This is going to be a series on simple swing trading with the objective of capturing swings that have a minimum 3:1 risk-reward. We will take what we have learned about the components of a swing and put it all together into simple swing trading. Swing trading doesn’t have to be complicated and can be quite relaxing. It’s just a solid impulse up showing intent, then a reaction pullback, then the sellers in that pullback getting swapped and showing us a possible new leg up to new highs. This kind of swing trading applies to futures, forex, or stocks in any time frame. In this video, we look at a swing trade in the GBP/USD and SBSW.
In the previous post “Gap On The Left”, we looked at a simple, relaxed way to read and follow markets. In this post, were going to combine that with relative swings and follow price down into the gap on the left and let it tell us when it wants to turn back up. So often as traders, we ignore “what is” occurring in favor of what we think or want to occur. You can reference the post “One-Line Practice For Personal Insight” for practice in following swings.
In this video, I will show you a simple visual way to read the flow of the market. Big Gaps are easy to see on the chart, our eye naturally gets drawn to them. A gap is a quick supply-demand imbalance that pushes all the guessing traders (contraction) into or out of their positions (expansion). Use this simple framework to make observations then create your own ways to trade it using those observations.