In Simple Swing Trading Part 2, we took our swing and placed it into several contexts. In this video, we learn ways to follow the market with a single CIB (Change In Behavior) line in the pullback phase. We allow price flow to tell us where the buyers or sellers are and when that changes so we can manage risk. This is much different from the nervous experience of trying to predict where a swing should land. One of the things I try to get across in this video is the uncomplicated nature of following (as opposed to leading) price flow.
In recent live sessions, we have been going over how and why to structure a trade plan so that we are not making ineffective emotional decisions on the fly while under pressure. In this video, I demonstrate making a precise trade plan on SAP. Use this example as a guide to designing your own trade plan where you:
Know our method and design precise rules for:
- Entry: Know what gets you in
- Initial stop: know where your stop goes
- Money management: Know your position size and trade management after in trade
- Exit: know what gets you out
In Simple Swing Trading part One, I went over the components of a swing and described what simple swing trading is. In this video, were going to take our swing and learn how to see it in two different contexts that will produce the swing. The first will be the first pullback after a breakout of a range. The second will be a balanced reaction leg. In both, we wait for a pullback and a swap of price as a confirmation. I talk about confirmation parts of the swing in “Learning To Read Price Action Part 3″ and” Left and Right Side of a Pivot Entry”.
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.