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Respected Contributor
Posts: 1,879
Registered: ‎10-03-2016

Technical Analysis

Very good educational piece on using Inside Bars for swing trade entries.

 

 http://www.newtraderu.com/2017/02/06/candlestick-inside-bar-swing-trading/

 

swing1.PNG

 

 

*** Intraday Price Action Scalping on FX Majors ***
Contributor of the Month
Posts: 489
Registered: ‎24-07-2017

Re: Technical Analysis

A lot of people do not really understand swing trading. In simplistic terms someone who day trades would enter a position at the start of the day and close it by the end of the day. In swing trading a position can be open several days and even a couple of weeks. I personally follow a trend trading perspective. I see swing trading in terms of length of time a position is held as somewhere in between a day trader and a trend trader. It is suggested that large caps are most suited to swing trading. I thing swing traders look to maximise profits in a shorter timescale than say a trend trader and they will also minimise losses as will exit far quicker too.

 

I think it is important to establish what one is going to swing trade first and the methodology behind how to select the swing trades.

Respected Contributor
Posts: 1,879
Registered: ‎10-03-2016

Re: Technical Analysis

Hi @TrendFollower,  are you sure swing trading is not just about catching the 'swing', no matter the time frame whether it be 1 hour or 1 month, or whether it be based on Elliott wave ABC, or even just 'buy the dip'. As an intraday trader I am always looking for swings, it is the rhythm of the auction.

 

There are only trend followers (as am I) or reversal (counter trend) traders who are looking at predefined levels for price to reverse at, but trend followers are by far the majority.

 

The interesting point of the blog was drawing attention to a potential price action signalling to a turn of swing and entry to join a continuation with trend.

 

The inside bars show indecision similar to a doji but the twin tails show a real attempt to drive to new direction, if that tight tight grouping of price action (in that particular situation) is overwhelmed (by bulls or bears) it is a good indication to the direction of next leg. 

 

I was happy to post it as I recognised it to have validity based on my own experience and is well worth to experimenting with by traders on all time frames. 

*** Intraday Price Action Scalping on FX Majors ***
Contributor of the Month
Posts: 489
Registered: ‎24-07-2017

Re: Technical Analysis

I am only basing my comments on what I have read. Generally speaking 'Swing Traders' would hold a position anywhere from two days to say a couple of weeks. It is rare that a 'Swing Trader' would hold a position for a month, several months or even a year. If there are then these would be in the minority and would be extreme examples.

 

I can understand as an intraday trader yourself why you would be looking for swings. But intraday traders do have time frames so it does matter.

 

You can even build a time frame strategy built into your trading plan!

Respected Contributor
Posts: 1,879
Registered: ‎10-03-2016

Re: Technical Analysis

Fair enough, I think essentially we all trade the same way which ever time frame you choose. Investors buy and hold but traders buy and sell and so would aim to buy low and sell high, during a trend that means taking advantage of the down swings in order to ride the upswings but each time frame has it's own rhythm within the large scale swings that can be seen on a monthly chart. The time frame a trader uses depends very much on circumstance and preference.

 

Counter trend traders are also trying to buy low and sell high by using higher time frames to identify potential turn points that have been used in the past by institutional traders and where unfilled orders may still exist, a large clump of waiting orders on a price ladder is support or resistance.

 

For any new traders reading, this is an interesting piece on choosing which time frame suits best, 

 

https://www.tradeciety.com/best-timeframe-trading/

 

 

 

 

*** Intraday Price Action Scalping on FX Majors ***
Respected Contributor
Posts: 1,879
Registered: ‎10-03-2016

Re: Technical Analysis

New video explaining the 'outside candle' strategy with reference to the DXY which posted one on the daily chart on Friday.

 

https://www.youtube.com/watch?v=s0wMNak44PQ

 

out1.PNG 

*** Intraday Price Action Scalping on FX Majors ***