# Swing trading



## pharaoh (21 September 2006)

Can someone give me a simple english run down on this system?
I have tried to make sense of the net tutotials or explanations, but it's all greek to me   

I am really struggling to get my head around TA, and just need a few basics to get me going, as I am now dabbling in trading currencies.

Cheers


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## swingstar (21 September 2006)

Swing trading is just short-term trading. A swing trader will hold for a few days till a few weeks, whereas day traders don't hold any overnight positions, and position traders can hold for months and even years. 

There are profitable traders doing all, so what you decide to do needs to fit your personality and lifestyle.


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## pharaoh (21 September 2006)

Ah ok thanks swingstar

What systems do you use then?
Do you trade forex?

I made my first trade on forex successful today, by just staring at the chart and thinking, well, it went up a few days ago, so looks like it will again...

But, need a bit more and want to see what people are using, and what works...

Cheers


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## Milk Man (21 September 2006)

Hey Pharoah,

Here is a basic example of a swing trade. Generally this is referred to as a 1-2-3 pattern. Just wait for a rally in a downtrend (or vice-versa) and then buy as it continues on its merry way. When I trade these setups I use profit targets, there are many other exit methods out there though. I just use what I know works for me at the moment, plus I like the idea of selling into strength. WayneL is an avid swing trader but I don't know if he does forex. Shouldn't be too much different though generally.

Cheers.


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## wayneL (21 September 2006)

There are several interpretations as to what "swing trading" is.

On the chart below I've marked 4 clear swings in price action. My interpretation of swing trading is to attempt to capture these swings in price movement.

There are various analysis methods for doing this. Hindsite is the easiest one, but any of the other models (fib retracement/extentions, oscillators, MA's, Gann, Elliott etc) have a higher chance of turning an actual profit.  

Cheers

<edit> I was typing this when MM posted. But you get the general idea


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## swingstar (21 September 2006)

pharaoh said:
			
		

> Ah ok thanks swingstar
> 
> What systems do you use then?



I use some chart patterns (ones that I can associate with and can justify a reason why there may be heavy buying or selling if this or that happens, not simply an ol' pattern pulled out of someone's ar$e) as well as volume and some indicators (I like divergence coupled with such patterns). I also have a slight leaning towards EW, although I'm by no means an expert. I subscribe to EWI reports to see how they compare to my analysis. I wouldn't trade on EW alone, but I like having an idea of what wave I may be sitting in and possible turning points. I also want to look into Gann in future. 



> Do you trade forex?



Only ASX options (utilising what I currently know) and CFDs (sometimes) currently. 



> I made my first trade on forex successful today, by just staring at the chart and thinking, well, it went up a few days ago, so looks like it will again...
> 
> But, need a bit more and want to see what people are using, and what works...



There's been a few lengthy threads on TA. Magdoran has referenced them a few times, so might want to search through his posts.

BTW, my swing trading definition probably isn't fully correct. I would go one step further as Wayne has and say swing trading involves directional movement, not just short-term trading. I'm not too hung up on definitions though. I've scalped the SPI in the past (and hated it!!) as well as sold options into consolidation (non-directional), so I'm aiming towards a system (or knowledge) that'll allow me to trade with the conditions, and it may even involve long-term position trading (ala Nick Radge and tech/a).


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## Milk Man (21 September 2006)

Heres some good video's on forex trading by John Carter:

www.tradethemarkets.com/video/gain11102005/
www.tradethemarkets.com/video/gain1115/

Just click the biggest file in the folder  .

(They are quite lengthy.....)


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## tech/a (21 September 2006)

Kagi (Software Metastock)
CBA and ABC which is an old chart example I used years ago in a discussion.


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## pharaoh (21 September 2006)

Thanks guys
Thats great, hopefully this info helps others reading this, not just myself

Will post questions as I come across them but try not to make them stupid ones
Last 2 nights in bed 2am cos of forex, addictive stuff


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## Gringotts Bank (12 April 2017)

The characteristics of the mid point of a swing are quite different to the turning points.  There's a noticeable ease of movement around that critical point.


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