When we talk about normal swing trading, we know that the traders hold the stocks for 2 to 5 days and then close the transaction. It lies somewhere between day trading and long term investing. Swing trading can be done in forex market as well and it is known as forex swing trading. The same principles of forex market apply to the forex swing trading as well.

Forex swing trading strategies are also similar to strategies which are being used in the normal swing trading. It involves principles finding a suitable entry point after doing the trend analysis, then finding suitable pivot points and lastly find the exit points within a couple of days.

Like in usual swing trading, the trend analysis is done on currency pairs to find a suitable point of entry. One method is to apply 10ma and 30ema moving averages study to a candlestick chart.

Once you find a trend using above technique you find a suitable point of entry. In upward trend the currency will trade above the 10ma, and then swing down into the zone between the 10ma and 30ema. On the other hand, in downward trend, the currency will oscillate below the 10 ma, and swing up into the zone. Do a candlestick analysis and find doji, harami or engulfing pattern to find a suitable entry point.

After you enter into a trade, you need to start looking for an exit point. First of all, put a stop loss based on your risk appetite. Then set a profit target depending upon your own method of forex swing trading. You can use a candlestick analysis, Fibonacci method or any other technique to do that. Once you reach the target, you can sell the currency pair.

Related posts:

1. Swing Trading – Introduction to Swing Trading Basics
2. Forex Trading Strategy – Different forex trading strategies used by forex traders
3. Day Trading for Beginners – Strategies for Day Trading

1. White candlestick – White candlesticks or hollow candlesticks signal uptrend movement. These occur in different lengths; the longer the body, the more significant the price increase.
2. Black candlestick – Black candlesticks or filled candlesticks signal downtrend movement. These occur in different lengths; the longer the body, the more significant the price decrease.
3. Long lower shadow – Long lower shadow gives a bullish signal. The lower wick must be at least the body’s size; the longer the lower wick, the more reliable the signal.
4. Long upper shadow – Long upper shadow gives a bearish signal. The upper wick must be at least the body’s size; the longer the upper wick, the more reliable the signal.
5. Hammer – A hammer shows a bullish pattern during a downtrend. The hammer has long lower wick and small or no body. Shaven head hammer shows a bullish pattern during a downtrend & a bearish pattern during an uptrend since it has no upper wick. The Hanging man hammer candlestick shows bearish pattern during an uptrend. It has long lower wick, small or no body; wick has the multiple length of the body.
6. Inverted hammer – Inverted hammer signals bottom reversal; however confirmation must be obtained from next trade. It may be either a white or black body. Shaven bottom inverted hammer signals bottom reversal, however confirmation must be obtained from next trade. It has no lower wick. Shooting star inverted hammer shows a bearish pattern during an uptrend. It has small body, long upper wick, small or no lower wick.
7. Spinning top white – Spinning top white gives a neutral pattern. It gives a normal view until seen with respect to the other candlestick patterns
8. Spinning top black – Similar to spinning top white pattern and gives neutral pattern but in black candlestick. Again becomes meaningful when sees in combination with other candlestick patterns
9. Doji – Doji is a neutral pattern with no body and only shadows, meaningful in combination with other candlestick patterns
10. Long legged doji – This is a type of DOJI but have long shadows. It signals a top reversal
11. Dragonfly doji – As in a normal Doji, there is no body and a Dragonfly Doji signals trend reversal since it has no upper wick and long lower wick.
12. Gravestone doji – Opposite to Dragonfly doji and signals trend reversal. It has no lower wick and long upper wick
13. Marubozu white – Marubozu denotes dominant bullish trades and continued bullish trend. It has no upper or no lower wick.
14. Marubozu black – Marubozu black denotes dominant bearish trades and continued bearish trend. It has no upper or no lower wick.

Related posts:

1. Candlestick Stock Chart Analysis – Introduction
2. MACD technical analysis
3. Technical analysis of stocks