25 May 3 Proven Swing Trading Strategies
Swing trading refers to the trading on the basis of fluctuations or swings in the market. So what is swing? A swing is depreciation or appreciation in the value of a currency pair in the market. Simply put, swing is a upward or downward Trend in the value of something.
The best way to profit from swing trading is by exiting before the opposing pressure sets in. Typically, opposing pressure refers to traders who are trying to sell their stock, currency pair etc. So it is best to exit before a down swing, or enter at an upswing. So keeping this core idea in mind, here are 3 swing trading strategies for swing trading.
Stuck In A Box
This is usually done when the prices of the stock or currency pair is stuck inside a range. Here, what you can do is, let the price fall below the lowest point. This way, after sometime, the trend will start to reject the lower prices. This rejecting trend of lower prices will increase the price of the stock or currency pair and you can exit at a high point. As a swing trader, the aim is to exit before a downtrend, and hence it is important to review previous similar data. If previous data shows resistance, it is best to exit at the highest point achievable.
Catch The Wave
This is generally used when the market is on an upswing or an uptrend. Again, the idea is to ride the wave and exit before the opposing pressure sets in. An upswing has 2 portions: a small wave of depreciation followed by a long wave of upswing. It is best to exit before the upswing at a particular stage succumbs to traders who are looking to sell (the opposition pressure).
Fade The Move
This is usually a riskier way to go about swing trading, but it is profitable if you know what you are doing. This is also done on an upswing that can drastically contrast and fluctuate and therefore a riskier path is better. Fluctuations are difficult to predict, but it is possible to do so with the help of previous charts and graphs. This can really up your chances of exiting right before traders decide to sell. Since the idea is to fade before the upswing, it is one of the best ideas to go for in a fluctuating swing trade.