swing trading

Inverted Hammer

Similar to the hanging man, the inverted hammer is a bottom reversal pattern and is best played at swing lows.  This formation is second only to the pin bar in the potential strength and setup of a possible change in trend.  They typically have the following characteristics: The upper shadow should be twice the length [...]

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Hanging Man

This Japanese candlestick formation would possibly be the second most important setup.  It is similar to the pin bar formation but does not offer as strong a signal as a possible change in trend.  The hanging man is a top reversal pattern and as such is best played at swing highs. They typically have the [...]

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Pin Bars

This probably the number one Japanese candlestick formation used by swing traders.  This an extremely powerful setup and if you only learn one price action formation, this should be it.  Pin bars typically have the following characteristics: One shadow will extend out while the other should be very small or non‐existent. The extended shadow should [...]

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Support and Resistance

Support and resistance is probably one of the most widely used concepts in swing trading.  These levels are used heavily by professional traders as points to enter and exit trades.  Support and resistance levels can be major turning points in any market and knowing how to identify them is crucial. Just what are support and [...]

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Pullback Trading & Entries

Once swing traders have confirmed the trend, they are looking to place trades in the direction of the trend.  Can you trade against the trend?  Sure, it can be done but doing so increases the chances that the trade will be a loser instead of a winner.  Follow the smart money and only trade with [...]

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Trend Identification & Trading

When it comes to swing trading, the trend is everything.  NEVER trade against the trend.  Before a swing trader places any trades, they should have always made sure that they have identified the trend and are only trading with the flow of the trend and not against it. Three common methods that swing traders use [...]

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Market Trading Hours

Even though the forex market is open 24 hours a day for 5 days of the week, this doesn’t mean that it is always active enough to trade.  To swing trade, the market must be moving far enough so that you can profit from each of the swings.  There are certain market hours that are [...]

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Stop Loss

A stop loss is absolutely critical in swing trading or any kind of trading.  Sadly this is often ignored.  Where is the best place to place a stop loss order for a swing trader?  What is the best size of a stop loss?  While the exact answers will vary depending on your specific system rules, [...]

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Swing Trading Indicators

Are you looking for the best swing trading indicators?  You might be surprised by just how few indicators banks and other professional traders use.  It is not uncommon to find a bank trader with only one indicator on their chart.  Don’t over complicate your trading by placing multiple indicators on your charts.  Keep it simple. [...]

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Fibonacci Retracement

Fibonacci retracement levels can be extremely powerful and critical for swing trading.  These levels offer excellent entry points for swing traders who are looking to open a trade on a retracement or pullback. There are two kinds of fibonacci levels, retracement and extension.  However, the ones that play a major importance in swing trading are [...]

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