♞ 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, typically targeting profits of 200–500 pips per trade. Swing traders usually aim for a profit/loss ratio greater than 2, often exceeding 3.
🛠 Swing-Trading Strategy Characteristics
Since swing traders remain in the market overnight, they must take swap charges from their broker very seriously. Swap fees are often more important than the spreads between ask and bid for this trading style. Additionally, swing traders need to consider upcoming news events carefully, as staying in the market for 4–5 days exposes them to multiple news releases that can significantly impact market conditions.
■ Weekly Trades: 1 - 3 trades per week
■ Profit/Loss Ratio: 2.5 – 5.0
■ Leverage: 1:3 to 1:10
■ Spreads: not very important 1 - 10 pips
■ Slippage: irrelevant
■ Overnight Charges: Very Crucial (choose brokers offering the best terms)
■ Upcoming News: Very important
♔ 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 |
|
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 |
|
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 |
◙ Swing-Trading Strategies
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🔗 READ MORE | » Introduction to Trading Strategies | |||
♞ DAY-TRADE STRATEGIES | » Falsebreak Candle | » Bollinger-RSI | » Stochastic Day-Trade | » Breakout Strategy |
♚ SWING-TRADE STRATEGIES | » Riding the Trend | » Moving Envelopes | » MACD Swing | |
♜ SCALPING STRATEGIES | » Stochastic Scalper | » Bollinger-RSI Scalping | » Hit-Run Trading | |
♟ STRATEGIES FOR BEGINNERS | » News-Trading | » Follow-The-Trend | » Support and Resistance | » Fibonacci Retracements |
» Stochastics Trading | » Chart Patterns | |||
💱 MARKET CORRELATIONS | » US Yields and USDCHF | » Crude Oil and Forex | » USDJPY and US Stock Indices | » AUD and Gold Price Correlation |