Full swing trading strategy
What is swing trading in Somalia?
Swing trading is a variant of making trades at the moments of pullbacks (corrections), formed when the price is trending up or down. The main difference between swing trading and other trend trading techniques is the time frame used (this type of player is relevant for daily and weekly timeframes) and iron risk management.
Swing trading is the best strategy in Somalia, which is a combination of different strategies, based on entering the market in the direction of the main trend. At the same time, the entry is made at moments of price pullback in the opposite direction. This approach allows one to gain maximum profit as in addition to the trend movement, the trader also manages to profit from the correctional pullback. Often, the correction can be more than 30-50 pips, which also gives a good profit margin.
Swing means "move by waves". The trader really catches the corrective waves and follows the trend. The main thing is to learn the basic rules of systematic trading. Try it and you are sure to succeed!
Swing trading strategies stocks often use the Elliott Theory which includes an ideal movement of 5 trend waves of rise or fall and 3 waves of correction. This allows you to find at least 3 successful entry points. However, this picture can only be formed in case of a perfect trend. Elliott Theory is not a prerequisite for profitable swing player.
Follow these rules, which should be followed if you decide to settle on a swing trading strategy in Somalia:
- If you choose the right time to open the trade, the price will immediately go in the direction of profitability. If, however, within a couple of hours of entering the market, the price has moved in the opposite direction and the trade becomes unprofitable, then you should exit the market and look for a better opportunity to open a new position.
- It is advisable to record an impulse growth in "plus" price immediately after the movement has reduced its strength. For example, if the price jumps up just after you open a buy position, you should take your profit and close the position. Most likely, after such a spurt the price will make one more pullback, and you will have an additional opportunity to open one more position and take more profit from the market.
- For each order it is necessary to establish a Stop-Loss protective order. Profit can be fixed using both standard Take-Profit and Trailing Stop.
- If at the end of the current player session your trade is in the plus position, it can be carried over to the next day. A minus bet must be closed on the day it is opened.
- You should not open trades during market hours or when important economic news is released. Open lots should be closed before significant news that can influence the trend is released.
- If the trend obviously changes, you should close your position manually, without waiting for Take Profit or Stop Loss.
The best option is to place a stop-loss below the support level with a wide range (100 pips). It helps to prevent possible stop-loss roll-overs and gives the price dynamics room to develop naturally.
Pros of swing trading:
- Trading along the trend gives less psychological stress on the trader.
- Fewer "caught" stop orders.
- Gives more time to make decisions.
- Allows to give 1-2 hours per day to the market and do other things or combine trading with other work.
Drawbacks of swing trading:
- The markets are in trend 20-30% of the time, therefore a swing trader does not have the opportunity to earn often.
- To increase the possibility of earning, the trader needs to trade on different exchanges or markets (stock market, currency market, or even cryptocurrency market).
- As trader opens trade for several days to several weeks, the amount of initial deposit should be significantly higher than for the day trader (it is connected with the size of stop order as well as with the amount of earnings).
Trading a swing day trading strategies in Somalia
Swing player involves identifying and using swings which allow you to calculate favourable entry points into the market. You should not open a position if you are unsure of the underlying trend. In this case, the possibility of making a profit can be compared to winning at roulette - everything will depend only on luck. In order to determine an entry point into the market, study the AZT (Active Trader's Zone).
Search for a point in the active zone
The price channel (Keltner Channel or Bollinger Bands) or the distance between moving averages can be used as the active zone of the trader. For example, the active zone of the trader would be the distance between two moving averages SMA (10) and EMA(30). This is the zone in which the trader (provided that the price has come to the designated area) decides whether or not to enter the market. If the price is in the AZT, it means that there was a sufficient pullback to open a lot, and it is necessary to analyze the entry point and set the exact parameters of the deal.
You should refrain from opening transactions in two cases:
- If the price has fallen below EMA30. A deep correction or the emergence of a new trend is possible.
- If the price has risen above SMA10. The price did not make a sufficient pullback, the market is in a calm state.
When the price is in the AZT, various player tools from candlestick to technical analysis are used to determine the entry point. The Color Levels indicator can be used in swing day trading strategies. It plots resistance and support levels on the chart, which can be used to set stop-loss and take-profit, as well as to determine when a correction or pullback in price has begun.
Ways to find the order opening point
The basic analysis methods allow you to form a strategy for swing trading using the most convenient and well-studied tools. Let us consider some variants of finding the order opening point.
Pivot point - a pattern of three candles showing the moment of trend reversal:
- Bottom Up - a combination of three candles in which the second Japanese candle closes below the low of the first and the next candle closes above the second. A trade can be opened if the last candle closed above the high of the previous candle.
- The downside is a combination of three candles, where the second Japanese candle closes above the high of the previous candle, and the next candle closes below the second. A trade can be opened when the last candle closed below the low of the previous candle.
When analyzing a chart in AZT, swing trading strategies allow for the use of trend tools or oscillators, classic resistance and support levels. Standard price volume indicators can be used to confirm the significance and strength of the level. The higher the volume, the stronger the level and vice versa. For example, if you see that the volume of buy lots increases sharply when the price reaches the resistance line, it's a sign that the level is strong enough for the price to pull away from it.
Key levels allow you to determine not only the entry points into the market, but also the points for setting protective stop-losses. Go for it and have a successful player!
A swing player should use technical analysis of the market situation and forecast its probable changes due to macroeconomic factors. A trader for profitable trading swing trading strategies stocks should not forget about timely closing of the trade. One should calculate movement targets and develop manual closing techniques if there is a risk of loss.
How do I start investing with swing trading strategies in Somalia?
Swing players in Somalia are available to anyone, regardless of income level, current financial situation or type of employment. First you need to decide on a broker, which is an intermediary agent that allows a person to access the stock market. A broker is a partner on whom a lot depends, from the number of trading platforms and instruments available to the player's psychological comfort.
Then you should open a brokerage account from which you can trade: it allows you to keep money and other assets acquired during trading. To open an account on a trading platform in Somalia you need to register online. When registering you will enter your real details. After registering you will have access to all the broker's services.
Before you can open your first trade, you must make a deposit. This is easy and free. You can use almost any payment system to deposit cash. This is usually done as follows: you go to the website of the broker you intend to trade with. There, you click on the "Deposit" or "Deposit" button, and one of the payment systems will be offered to you.
A trader does not need to have a deposit of the full value of an asset in order to make buy/sell trades. You can increase your financial potential by using leverage, which allows you to trade with much more than you have in your account. This allows traders to make a good profit percentage with a small amount of money, but increases the risks involved in player.
To start using leverage, you must study the issue carefully and learn to control your risks. Try it and you will succeed!
If this is your first time trading swing trading strategies, you should first use a demo account, in which you trade with virtual money. With a demo account you will have access to all the features of the trading platform, get to know all the fine points of the process, and learn all the swing trading strategies. Good luck in player!