A swing trader usually has his trades open from days to weeks. In the world of foreign exchange where everything can happen really fast, it’s quite risky to have an open position for that long, thus you’ll need reliable swing trading strategies. These strategies can be applied by all traders, but it’ll be easier if they match your trading style.

Figuring out the Trend

The goal of swing trading is entering trades in the direction of a major trend. Hence, identifying the trend is definitely an essential initial step to master for a swing trader. The earlier you can discover the trend, the better your chance to generate massive profits.

However, you can't just concentrate on identifying treds because you have to keep an eye on whipsaws (a condition where a sharp movement followed by sharp reversal) too. If you can’t avoid whipsaw, then you’ll be faked out many times. These are several common methods to discover trends:

• Utilizing indicators: the most commonly used indicators are Moving Averages and Relative Strength Index.

• Price Action Trend

• Pivot Point Trend

I would suggest using 15 minutes and 4 hours charts for this.

Look Forward To Pullback

Once you discover the main trend, don’t rush and place your order. Look forward to some type of pullback first to secure a beneficial entry point. By waiting for a good price level before truly stepping into the market, you’ll get in at a great price and have better opportunity to score profitable trades.

Stop Loss Order

Any good trader applies strict risk management and stop loss is one of it. For stop loss, just use the latest swing high or swing low. Ensure you place your fund in a reliable broker that will not ignore your stop loss.

Closing the Position

The easiest way is to shoot for the same amount of the pips you are risking. Example: if your stop loss is twenty pips below your entry point, then simply set twenty pips above your entry point as the exit point (take profit order). Of course, you could aim above the quantity of pips you risk; it’s completely up to you.

This is merely one example since there are a lot of swing trading strategies around. A few of them might require you to learn more advanced strategies or making use of more sophisticated software; nonetheless, if you’re still learning, it is advisable to stick to one currency pair and get used to it. Also, know the best time to trade for that particular currency pair.

You’ll find thousands of methods and strategies, but the point in swing trading strategies is just identifying a trend and follows it. As simple as that. The difference is just in how it is being applied, so you’ll want a strategy that matches your trading style.