Tuesday, November 5, 2013

Swing Trading Strategy

In this post, I like to talk about Swing Trading Strategy that I found and used in my own trading activities. I like this swing trading system because this trading strategy is very accurate if you used it properly. The opportunities to get profits or money using this swing trading system might not be big but you will find this system can give you short trading time to get benefits or money and you can continue to the next trading right away. This swing trading strategy gives good stop loss level just below the previous peak or valley of the last market's swing. With this stop loss level you can have a strong stop loss level and low risk ratio. 
Swing Trading Strategy
So let's start discuss this trading system. 
Swing trading strategy, this trading system uses 4 Forex indicators: 
- RSI Relative Strength Index indicator
- 5 Simple Moving Average indicator
- 10 Simple Moving Average indicator
- 20 Simple Moving Average indicator 

Buy Trading rules

- When the market price moves above 200 moving average indicator, then we can assume the market price is in bullish trend. 
- The reversal movement hits the 10 Moving Average indicator 
- The Relative Strength index trades below 10 
- Open a trading position on the close of the candlestick 
- Exit your trading position at the end of the day candlestick 
- Set your stop loss level under the low of the day candlestick 

Sell Trading rules
- When the market price moves below 200 moving average indicator, then we can assume the market price is in bearish trend
- The reversal movement hits the 20 Moving Average Forex indicator
- The RSI Reversal movement index RSI trades above 90
- Open trading position at the end of the day candlestick 
- Set your stop loss level under the low of the day candlestick

No comments:

Post a Comment