The key point for swing trading is finding markets that are stuck in the sideways trading range (Also called a jam area), or on a channel that is rising or falling on the graph (remember, channel!). When observing from a chart, traders must be able to distinguish some clear support and resistance levels which are the boundaries of the congestion area or channel.
When market prices approach the support or resistance limits, traders will set a position: long if the price moves lower and approaches the support limit, and is short if the price moves higher and towards the resistance limit. It sounds simple, but remember, trading contains many surprises. Prices may be able to break the support or resistance limits at any time, therefore skills to respond quickly, or good money management strategies are always important characteristics of an experienced trader. Swing trading techniques can be used in any chart time chart - daily, weekly, monthly, and intra-day graph. However, the most popular time period for swing trading is the daily bar chart.
Note that the strength of support and obstacles at the boundary are usually determined by the number of times the market has rotated at the limit. The rule is that the more time the market has reached the limit of support or resistance, and then reverses direction, the stronger the limit. It can also be said that the longer the channel continues, the more reliable the channel is. Thus, a trader wants to find an established trading channel or range to try to shake up the trade.
Exceptions to this are markets that have been in the trading range but are bound by one or two strong surge moves, which also show strong support or resistance limits. That means some areas of congestion that might offer good swing trading opportunities do not require multiple pivot points. In fact, one or two surges will be determined to be potential pivot areas for the market.
Swing traders must still use tight protection. As I mentioned, penetration can occur anytime, maybe because of poor political news, etc ... A good money management strategy will continue traders get out of trouble. A good area to place protective stoppages is only outside support or resistance limits that form trade channels or congestion areas. For example, if the market in the trading channel approaches the channel's upper border, the swing trader will make a short position and want to place the protection purchase to stop just above the resistance level which functions as the upper limit of the trading channel. Conversely, if the market approaches the lower limit, the swing trader will build a long position and place the sales of the protector to stop just above the support level.
TopAsiaFx.com helps you compare and choose your preferred Forex Broker. We suggest keeping the following checklist in mind when making your decision:
- Is the Forex Broker regulated?
- Account Details: Ideally, your broker should offer either a selection of account types or some element of customizability. Competitive spreads and easy deposits/withdrawals are good indicators too.
- Number of Currency Pairs offered: The variety of currency pairs on offer, as well as the quantity, should be considered (the more of both, the better).
- Availability of Customer Service.
- Quality of the Trading Platform: look for a platform that is easy to use, straightforward and offers a collection of technical and analytical tools to enhance your trading experience.
Rank Broker Name Special Offer Minimum Deposit Spread User Score Maximum Leverage Regulation Start Trading 1 NordFX 55% Deposit Bonus $10 0.0 Pips 96 1:1000 VFSC Open Account 2 SGT Markets Refer a friend $10 $500 0.0 95 1:400 IFSC Open Account 3 OctaFX 50% Deposit Bonus $100 0.4 94 1:500 IBC Open Account 4 Exness No $1 0.1 93 1:2000 FCA,CySEC,IBC Open Account 5 IC Markets No $200 0.0 92 1:500 ASIC Open Account 6 Tickmill $30 Welcome Account $100 0.0 91 1:500 FSA,FCA Open Account 7 Axiory $50 Deposit Bonus $200 0.0 90 1:400 IFSC Open Account 8 Justforex 100% Deposit Bonus $1 0.0 89 1:3000 IFSC Open Account 9 ThinkMarkets No $250 0.4 88 1:400 ASIC,FCA Open Account 10 XM $30 Welcome Account $5 0.0 87 1:888 ASIC,FCA,IFSC Open Account 11 FBS $50 Welcome Account $1 0.0 86 1:3000 IFSC Open Account 12 HotForex No $5 0.0 85 1:1000 INC Open Account
TopAsiaFx.com helps you compare and choose your preferred Forex Broker. We suggest keeping the following checklist in mind when making your decision:
| Rank | Broker Name | Special Offer | Minimum Deposit | Spread | User Score | Maximum Leverage | Regulation | Start Trading |
| 1 | NordFX | 55% Deposit Bonus | $10 | 0.0 Pips | 96 | 1:1000 | VFSC | Open Account |
| 2 | SGT Markets | Refer a friend $10 | $500 | 0.0 | 95 | 1:400 | IFSC | Open Account |
| 3 | OctaFX | 50% Deposit Bonus | $100 | 0.4 | 94 | 1:500 | IBC | Open Account |
| 4 | Exness | No | $1 | 0.1 | 93 | 1:2000 | FCA,CySEC,IBC | Open Account |
| 5 | IC Markets | No | $200 | 0.0 | 92 | 1:500 | ASIC | Open Account |
| 6 | Tickmill | $30 Welcome Account | $100 | 0.0 | 91 | 1:500 | FSA,FCA | Open Account |
| 7 | Axiory | $50 Deposit Bonus | $200 | 0.0 | 90 | 1:400 | IFSC | Open Account |
| 8 | Justforex | 100% Deposit Bonus | $1 | 0.0 | 89 | 1:3000 | IFSC | Open Account |
| 9 | ThinkMarkets | No | $250 | 0.4 | 88 | 1:400 | ASIC,FCA | Open Account |
| 10 | XM | $30 Welcome Account | $5 | 0.0 | 87 | 1:888 | ASIC,FCA,IFSC | Open Account |
| 11 | FBS | $50 Welcome Account | $1 | 0.0 | 86 | 1:3000 | IFSC | Open Account |
| 12 | HotForex | No | $5 | 0.0 | 85 | 1:1000 | INC | Open Account |
No comments:
Post a Comment