The Forex Trading Swing Strategy

Ever wondered how people find the right Forex strategy? You can be sure that it is not easy considering the fact that there are thousands of them to try out. Worse still, there are technical indicators that also need to be considered when choosing a trading strategy.

The good news is, it does not have to be that complicated and challenging. You can start by creating a checklist of the trading strategies you will use. When making a list, make sure that you include a swing trading forex trading strategy.

What is Swing Trading?

Forex swing trading is a trader’s attempt to benefit from the market swings. Forex market swings have two parts: the swing point and body.

As a forex trader, it is your duty to time entries such that the majority of a swing body will be caught. Even though catching swing points is very lucrative, it is not too necessary. As a matter of fact, an attempt to catch extreme swing bottoms and tops might cause you increased losses. In such a case, the best way to do it is by being patient and wait for the price auction sell or buy signal.

Difference between Swing and Day Trading

As we’ve established, the idea is swing trading by catching bigger market swings. Naturally, this will sometimes mean having holding periods of even several days or weeks. Day trading typically uses shorter holding durations and can sometimes even be a few seconds worth. While there are other trading styles available, the day and swing styles are the two most popular.

How to know if Swing Trading is suitable for you 

You will know swing trading is suitable for you if:

·         You are okay with holding your trades for some time, even days or weeks:

Many swing trades last for up to several weeks. This means you might have to hold positions even over some weekends. Long holding periods also come with risks. The good news is that there are ways of managing such risks. One such way is closing the position before a weekend, especially if there is a likelihood of volatility, e.g. government elections.

·         You’re looking for more free time:

Swing trading gives you more free time. You May end up spending about 40 minutes reviewing charts daily. This, in turn, keeps you safe from overtrading.

·         You are okay with taking fewer trades while earning more on each trade:

Swing trading works best when there are higher time frames. As such, there are limited opportunities. That is why you may end up having even five setups a month. Even so, each trade’s return might be more significant as compared to that of day traders.

·         You want a slow-paced trading style:

Sometimes, slow is not such a bad thing in forex trading. A slow-paced trading style like the swing style means having more time to make correct decisions. The result is less anxiety and stress.

·         You have full-time school or job:

If you are not ready to be a stay-at-home trader, swing trading is the right style for you. It gives you the flexibility to work around your schedule.

How to know swing trading isn’t suitable for you:

As is with everything else, the swing trading style is not for everyone. Here are some of the signs that you shouldn’t use this trading style:

  1. You want to know if you make the wrong or right move immediately:

Long term trade requires patience. If you want immediate results, the swing trading style is not for you.

  1. You have anxiety whenever a trade doesn’t go your way:

In most instances, markets go a completely different way from the one you anticipated. All traders have to deal with a drawdown. If you get anxious each time you experience a drawdown, the swing style isn’t for you.


The swing trading style gives you a less stressful trading environment as you produce great returns. That is why it is good to have something else to do other than trading when using this style. The most significant factor in using this style is getting accurate levels. If your chart’s resistance and support levels aren’t reliable, you will be trading with low confidence. As such, check daily time frames for reliable signals.