Technically Oriented Forex Trading Strategy ?

One of the most popular Forex trading strategy is swing trading. Swing trading has a significant focus on Forex technical analysis. Forex traders pay attention to fundamental information when they try to avoid trading during the economic releases, which may influence the market without being included in their Technical forex analysis.

Like the name indicator, swing trading is about trading swings of the currency pairs. Prices will make small ups and downs numerously before a final trend is settled. These small ups and downs, or retracements, present trading opportunities for Forex swing traders.

Swing trading differs significantly from both news trading and position trading. News traders and Position traders are all about fundamental forex analysis essentially. Swing trading is basically about technical analysis. Many Forex traders like to define swing trading in terms of its duration, either one to four days or two to five days. Though it gets a hint regarding swing trading, this definition misses the bigger picture.

Primarily, swing trading is about exploiting the opportunities in the forex market, where the rise and decline of one trend can occur repeated. Therefore, swing traders use different methods of technical analysis to help detect the small movements, profitable though.

If the trend has developed already in the Forex market, swing traders can simply trade the retracements. In a trend, this could mean trading
pullbacks in the direction of the trend. In a sideways market, swing traders can trade oscillators between support and resistance levels. Swing traders do generally hold trades within a few days, and they choose a short-term timeframe for Forex charts analysis, 1 hour or 4 hours’ charts, typically.