Chapter 8

Strategies for Swing Traders

First published: 02 January 2012

Summary

This chapter covers five strategies for swing traders. A swing trader's trading strategy is considered fairly midterm, with several trading opportunities in a week. Depending on the currency pair, the profit potential per trade for swing traders can range from 50 pips to 150 pips or more. With trades having profits as high as the daily volatility, it is normal for these trades to take more than a day to exit. Most swing trading strategies use indicators to pinpoint entries. The five strategies suitable for all swing traders are trend rider, trend bouncer, fifth element, power ranger and the pendulum. The techniques are developed for use on middle time frames, such as the hourly (H1) and the 4-hourly (H4) charts. Due to the strategies’ time frame, swing traders are presented with trading opportunities that most likely last more than a day but exit within a week.

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