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Swing trading can be highly effective in forex markets enabling you to trade with low risk and high rewards.
Swing trading is however misunderstood by many traders and they lose.
Here we will look at a specific method to swing trade that will give you low risk and high reward.
Swing trading
Takes advantage of corrections in value sideways or strongly trending markets and a typical trade will last 2
ooking for support or resistance that has been tested and held on several occasions preferably at new chart highs or lows.
2. Watch Momentum
Watch prices move strongly toward the support or resistance and look for confirmation that price momentum is going to turn.
This is the critical point!
You need CONFIRMATION that price momentum is waning, a turn is likely and the odds favour a swing trade.
You want some evidence that price momentum is not strong enough to take out support or resistance.
The best indicator for this is the stochastic indicator
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3.22 Copyright (C) 2007 Alain Georgette / Copyright (C) 2006 Frantisek Hliva. All rights reserved."
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