Average Directional Movement Index with Meta Trader 4 default

setting (ADX 14). A level of 40 is added.



TRADING SIGNALS

This is how you may implement the Trading the Moving Envelopes Strategy

■ (↑) Long Trades

If the fast SMA (9 periods) crosses above the slow SMA (21 periods) you get a Buy signal. Confirm this signal with a falling ADX. A falling ADX indicates that the market volatility is falling and that may be good news for an upcoming bullish market.

■ (↓) Short Trades

If the slow SMA (21 periods) crosses above the fast SMA (9 periods) you get a Sell signal. Confirm this signal with a rising ADX. A rising ADX means that the market volatility is rising.



TRADING ORDERS

Take Profit: 240-300 pips | ■ Stop-Loss: 80-100 pips | ■ Profit/Loss Ratio: 3

 


CHART: MOVING ENVELOPES (EURUSD)

Moving Averages can be a great tool for determining the master trend but also to signal trades by using the Moving Average Envelopes

 


 

 

FIND ALSO: ► EA BUILDER TESTER | ► GET STARTED WITH FOREX | ► TRADE SYSTEMS

STRATEGIES: ► DAY-TRADE | ► SWING-TRADE | ► SCALPING STRATEGY | ► BINARY STRATEGIES

FOREX RATINGS: ► DIRECTORY | ► TRADE SPREADS | ► FOREX REBATES | ► FOREX SCALPING | ► SWAP RATES | ► FUNDS SAFETY

 

Trading the Moving Envelopes Trading Strategy

ForexExperts.net ©

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