Swing Trading Strategy

Swing trading is a way that aims to obtain profit in a short time. Called the swing, because the turnover position (close / open - buy / sell) is done in a short time. Here, accuracy and neatness momentum of trader to find the right to do the open position is necessary. Swing trading concern to the technical analysis in determining the right moment to open position, and usually does not need to pay attention to news or analysis fundamental, but more focused to the price movement of a pair desired.
swing trading is best done if the market does not have any
news and influential enough that the price movements tend to be formed waves in the short time period.

There are several things to do in the swing trading:

1. Chart style that should be used is a candle stick, because the candle stick pattern, momentum price movement (up / down) can be seen more clear.
2. Use a horizontal line indicators for present value
Pivot, ressistance and support from the pair. This is important
more secure because the swing is done at the time the position which range of pair around its Pivot or in a wave pattern around the support or
resistance.
3. Parabolic SAR indicator can be used to help determine
momentum market entry. Usually, when prices begin to rise, this indicator will
appear below the chart, while prices start coming down this indicator
will appear in the top of the chart.
4. Indicators as adjuvant can be used ADX or Bolinger Band.
In principle, ADX has 3 parameters: DI +, DI-and ADX line. Signal
Sell for ADX shown to decrease when IN + and IN-cut, and
range ADX line is below 20, while the ADX signal for Buy
indicated when + DI moves up and AT-cut, while the ADX line
is in the range of 40.

But in some cases, these parameters still relatively
parallel, so that was quite difficult for traders to determine the position. For that
case, we can use Bolinger Band (BB) indicator as an aid. BB actually
consists of 2 lines, high-level parameters (upper band) and low level (lower
band), but sometimes two parameters so that ignites this looks like
one line, and at others it will form the tunnel.

BB is quite popular as a technical indicator. In general, BB
describes the tendency overbought & oversold market's top pair
concerned, the more close to the limit price chart above, the more stronger
overbought indication. cut the chart at the time limit on the BB - this
signal is sold, at the time the chart below the limit cut
- This is a buy signal, due to an oversold indication of the strong.
Now, how do I determine the target?
As I explained above, swing is very effective to be used when the chart of pair
shows the wave movement (up-down) form.
To determine the target, we must first specify the Range (R ') price
which is the borders of high (H) & low (L) value of the pair.
R '= H - L
If you have a few waves, then specify the average H and the average L,
then we get that R is more focused.
In addition, note also price is likely to increase, or
tend to go down. This can be done to attract the straight line
connect the dots highest waves. If the line is increased, then
the price trend will increase, means that if we open buy position, the gain will likely become increasingly big. Conversely, if the line is decreased, so if we sell open position, we will get more gain.
Well if you can have in R ', the range trading (R) is:
R = R '- (2 x S) ; where S=spread.

For example, we play in the EUR / USD which spresd is 3 (difference value between bid and offer), then R = R '- (2 x 3). target profit that can be achieve is
half of R value. Or if we can see the price trend such as I described above, we can determine the target with more carefully.

Hopefully helpful.