Swing trader is an investor or speculator who holds his trades anywhere between one day to a few weeks. He is someone who generally trades short term on long timeframes. His timeframes are longer than short term traders but shorter than traders who are into long term trading. They are used by individual as well as professional traders. People who are into day trading exclusively view swing trading as highly risky as the stocks are held overnight. But this is not the right way to judge it because if done wisely swing trading can lead one to reap huge returns.

Swing Trading is of three types. First one is, Trend Trading which can be held anywhere from a day to a few weeks; trends are executed with the help of graphical charts; these trades may or may not seek help of indictors while trading; and these generally flow in the direction of market.

Second type of swing trading is just the opposite called the counter trend trading, which moves in the opposite direction of the market. They too can be held in more or less same timeframes. The underlying expectation of trader while executing such trades is that market can change the direction anytime.

The third is range trending, which last not more than several days. In this type, trades may be executed in either of the direction depending on traders reading of the market and in the direction in which he is expecting the market to move.

Are you a novice or experienced tarder but uou have not been making profit from this forex business, on the long run? I will be using this thread to teach people to make profit trading forex. Especially if you are a busy type or you have a business or an employment that takes most of your time during the day but you can still spare 20 - 30 minutes in the evening/night time or very early in the morning to anlayse market and make some trading decisions, then this thread is mainly for you. Lets roll together.





IMPORTANT INFORMATION AS MODIFIED ON 27/06/2015; 9:55 AM
STRICTLY FOR THOSE THAT WANT TO LEARN FOREX FRESH

Forex Trading School on whatsapp will be launched in July.

In the past few weeks i have been receiving PMs and emails from interested newbies and prospective forex traders who want to learn the nitty-gritty and pros and cons of this unique global business - Forex Trading.
Hence, to make things easier for me and you, i have decided to host a training school online beginning with mobile trading on a popular mobile social platform - whatsapp. Aside the regular group which I believe is mainly for experienced and learned forex traders, the trading school which will be mainly for those that want to learn, trade and profit from forex from scratch will teach you the basics and strategy to start out and trade forex profitably on the long run after which you will graduate and be able to join the gurus' group on whatsapp free of charge. It is a one-on-one mobile training. Though, there are several websites online where you can visit, read, study, and learn forex trading like Babypips but I bet you will have questions which will require urgent answers and clarification including live practicals which these websites may not be able to offer satisfactorily.
To signify your interest in joining the Forex Trading School on whatsapp, send me a PM or drop your email here and i will contact you asap.

Enjoy your weekend.

Day Trading Versus Swing Trading In Forex

If you are a novice trader, this should be one of your important questions that if you should be a day trader or a swing trader. It is a little hard to decide at the beginning and sometimes even after two years of practicing you still don’t know if you like to be an intraday trader or a swing trader.

What is day trading?

Day trading or intraday trading means taking positions during the day, closing them by the end of the day and not leaving any open position before going to bed. It means whether you make or lose money, your positions are all closed before you go to bed or at least you move your stop loss to where the profit you have made is protected and you just want to make some extra profit, if possible.
For day trading, you mainly have to use small time frames like 30min and smaller and it is not possible to trade intradaily using long time frames like daily or even 4hrs.

What are the day trading advantages?

The first and most important advantage of intraday trading which is also the most important reason of choosing this trading method by many of the new traders is that in intraday trading you do not leave any of your positions open at the end of the day and when you want to turn off your computer. Most novice traders can not have any open position when they go to bed. They cannot tolerate the stress. One reason is that they take too much risk, or they do not set a proper stop loss, or they trade with the money that they can not afford to lose. So if the market goes against them while they are asleep, they lose a lot and that is why an open position ruins their comfortable sleep. And of course the other reason is that they are not experienced enough and forex trading is still stressful for them. The other thing is that most novice traders think that if they work with the smaller times frames, they will have more trading opportunities and they can make more money. They do not want to miss any of the market ups and downs and so they work with the small time frames.

There is nothing wrong with intraday trading if you do not take too much risk, set a proper stop loss for your positions and trade with the money that you can afford to lose. But if you make these terrible mistakes, even the smaller time frames that provide more trading opportunities cannot help you to make money and you lose all the money you have in your account. Money management is the most important aspect of any trading method that you can have. If you do not follow the money management rules, you can not survive in forex jungle.

Swing Trading:

In swing trading, traders use the bigger times frames like 4hrs, daily and even weekly and monthly. Naturally sometimes you will have to leave your positions open for several days or even weeks. Most of the experienced traders prefer swing trading. First because they have already tried all other kinds of trading methods and they have come to this conclusion that they are more comfortable with the bigger time frames and trading with these times frames makes enough profit for them. They have become able to control their greed and so they don’t want to take all the market ups and downs. They believe that small times frames may give them some more trading opportunities, but more trading opportunities doesn’t necessarily mean more money. Sometimes it means more losses. On the other hand, they do not like to sit at the computer the whole day. They have learned that it doesn’t make more money for them, or even if it does, they are happy with less profit that comes through several hours of less working and struggling. More importantly Swing trading (on bigger time frames) affords them time to attend to other businesses/investments during the day, to associate with family and friends and enjoy their personal life. That is, Swing trading brings more freedom to the life of a swing trader.

What about you?

If you are an experienced trader, you have already chosen the way that you are comfortable with. But if you are a novice trader, you still need some time to make your decision. You have to go through some stages. You have to become a little more experienced and try different methods and time frames and see how they work. You also need to learn and follow the money management rules. You need to learn to control your greed and take a proper risk in your trades. Then you can decide if you like to be a day trader or a swing trader.

Market Analysis/Trade Set up - EUR/AUD

From the daily chart below, candle #2 outrightly engulfs candle #1 telling us that the bulls are in control. The next candle that follows candle #2 closed bullish and at the same time closed well above key resistance level around 1.4090, which confirms the possible uptrend that had started few days back. An aggressive swing trader would have entered a long trade at the close of the bullish engulfing candle #2, but we waited for the break of the resistance level and placed our buy entry above resistance line. Our target is towards the nearest resistance area 1.4496. Stop loss could be at the low of candle #2. Remember,we are swing traders, our stop loss will be wide and also the target. The trade could take a few days or weeks before target hit or we exit manually.

Fx4Pay:
Market Analysis/Trade Set up - EUR/AUD
From the daily chart below, candle #2 outrightly engulfs candle #1 telling us that the bulls are in control. The next candle that follows candle #2 closed bullish and at the same time closed well above key resistance level around 1.4090, which confirms the possible uptrend that had started few days back. An aggressive swing trader would have entered a long trade at the close of the bullish engulfing candle #2, but we waited for the break of the resistance level and placed our buy entry above resistance line. Our target is towards the nearest resistance area 1.4496. Stop loss could be at the low of candle #2. Remember,we are swing traders, our stop loss will be wide and also the target. The trade could take a few days or weeks before target hit or we exit manually.

From the EA Analysis/trade set up posted yesterday (last night), we could see that the pair went bullish as proposed - Price Action thing. If you had taken that trade last night, you probably would be around 200 pips in profit by now though I entered the trade on Monday night. The target could be hit tomorrow if the pair remains volatile or possibly next monday. Swing trading takes few das or weeks before profit rolls in, it only requires patience. Profit from the EA Buy trade as at 2/4/15 9:50 pm

Kudos and following

Hmmm........make we dey watch nah.

pls,what advice do you have for anyone who has dollar right now,it was actually bought at 213k/dollar,pls,is it adviseable to sell as the money for payment of an important project,if one sell now,will i not come back and buy expensively?making me lose in 2ways?
PLS URGENT ADVICE!

infofirst:
Kudos and following

My oga at the top, i salute n appreciate ur presence. Pls don't. follow alone but also be d co-pilot. Sir, u are d Boss.

Fx4Pay:


My oga at the top, i salute n appreciate ur presence. Pls don't. follow alone but also be d co-pilot. Sir, u are d Boss.

Just that we have a Forex alert thread already in this site n ur presence n contribution would v make the place much more powerful.

Eu paying as u dropped.

excellent analysis, sir FTA would really appreciate ur contribution there.

docus:
excellent analysis, sir FTA would really appreciate ur contribution there.

He is right. hope to see you on FTA fx4pay, however pls keep on if u are more comfortable here, following...

@infofirst, docus n pinbar. i really appreciate u all n i want to let u know i am one of the guys that used to view FTA from d sidelines. I almost everyday view FTA n learn 1 or 2 things. it is a very interesting n educative forex thread, d best for both pro n newbies.
As much as i love to join d thread, i am not a day trader. Not that i hate day trading but my profession n working environment does not 70% of the time permit me to stay glue to d screen during d day. So i decided to choose trading at night or early hrs of the day thereby becoming a swing or long term trader.
I only created this thread to serve as my swing trading journal and also a trading guide for me and any one here that chooses swing/long term trading type not a trading signals service on its own. i once again appreciate all of u guys @ FTA including naijababe. You are all great n will love ur presence here anytime for ur down-to-earth forex education.

My trades positions at at d close market this week 3/4/15 9:58pm.
EA n EU doing well as they closed bullish today. Hope EA hits tp by next week Monday or Tuesday before it turns back to d downside.

Happy Easter in advance to u all.

Kudos n quite understood you n will surely check here from time to time. Bookmarked.

I joined the eu train as well but out and look forward to rejoin next week till 1.1050 as I felt market might respect 1.109*/1100 but all the same.... Am with u.

PRICE ACTION

Price action specifies changes in prices of currencies over a specific period of time. As we know currency pair is made of two currencies and both these currencies experience fluctuations in their price on an ongoing basis. This happens because both are being continuously traded in the open market in various permutations and combinations across the globe round the clock. As a result of this continuous action, prices undergo a fluctuation. And when these changes indicating at price action of currencies are plotted on a chart such a chart is known as price action chart.

It has prices plotted for various timeframes on it. With the help of these charts speculators apply technical analyses to it and develop trading strategies. Even if ten traders are referring to the same chart they will all come up with a different strategy to execute trades depending on their perception and expectations of market which will be dependent on their personal trading experiences. Price action it is said is the heart of Forex trading. When a trader gets a clear idea about what price action is, he begins to understand about making his entry and exits better.

More updartes on this topic later

Seeing another ardent follower of price action here.Nice PA dissection and analysis.welldone bro

Wisdomxy:
Seeing another ardent follower of price action here.Nice PA dissection and analysis.welldone bro

My oga, na ur boy o. its bn a long time. hope u dey from from Bishop (Malach).
I saw ur pm and av replied immediately.

Hope support and resistance will follow after PA.....

By price action, I mean an analysis of the movement in prices and the inferences you can deduce from it. Forex trading, just like stock, and for that matter any other trading platform is deeply dependent on the exact pricing roadmap. This price action is primarily the result of the demand-supply dynamics, and the success of any strategy is closely interlinked with the nature of the price action that is seen. So what exactly is price action and what are the factors that determine any changes in it? Importantly how closely do you need to monitor the changes to maximize your profit outlook?

Defining Price Action
Let us start with definition first. What exactly is meant by analysis of price action. I would say it means analyzing the movement in the price of a specific currency pair in the forex market over a set period. In other words, price action is the natural upmove and downmove in a currency’s value during a specific period in the market and the trading strategy of an investor is directly dependant on the exact direction in the prices. Most trade decisions are based on this upward and downward direction of prices.

So what happens when you start decoding this price action? By learning to understand the price action in your chosen trade, you will be able to determine the bias of the market, the direction in which the trade is tilted towards. Interpretation of this directional bias also helps in anticipating future moves. The price action helps you get a better idea of key levels, and it is these levels that are crucial. Future moves are predicted on the basis of how and when the price reach or exceed or slip below these levels. When all your trading action is based only on the price move irrespective of other factors, it is known as an indicator-free price action on the chart.

EA AND EU TRADES UPDATES

After the close of market today 6/4/15, EA closed indecisively but we are more bullish bias. If the high of today's candle is breached tomorrow , then we should be hopeful that the bulls will push the pair up to our target level.
After an up rally on Friday 3/4/15, the bears took control of EU today as the level 1.1050 was respected. We move the SL to 1.0830 should price continue to fall below the low of Friday's candle in order to protect our position on this pair.

EA and EU trades updates

EA closed manualyl with +35 pips after it is clear that the pair is rallying downward.
EU closed manually with -50 pips after confirming the Dark cloud (candle #1) candle formation with the bearish candle #2 as shown below. The pair may resume downward if the 1.0810 level is breached.

POSSIBLE TRADE SET UP FOR THE WEEK - GA

EUR/GBP
SELL @ 0.73107
TP @ 0.72500
SL @ 0.73374

Good luck!

keep it up

fxstory:
keep it up

Thanks sir.

Fx4Pay:

My oga, na ur boy o. its bn a long time. hope u dey from from Bishop (Malach).
I saw ur pm and av replied immediately.

Sorry for the late reply I for the pm.I shall be waiting for your response bro.Good thinking here.

Application Of Price Action In Forex Market

On the face of it, price action in the forex market is no different from how it is analyzed in the
stock market. However, there is something unique about the forex market. The huge amount of
liquidity simply turns the game a lot more fascinating than you would imagine. More than $3
trillion turnover is seen in the forex market on a daily basis. This ample liquidity always makes
both entries and exits into the forex market relatively simple, and this leads to a lot more action
and volatility in the forex market. This, as you can expect, gives a flip to any directional move
and makes price action the hero of the occasion.

The most advantageous feature of the price action in the forex market is it allows creating
reference points for future transactions. You can decide on your own entry and exit levels based
on the resistance zones and support points seen in the price action. At least for beginner sit is
always more profitable to choose these time-tested price patterns that have historical evidence
of profitable outcome. Thus, all you need is a collection of constructive entry points based on
the price action records and putting in money in pre-tested high probability profitable strategies.
However, a basic requirement is you need to isolate price action from all other probable factors
that can ever impact the currency’s value. Go ahead and clean your chart of all other elements
and what you have is an ‘indicator free pricing chart’.

However, an interesting feature of price action is that most other factors are derivations of this
principal factor. Thus in terms of analysis this becomes the primary data that forms the
cornerstone of basic money market movement and effectively the moving force that determines
the movement of other secondary data like economic factors that influence price action.

Kudos n expecting support n resistance text to be in the list to come

SUPPORT AND RESISTANCE LINES

Support/resistance lines and levels can help you to take stronger positions and maximize your
profit, no matter what trading system you use. Plotting the support/resistance lines on the
charts needs some experience. You should choose the strongest and most visible highs and
lows , or peaks and valleys to plot the support and resistance lines. If you are new to chart
analysis, chances are you don’t choose the proper highs and lows to plot the lines on the price
chart. Then, MT4 Zigzag indicator can help you a lot to Locate Highs and Lows on the Price Chart

One of the questions that a trader should be able to answer is that how long a support or
resistance line is valid and can be trusted?
To know how long a support/resistance line is valid, first you have to make sure that you have
already plotted a valid support/resistance line on the chart. As long as the price has not reached
and tested the line, you don’t know whether it is valid or not. When the price reaches the line, if it
reacts to the line, it means the line is valid. If the price doesn’t react to the line, as if there is no
support or resistance line there, then the line is invalid, and so, you have to remove it from the
chart, or adjust it to a better position.

The other thing is that a valid support/resistance doesn’t remain valid forever. Sometimes, the
price proves that a line is valid, but later when it wants to retest the line after it is broken, it
violates the line again, and so the lines become invalid.

When you plot a line on the chart, the price reacts to it. It means if it is a resistance line, the
price goes up and closes below the line when it reaches the line. If it is a support line, the price
goes down and closes above, when it reaches the line. Markets usually tend to break above
and below the resistance and support lines respectively. If the price closes above the resistance
or below the support line, we say the line is broken.

However, even after the line breakout, the price tries to “retest” the broken line. It means when
it is closed above a resistance line, it goes down to retest the broken resistance line. Usually the
broken resistance line works as a support and doesn’t allow the price to close below. Similarly,
a broken support line doesn’t allow the price to close above when the price retests. This is
another signal that the line is valid and strong, because the market reacts to it even after it is
broken.

MT4 ZIGZAG INDICATOR TO LOCATE HIGH AND LOWS ON PRICE CHARTS

Novice traders usually have a lot of problems locating the proper price highs and lows or peaks and
valleys on the price chart to plot the support and resistance lines. They usually choose the wrong and weak highs and lows to plot the support and resistance lines, and so the lines they plot are mainly invalid. This is a common problem among novice traders. Even experienced traders sometimes make mistakes in locating the proper highs and lows. It takes some time to train the brain and eyes to see the real and main highs and lows. Most of the time novice traders think that they have located a strong trade set up.

One of the easy to access tools is the ZigZag indicator . It is one of the default MetaTrader indicators . To add the ZigZag indicator to your charts, just (1) open a price chart, and then (2) press Ctrl+N to openthe Navigator, (3) open the indicators dropdown menu, (4) scrolls down and (5) drag and drop ZigZag to the chart: ZigZag default settings is 12 which is a little fast. It means it locates the small and weak highs and lows which can cause you to make mistake in plotting the lines. You can use the larger settings like 24 or 36 to make the indicator locate the bigger and stronger highs and lows. Then you can connect the highs and lows with trend lines and have the support and resistance lines on your charts:

welldone bro.
You are welcome in the forum.

Wisdomxy:
welldone bro.
You are welcome in the forum.

Thanks sir.
I am yet to receive any invitation from the group.