Forex Swing Trading Strategy - Make Big FX Profits in 30 Minutes a Day!

If you want to make big Forex profits, there is no better way to do so than to use a swing trading strategy and in this article, we will explain how and why the strategy works and how you can use it, to make big gains.

The logic behind Forex swing trading is simple - Traders are emotional and the emotions of greed and fear push prices to far to the upside or downside. You can see this happen on any Forex chart and when you see a short, sharp price spike it never lasts for long and prices soon come back to fair value.

As a swing trader you want to sell into greed and buy into fear and now we will look at a Forex trading strategy which can do this and make money. In our example below, we will look at how to sell into greed and the same logic of course works, if you want to buy into fear.

Just follow this simple check list to spot opportunities and to enter them market.

- Look for a short term price spike accompanied by high volatility.

- Look to see how overbought the market is and for this you will need some momentum indicators. There are many but the best in my view are - the RSI, stochastic, MACD and ADX indicators. These indicators are all visual and all easy to learn and will tell you how overbought the market is.

- When the indicator is overbought, look for a level of resistance above the price and wait for a turn down in the indicator, as prices are still rising. This divergence in momentum from price warns the trend could be about to end and enter your trading signal.

- Keep in mind the more overbought the momentum indicator is when it turns down, the better the odds of the trade being successful are, so be patient and wait for these high odds trades.

- Your stop goes above resistance above the price and you then need to pick a target just above support to get out the market - You must have a target above support because you want to be out of the market before the support is tested, just in case prices bounce back up and eat your profit.

- You have a stop in the market for protection and hopefully your target is hit and you can then look for the next opportunity.

The above is a simple Forex trading strategy and it's one anyone can learn and make money with, in around 30 minutes a day.



SOURCE:
http://ezinearticles.com/?Forex-Swing-Trading-Strategy---Make-Big-FX-Profits-in-30-Minutes-a-Day!&id=4771203