Swing trading by Rayner Teo

 Swing trading is a trading methodology that seeks to capture a swing (or “one move”) in the markets.

The idea is to endure as “little pain” as possible by exiting your trades before the opposing pressure comes in

When the market is trending, it doesn’t go up in one straight line.

Instead…

It moves higher, pullback towards an area of value, and then continue trading higher.

And where does the market retrace to?

Possibly towards the Moving Average

In a strong trending market, the price tends to pullback towards the 20MA.

In a healthy trending, the price tends to pullback towards the 50MA.

In a weak trend, the price tends to pullback towards the 100MA and beyond.

Here’s how to do it:

1. Identify a range market (market condition)

2. Wait for the price to reach Support (area of value)

3. If the price reaches Support, then wait for a False Break (entry trigger)

4. Set your stop loss 1 ATR below the candle low and take profits before

Resistance (stop loss and target profit)