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The Best Forex Swing Trading Strategies

The Most Effective Forex Swing Trading Techniques

Swing trading is a handy option for most people to trade the forex market, particularly those who are just getting started trading part-time.

It does not need traders remaining glued to their trading terminals all day. Most swing trading tactics, on the other hand, don’t involve more than a couple of hours every day. This is just for the purpose of looking for plausible trade setups among the currency pairs you are trading. It normally just takes a few minutes to determine whether or not a currency pair is worth investigating. You may start examining which trades to take and which trades to forego once you’ve reduced down the number of pairs to just a few probable trade settings. This procedure often takes less than an hour to complete, making it ideal for novice traders who trade part-time. This is ideal for folks who have a full-time job or are in school but have an hour or two to devote to trade.

For the time being, you may retain your day job while learning how to trade the currency markets. We’ve put up a list of five swing trading tactics that could work for you.

Forex Swing Trading Strategy Fisher Arrows

Trading with the long-term trend is a tried and true method of market trading. This is particularly true when it comes to swing trading. Most institutional traders who are position traders trade on greater timeframes. These traders trade using fundamental analysis and widely known technical indicators that they know are also being employed by institutional traders. Long-term trend indicators are also included. Most swing and position traders center their trade direction on this as well. On the longer timescales, doing this right generally means winning half the war.

The timing of the entry is the other half of the battle. There are a variety of techniques to time an entry these days. However, the majority of it is dependent on a combination of factors. It’s usually about matching a mid-term trend to a short-term trend or a momentum signal.

The Fisher Arrows Forex Swing Trading Method is a strategy that generates trade signals based on the intersection of a mid-term trend and a momentum signal while trading in the long-term trend’s direction.

Fisher Indicator

The Fisher indicator is an oscillating indicator that may be used to determine the direction of a trend. The mathematical equation for the indicator is based on a statistically normal distribution. This approach allows the indicator to show the peaks and troughs within a trend as well as how far the price has moved from the mean.

By presenting histogram bars, the indicator illustrates a trend. A bullish trend is shown by positive bars, whereas a bearish trend is indicated by negative bars. As a result, the indicator may be used as a trend filter. Crossovers from negative to positive or vice versa, on the other hand, might suggest a trend reversal.

Lukas Curves and Arrows

Lukas Arrows and Curves is a custom indicator that generates entry indications for trades. These indications are based on price movement momentum.

On the price chart, the Lukas Arrows and Curves indicator draws two lines. A channel is formed by placing one line over the other.

When it identifies a momentum reversal, this indicator also paints arrows on the price chart, providing an entry indication. The closing of price outside of the channel, which indicates a high momentum candle, is used to generate these indications.

Trading Methodology

The 200 Simple Moving Average is used to match this strategy’s trades with the long-term trend (SMA). Trades are made in the direction of the price’s relationship with the 200 SMA. Aside from that, the 200 SMA should be sloping in the same direction 

The Fisher indicator is used to determine the mid-term trend. No matter how positive or negative the Fisher’s histogram bars are, the mid-term trend should be matched with the long-term trend

Finally, momentum changes will be used to determine the entrance signal. The Lukas Arrows and Curves indicator will offer these momentum indicators by printing arrows suggesting the entering candle.

Indicators:

  • 200 SMA
  • lukas1_Arrows_Curves.ex4
    • SSP: 14
  • Fisher.ex4
    • Period: 36

Timeframe: Only 4-hour and daily charts are available.

Currency Pairs: major and minor pairs

Tokyo, London, and New York trading sessions

Buy Trade Setup

Entry

  • The price should remain above the 200 SMA at all times, suggesting a positive trend.
  • The 200 SMA should be above the Lukas Arrows and Curves channel.
  • The 200 SMA should be rising upwards, signaling a long-term positive trend.
  • Positive lime histogram bars on the Fisher indicator should indicate a bullish trend.
  • The Lukas Arrows and Curves indicator should display a bullish momentum entry signal with an arrow pointing up.
  • On confirmation of the aforesaid requirements, place a buy order.

Stop Loss

  • Set the stop loss below the entering candle on the fractal.

Exit

  • Close the order as soon as the Lukas Arrows and Curves indicator generates an adverse signal.
  • As soon as the Fisher indicator displays negative red histogram bars, exit the trade.
Fisher Arrows Forex Swing Trading Strategy A
Fisher Arrows Forex Swing Trading Strategy B

Sell Trade Setup

Entry

  • The price should remain below the 200 SMA at all times, suggesting a negative trend.
  • The 200 SMA should be below the Lukas Arrows and Curves channel.
  • The 200 SMA should be trending down, signaling a long-term negative trend.
  • Negative red histogram bars should be printed by the Fisher indicator, suggesting a bearish trend.
  • An arrow pointing down on the Lukas Arrows and Curves indicator should print, giving a bearish momentum entry indication.
  • On confirmation of the given requirements, place a sell order.

 

Stop Loss

  • Set the stop loss above the entering candle on the fractal.

Exit

  • Close the transaction as soon as the Lukas Arrows and Curves indicator generates an adverse signal.
  • As soon as the Fisher indicator shows positive lime histogram bars, exit the trade.
Fisher Arrows Forex Swing Trading Strategy D

Conclusion

This swing trading method is one of the most effective swing trading strategies available.

When trading on the 4-hour and daily charts, several momentum-based trade signals are successful. This is due to the fact that traders frequently draw signals from the prior trading session. Traders who trade on the New York open, for example, frequently draw signals from the London session. This usually corresponds to the 4-hour and daily charts. This is why momentum signals work so well on these timescales.

After a trade signal is sent, the price may chop around on lower timeframes for a short period of time. Traders, on the other hand, would frequently take cues from a momentum signal, which would frequently result in a trending market scenario.

During these periods, solid trade management skills are also required. Swing trading allows traders to go out of the trading station on a regular basis. Price fluctuation is still uncertain even on these timescales. As a result, traders should learn to successfully track the stop loss in order to secure gains rather than handing it back to the market.

Forex Swing Trading Strategy with Advanced MACD

Trading charts are fractal, as you may have heard. This suggests that the same patterns and behaviors repeat themselves throughout timescales. This is true to some extent, but there are restrictions. If this were entirely true, any approach that works on a 1-minute chart should likewise work on a daily chart. If you’ve looked at the currencies on both graphs, you’ll see that this isn’t always the case.

Components of a strategy, such as price action, indicators, and filters, should correspond to the periods on which you trade. On the 1-minute chart, several indicators perform well, but on the 5-minute chart, they are useless. There are additional tactics that work on daily and 4-hour charts but not on the 15-minute chart.

This approach employs a well-known trading indicator that is ideal for swing trading. It isn’t ideal, but it does attract a few pips.

Zero Lag MACD

A popular technical indicator is the Moving Average Convergence and Divergence (MACD). This indication is used by many experienced technical analysts. This is most likely why the MACD appears to be so successful for longer periods.

The MACD does, however, have an Achilles’ heel, despite its efficiency. It has a tendency to lag a lot.

The MACD has been changed to create the Zero Lag MACD. It’s been modified to account for the latency in order to provide traders a more accurate picture of what’s going on in the market.

This indicator functions similarly to the standard MACD. It shows a line as well as histogram bars. The standard MACD line, which shows the difference between two moving averages, is represented by the histogram bars. The line represents the Signal Line, which is formed from the histogram bars and is a moving average.

Crossovers between the histogram bars and the signal line signify the possibility of a reversal. These crossovers frequently occur when the MACD indicator indicates that the market is overextended. Another trend reversal indicator is when the bars cross over the midline. It is a little slower than the histogram and signal line crossover, but it is more consistent.

ASC Trend

The ASC Trend indicator is a bespoke indicator that uses breakouts to generate trade entry indications. On the price chart, it prints arrows to provide an entry signal pointing in the direction of the trend reversal.

This indication is straightforward yet highly effective. It tends to generate an accurate entry signal, despite the fact that it isn’t flawless. When used in conjunction with a complementing indicator that may assist filter out poor trades, it becomes even more powerful.

Trading Methodology

This method uses Zero Lag MACD trend reversal signals to trade swing points.

Rather than accepting every trend reversal indication that is offered, this technique screens out transactions that are counter to the long-term trend. The long-term trend filter will be a 200-period Simple Moving Average (SMA). Only trades in the direction of the trend will be taken using the 200 SMA. The price’s position in reference to the 200 SMA, as well as the slope of the 200 SMA, are used to select the trend direction.

Trend reversal entry on the Zero Lag MACD will be based on the histogram bars crossing over from negative to positive or vice versa. Trade exits, on the other hand, will be predicated on the Signal Line reversing towards the middle of the Zero Lag MACD range. This allows traders to join at the commencement of a likely mean reversal and exit at the start of a verified trend reversal.

Finally, the ASC Trend indicator will be used to determine the particular entrance candle. This would enable traders to make a precise entry, which would be verified by a momentum-based reversal.

Indicators:

  • 200 SMA
  • ZeroLag_MACD.ex4 (default setting)
  • ASCTrend_BO.ex4
    • RISK: 9

Timeframe: 4-hour and daily charts only

Currency Pairs: major and minor pairs

London, Tokyo, and New York Trading Sessions

Buy Trade Setup

Entry

  • The price should be above the 200-SMA line
  • The 200 SMA line should be trending upwards, signaling a long-term bullish trend.
  • The Zero Lag MACD bars should cross above zero, suggesting a trend reversal in the positive direction.
  • An arrow moving up on the ASC Trend indicator should indicate a bullish entry signal.
  • These bullish trend reversal indications should be in close proximity to one another.
  • On confirmation of the aforesaid requirements, place a buy order.

Stop Loss

  • Set the stop loss below the entering candle on the fractal

Exit

  • When the Zero Lag MACD signal line begins to curl down towards the midline, exit the trade.
Advanced MACD Swing Forex Trading Strategy A
Advanced MACD Swing Forex Trading Strategy B

Sell Trade Setup

Entry

  • The price should fall below the SMA line
  • The 200 SMA line should be slanted downward, indicating a long-term negative trend.
  • The Zero Lag MACD bars should cross below zero, suggesting a trend reversal in the negative direction.
  • An arrow going down on the ASC Trend indicator should indicate a negative entry signal.
  • These bearish trend reversal indications need to be in sync.
  • On confirmation of the given requirements, place a sell order.

Stop Loss

  • Set the stop loss above the entering candle on the fractal.

Exit

  • When the Zero Lag MACD signal line begins to curl up towards the midline, exit the trade.
Advanced MACD Swing Forex Trading Strategy C
Advanced MACD Swing Forex Trading Strategy D

Conclusion

This is an extremely successful trading approach. Despite its shortcomings, it accomplishes its intended function. It generates high-probability trade setups that have a high win rate.

Although this method is fairly systematic, having a confluence of additional elements that might assist the trade would be beneficial. Breakouts of supports and resistances, confluence with a higher period trend, or divergences are all possibilities. These occurrences increase the likelihood of trade setups even more.

Although there may be occasions when the price rises dramatically, there will also be periods when the gains are modest. In these situations, sticking to the strategy is preferable to allowing greed to force you to hold the trade for too long.

There are occasions when the Zero Lag MACD signal line’s exit signal is a little too early, causing traders to abandon the trade before the trend has ended. When the signal line shows symptoms of reversal, conservative traders should abandon trades. Aggressive traders, on the other hand, may choose to hold the trade even longer until it becomes evident that the market is reversing.

Heiken Ashi Smoothed Trend Forex Swing Trading Strategy

When swing trading, one of the sorts of tactics that may be used is trend trading. It’s not only practical, but it also offers the best chance of yielding massive profits in only a few deals.

Although catching deals that will result in large trends is tough, there is always the possibility that the next trade you execute may result in the large trend you are looking for. Furthermore, there are strategies to increase your odds of catching those massive waves.

Using dependable indicators that keep up with trends and trend reversals efficiently is one method to improve your chances of catching a large trend. Trading on the intersections of these indicators frequently results in trade settings with high reward-to-risk ratios as well as a higher win rate.

Heiken Ashi Smoothed

For most traders, the Heiken Ashi Smoothed indicator is one of the most dependable trend indicators accessible. When the market has obviously reversed, it reverses and continues with the trend until the trend has clearly stopped.

A variant of the Heiken Ashi candlesticks is the Heiken Ashi Smoothed indicator. Both indicators use colored candles that change color only when the trend changes. Their parallels, however, cease there.

The Heiken Ashi Smoothed indicator closely matches the behavior of moving averages, whereas the traditional Heiken Ashi candlesticks are more closely related with regular candlesticks. In reality, the Exponential Moving Average is used to create the Heiken Ashi Smoothed indicator (EMA).

Awesome Oscillator

As an oscillating indicator, the Awesome Oscillator is a momentum indicator that signals trend direction.

This indicator uses histogram bars to show the direction of the trend. The difference between the 5-period Simple Moving Average and the 34-period Simple Moving Average is used to create the bars. Instead of using the closure of the candle, these moving averages use the candle’s median.

A bullish trend is shown by positive bars, whereas a bearish trend is indicated by negative bars. A trend reversal is indicated by crossovers from negative to positive or vice versa.

The color of the bars changes based on whether or not their value is greater than the preceding bar. Green bars show that the current bar is larger than the previous bar, and red bars indicate that the current bar is smaller than the previous bar. Green bars show that the trend is gaining pace in a bullish trend, while red bars suggest that the trend is shrinking in a bearish trend. In a bearish trend, the converse is true. The red bars represent motion, whereas the green bars represent contraction.

Trading Methodology

The Heiken Ashi Smoothed indicator is used to trade trend reversal indications in this approach.

The 200 Simple Moving Average is used to filter trade signals based on the long-term trend (SMA). This is determined by the price’s position in reference to the 200 SMA, as well as the direction of the 200 SMA’s slope.

Aside from the 200 SMA, trades are also filtered based on the Awesome Oscillator’s indicator of trend direction. The Awesome Oscillator indicates that trade signals generated during an established trend have a high likelihood. There are additional trade entries that perform well based on the convergence of trend reversal indications from the Awesome Oscillator and the Heiken Ashi Smoothed indicator. However, as illustrated by the Awesome Oscillator, this technique trades existing trends.

Indicators:

  • 200 SMA
  • Awesome Oscillator
  • Heiken_Ashi_Smoothed.ex4 (default settings)

Timeframe: 4-hour and daily charts only

Currency Pairs: major and minor pairs

Tokyo, London, and New York trading sessions

Buy Trade Setup

Entry

  • The price should be higher than the 200 SMA.
  • The 200 SMA should be rising upwards, signaling a long-term positive trend.
  • The Awesome Oscillator bars should be positive, suggesting that the market is moving in a bullish direction.
  • The Heiken Ashi Smoothed candles should turn blue, signaling a reversal of the bullish trend.
  • After the necessary requirements have been confirmed, place a buy order.

Stop Loss

  • Set the stop loss below the entering candle on the fractal.

Exit

  • When the Heiken Ashi Smoothed candles turn red, exit the trade.
Heiken Ashi Smooth Trend Forex Swing Trading Strategy A
Heiken Ashi Smooth Trend Forex Swing Trading Strategy B

Sell Trade Setup

Entry

  • The price should be under the 200 SMA
  • The 200 SMA should be trending down, signaling a long-term negative trend.
  • The bars on the Awesome Oscillator should be negative, suggesting a bearish trend.
  • The Heiken Ashi Smoothed candles should turn red, suggesting a reversal of the bearish trend.
  • After the following requirements have been confirmed, place a sell order.

Stop Loss

  • Set the stop loss above the entering candle on the fractal.

Exit

  • When the Heiken Ashi Smoothed candles turn blue, exit the trade.
Heiken Ashi Smooth Trend Forex Swing Trading Strategy C
Heiken Ashi Smooth Trend Forex Swing Trading Strategy D

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Conclusion

This is the sort of method that may yield massive profits in only a few deals. There are, however, deals that might reverse quickly, resulting in tiny gains or losses. This method should produce a reasonable win ratio with a high reward-to-risk ratio in the long run.

This technique also benefits from trailing the stop loss to safeguard winnings. This permits traders to keep their earnings instead of giving them back to the market. One strategy is to trail a few Heiken Ashi candles’ stop losses behind the current candle.

Manual exits depending on price action behavior would also be extremely useful. This is arguably the most effective approach to exit deals; nevertheless, mastering leaving trades based on price action requires a lot of work and expertise.

Forex Swing Trading Strategy Octopus Trend

One of the most common forms of trading techniques among new traders is crossover methods. However, there are certain negative connotations associated with crossover tactics.

Some traders may believe that crossover tactics are only suitable for “novice” traders. While many beginner traders are drawn to crossover strategies because of their simplicity, many expert traders utilize them as well, whether as a trend confirmation method, a precision entry approach on a lower timeframe, or something else.

Others say crossover methods have already lost their competitive advantage. Certain crossover strategy configurations may not be performing as effectively as they formerly did. Trading techniques, on the other hand, should not be applied as a “one-size-fits-all” approach. For certain market circumstances, each technique performs well. There are certain indicators and suggestions about the sort of market scenario that should be addressed, but they are not moving average crossovers.

The Octopus Trend Forex Swing Trading Technique is a momentum-based crossover strategy. This approach is based on a solid crossover setup that is backed up by complementary indicators and momentum.

Octopus Indicator

The Octopus indicator is a unique momentum indicator that aids traders in determining the direction of a trend. By showing bars, this indicator indicates the trend’s direction. The color of these bars changes based on the trend’s direction. A bullish trend is shown by green bars, while a negative trend is indicated by red bars.

Octopus 1 and Octopus 2 are two different versions of the Octopus indicator. Both indicators are comparable in various ways. The parameters utilized inside the indicators are the only difference. Octopus 1 is more consistent, but Octopus 2 is more sensitive to trend shifts. The Octopus 2 indicator is frequently the first to invert in a typical trend reversal scenario.

However, there are times when the two indicators’ trend reversal indications are quite near. These scenarios frequently arise when the trend has reversed due to a major momentum change.

Trading Methodology

A 13-period Exponential Moving Average (EMA) and a 55-period Exponential Moving Average (EMA) are used in this trading method (EMA).

This crossover trade arrangement is quite similar to traditional crossover techniques. It generates profits and losses on a regular basis. However, trade opportunities that are screened utilizing the two Octopus indicators and a momentum candle are more trustworthy and typically result in gains.

A large momentum candle that began the trend reversal is required for a crossing to be regarded as a successful trade setting.

The two Octopus indicators should also agree with the trend direction as shown by the moving average crossover and the momentum candle to validate the trend reversal based on momentum.

After that, trades are held open until one of the two Octopus indicators reverses. Normally, this would be the Octopus 2 indication. This allows traders to enter the trade when the trend reversal is verified and leave the transaction before signals of a new trend reversal appear.

Indicators:

  • 13 EMA
  • 55 EMA
  • octopus_1.ex4 (default settings)
  • octopus_2.ex4 (default settings)

Preferred Time Frames: 4-hour and daily charts

Currency Pairs: major and minor pairs

Tokyo, London, and New York trading sessions

Buy Trade Setup

Entry

  • Both the 13 and the 55 EMAs should be crossed by price.
  • The 13 EMA should cross above the 55 EMA, signaling a trend reversal in the positive direction.
  • On the chart, look for a bullish momentum candle.
  • Green bars should be visible on the Octopus 1 and Octopus 2 indicators, suggesting a bullish trend.
  • These bullish trend reversal indications should be in close proximity to each other.
  • After the necessary requirements have been confirmed, place a buy order.

Stop Loss

  • Place your stop loss below the entering candle on the fractal.

Exit

  • When one of the Octopus indicators starts to show a red bar, close the transaction.
Octopus Trend Forex Swing Trading Strategy A
Octopus Trend Forex Swing Trading Strategy B

Sell Trade Setup

Entry

  • The price should cross below both the 13 EMA and the 55 EMA.
  • A bearish trend reversal is indicated when the 13 EMA crosses below the 55 EMA.
  • On the chart, look for a bearish momentum candle.
  • Red bars should be visible on the Octopus 1 and Octopus 2 indicators, suggesting a negative trend.
  • These bearish trend reversal indications should be in close proximity to one another.
  • When the requirements listed above are met, place a sell order.

Stop Loss

  • Place your stop loss above the entering candle on the fractal.

Exit

  • When one of the Octopus indicators starts to show a green bar, close the trade.
Octopus Trend Forex Swing Trading Strategy D

Conclusion

When applied correctly, this basic crossover method may yield decent gains.

Crossover methods are no longer as reliable as they once were. However, it does occasionally allow traders to spot a large trend, allowing them to profit.

This technique, on the other hand, relies on a few indicators as well as a momentum candle to confirm a trend reversal. This considerably enhances the crossover strategy’s dependability while keeping a reasonable reward-to-risk ratio.

Traders who wish to maximize profits from transactions that result in trends should leave their positions open until one of the indications indicates a potential reversal. Setting a preset take profit objective based on a multiple of the risk placed on the stop loss is another solid option for exiting trades using this method. This results in a favorable fixed reward-risk ratio.

This method would also need active trade management, as trends might change without warning at any time. Moving stop losses to breakeven and trailing stop losses to safeguard gains are examples of this.

Forex Swing Trading Strategy – Gann Fisher Trend

Although swing trading is fundamentally a longer-term approach, it may also benefit from short-term trend techniques. Although the holding periods aren’t as lengthy as other mid-term swing trading systems, short-term trends over a longer duration do yield excellent outcomes.

The type of indication that a trader employs is typically the determining factor in identifying trends. There are indicators that work better for detecting longer-term trends and indicators that work better for detecting shorter-term changes. Some indicators work well on longer timescales, while others work best on shorter ones. However, regardless of the duration of the trend that it detects, there are signs that may be employed on most periods, whether greater or lower timeframes.

The Gann Fisher Trend Forex Swing Trading Strategy use indicators to detect shorter-term trend reversals. As long as the short-term trend is in accordance with the longer-term trend, these short-term trends frequently provide trade setups with a positive expectation.

Gann HiLo Activator Bars

The Gann HiLo Activator Bars are a momentum technical indicator that traders may use to spot short-term trends.

By overlaying bars on the candlesticks, it detects short-term trend reversals and displays the trend’s direction. The color of the bars changes are based on the trend’s direction. When the indicator identifies a bullish short-term trend, the bars are colored blue, and when it detects a bearish short-term trend, the bars are colored orange.

Fisher Indicator

The Fisher indicator is a customized indication that appears as an oscillating indicator.

Based on a statistically normal distribution, this indicator identifies momentum. It then displays histogram bars that bounce around zero to illustrate trend direction. A bullish trend is shown by positive bars, whereas a bearish trend is indicated by negative bars. To clearly identify trend direction and reversals, the bars change color based on the direction of the trend. Positive bars are colored lime in this configuration, whereas negative bars are colored red.

Trading Methodology

This trading method is based on the convergence of the Fisher indicator and the Gann HiLo Activator Bars, and it has a high likelihood of success.

Trade setups should be in sync with long-term and mid-term trends to trade this method. The long-term trend is represented by the 200-period Exponential Moving Average (EMA), while the mid-term trend is represented by the 50-period Exponential Moving Average (EMA). Three factors will determine the direction of the trend. First, the price location in reference to the moving averages will be used to determine trend direction. Second, the slope of the moving averages will be used to determine trend direction. Third, the way the moving averages are placed confirms the trend direction. Once the trend has been validated based on the parameters listed above, trade setups in the trend’s direction can be traded.

Retracements towards the 50 EMA and the restoration of the short-term trend direction, in accordance with the longer-term trends, will be the basis for trades. The Gann HiLo Activator Bars and the Fisher indicator should suggest a trend reversal coinciding with the longer-term trends after the retracement, which would act as an entry signal.

Indicators:

  • 50 EMA
  • 200 EMA
  • Gann HiLo activator bars (default setup)
  • Fisher.ex4 (default setup)

Timeframes: 4-hour and daily charts

Currency Pairs: major and minor pairs

Tokyo, London, and New York trading sessions

Buy Trade Setup

Entry

  • The price should be above the 50 and 200 exponential moving averages.EMA
  • The 50 and 200 exponential moving averages should be trending upwards, suggesting a bullish trend.
  • A bullish trend is indicated when the 50 EMA is above the 200 EMA.
  • Near the 50 EMA, the price should retrace.
  • The Gann HiLo Activator Bars should momentarily print orange bars as a result of the retracement.
  • The Fisher indicator should momentarily produce red bars as a result of the retracement.
  • Place a purchase order when the Gann HiLo Activator Bars begin printing blue bars and the Fisher indicator begins printing lime bars.

Stop Loss

  • Set the stop loss below the entering candle on the fractal.

Exit

  • As soon as the Gann HiLo Activator bars start producing orange bars, exit the trade.
  • As soon as the Fisher indicator starts producing red bars, exit the trade.
Gann Fisher Trend Forex Swing Trading Strategy A
The Gann Fisher Trend Forex Swing Trading Strategy B

Sell Trade Setup

Entry

  • The price should be below the 50 and 200 exponential moving averages.
  • The 50 and 200 exponential moving averages should be trending down, suggesting a negative trend.
  • A bearish trend is indicated when the 50 EMA is below the 200 EMA.
  • Near the 50 EMA, the price should retrace.
  • The Gann HiLo Activator Bars should momentarily print blue bars as a result of the retracement
  • The Fisher indicator should momentarily print lime bars as a result of the retracement.
  • Place a sell order when the Gann HiLo Activator Bars begin printing orange bars and the Fisher indicator begins printing red bars.

Stop Loss

  • Set the stop loss above the entering candle on the fractal.

Exit

  • As soon as the Gann HiLo Activator bars start producing blue bars, exit the trade.
  • As soon as the Fisher indicator starts printing lime bars, exit the trade.
The Gann Fisher Trend Forex Swing Trading Strategy C
The Gann Fisher Trend Forex Swing Trading Strategy D

Conclusion

Even on a longer timescale than a swing trading strategy, this trading method generates short-term trade signals.

This method is quite dependable and should yield excellent benefits in the long run.

Trade settings frequently produce payouts that are twice the risk on the stop loss. This results in a good reward-to-risk ratio, giving the approach a high probability of success.

Identifying mildly moving markets that retrace towards the 50 EMA is the key to trading this method. Avoid trading exceptionally strong trends since retracements that accompany such a strong trend frequently turn into a true trend reversal. Identifying the proper trends would lead to higher-probability trades with reasonable returns.

 



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