This is a good question how to use swing trading strategies in the Forex market? First what is swing trading? Swing trading is done when you ride a mini trend in the market for a few days. This is much better than trading intraday where you open and close the trade the same day.
The best method to do swing trading in the Forex market is to trade on the daily chart. Trading on a daily chart is much easier than trading on intraday charts where you will get a lot of signals but the probability of these trading signals being false will be comparatively high. Plus you will need to monitor the intraday charts frequently during the day.
But on a daily chart, you only need to take a look once a day. There is not much noise on the daily charts. This means you will be getting fewer false signals making life easier for you. So, this is how you are going to swing trade on the daily charts:
1. Spot a trend. Try to identify it as early as possible. This is essential if you want to make as many pips as possible. Identifying a new trend does not need monitoring the daily charts more than 10 minutes a day.
2. Once you spot a trend, enter it as early as possible before the rest of the crowd. This will ensure that you get maximum number of pips.
3. Once you enter into a trade and get breakeven, replace the stop loss with a trailing stop loss. This way you can continue riding the trend as long as the trend continues. The trailing stop loss will take you out of the…