When it comes to swing trading its not rocket science. It's more of a patience thing.
Swing trading refers to a trader holding trades for at least 3 days or more. The question is how does the trader know that he or she should swing trade?
Well, first, you have to want to hold a trade, right? Secondly, you have to want to catch a big gain of pips. There are traders who believe that you can be greedy in the market if you hold positions. If that were the case then what would the stock market be for? That's another conversation for later. Back to Forex trading for a bit.
Lastly, you have to understand the market moves in big movement and its there for the taking.
Let's talk about one of my favorite trade setups using trend and trend lines. When the market is trending I closely await for trend structure to break which is known as a reversal. In the picture below, you will find a recent example of a break of trend structure.
Price was pushing up making higher highs and higher lows. When the market broke the ascending trend line, price pushed down and created a lower low. From here, you the trade should expect a lower high to be made, right?
If you said right, then you are correct.That is exactly what price did. I'd be expecting a new low to be made and a huge amount of pips to be gained.
Watch the video below as I break down this pair further and talk about the next move we could possibly expect out of this pair. Don't forget to subscribe.
Comment below, what is your favorite trade setup?