As we promised in the previous Swing Trading article (link), it is time to put everything on paper and start making some money. In this article we will show you a Swing Trading strategy you can use to make pips in trading.
The best trading strategy for beginners relies on a market that is trending. There are swing trading strategies for non-trending markets but for this one, we want to take a trade that might be a larger potential swing trade.
We can use a swing trading structure to determine the trend but for a quick trend measurement, we use the Simple moving average in two ways:
For this swing trading price action system, we will use a very simple determination for the trend direction and that will come via the relationship between price and the moving average.
The slope is also important. We want to see a clear slope. If the SMA is pointing upwards, the trend is bullish. If the SMA is pointing downwards, the trend is bearish.
The RSI settings should be set to 10 and we use the 50 level for the swing strategy. The purpose of the RSI in this trading strategy is to confirm the strength of the trend. You might be asking - what is the best time frame for swing trading? The answer is the 4h time frame. We swing trade on the 4h time frame.
Time frame: 4h
Pairs: All pairs - Beginners should focus on EUR/USD, GBP/USD, USD/CHF and AUD/USD
Buy trade example:
Sell trade example:
If you want to successfully swing trade it may be useful to open a demo account first. Once you master this Swing strategy for beginners you might be able to make real money in the market. In case you still lack confidence in trading, you can also profit from the Copy Trading service:
Stay tuned! Follow the updates in our Education section.
This material does not contain and should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments. Before making any investment decisions, you should seek advice from independent financial advisors to ensure you understand the risks.