Forex Swing Trading - A Simple Timeless Way to Make Big Forex Profits

By Samuel Leslie Berkovits

If you want to make big Forex profits, Forex swing trading is a simple and timeless way to make money and here we will look at how to do it correctly and why it works.

Forex swing trading is a great way for novices to use because its very simple to learn, is easy to do and you get a lot of trading opportunities. First let's look at why it works.

Forex markets are made by humans and humans are emotional beings and they will always push prices to far either up or down as their emotions come into play and you can see this in any currency pair prices spike to far to the upside or downside and become overbought or oversold and then these spikes retreat back.

The aim of the swing trader is to sell into overbought levels and buy into oversold levels and look for prices to return to fair value but how do you do this? Let's take a look, let's take an example of how to swing trade a currency which is overbought.

Prices are moving up slowly and spike to the upside, so you look for a level of resistance to sell into. As prices move to test resistance, you need to check price momentum and use some momentum indicators which will give you a visual view of how overbought the currency is; there are plenty of momentum indicators you can use but one of the best is the stochastic, it will only take you around an hour to learn and may represent the best hour of Forex education you will ever get!

If prices are moving up, the stochastic lines will be pointing up - wait for the lines to move into overbought territory and simply wait for a cross to the downside, to time your trading signal. Put your stop above resistance and look for an area of support where prices should pull back to. I have always found the 18 day MA is a good level, try it and see for yourself.

You then take profit just above the support level your targeting, never wait for a test of support in case prices recoil back. Forex swing trading is a "hit and run" form of trading and will allow you to make a lot of profits and build a great income over time and as you can see, its very simple to do and all the best Forex trading methods are.

Forex swing trading will always work, is fun to do and can be very profitable - try it for yourself and see how much money you can make'