Swinging (Advanced Mode)
Swinging on a 1 hour and 4 hour and daily charts along with weekly charts
and monthly charts.
Every 4 hours on 4-hour time frame chart if you live in New York you go off
9am, 1pm, 5pm, 9pm, 1am, and 5am
Since I am on CST you go off 8am, 12pm, 4pm, 8pm, 12am, 4am for the
candles to close and start a new candle on the 4-hour chart time frame.
Let’s start with Indicators first.
Top Main Window – All Default Settings on Every Indicator I Use.
Moving Average – 10 SMA (Simple moving average)
Bollinger Bands – Pay attention to breakouts on upper and lower bands and
candle sticks patterns in between the Bands.
Parabolic SAR – dots above indicates downtrend, dots below indicates
uptrend. You can follow the dots every 4 hours on a 4hour timeframe chart.
Fractals – arrows point down (indicates uptrend) arrows pointing up (indicates
RSI – Relative Strength Index which is High(Overbought) is 70 and
Low(Oversold) is 30
MACD – paying attention or curving up and down on higher time frames
Stochastic Oscillator – 100 is overbought and 0 is oversold
Momentum – follows RSI on direction and movements of candles.
Advancing into swing trading can be difficult first but first pre-analyzed in an
hour before the sessions opens such at New York, Tokyo and London.
There’s no point looking at Sydney sessions because you end paying high
spreads right away until the overlap with Tokyo opens. Make sure you pre-
determine the next trend to follow.
For example, if USDJPY is up trending in New York Sessions. Will it keep
up trending for Tokyo? Chances are more than likely.
Because New York sessions is the beginning of a new session, not London.
Always remember that New York sessions will start the new day since
everything revolves around the U.S. Markets and U.S. Dollar Index.
Ensure that when you are swinging for that long especially for 4-6 hours there
will always be retracements. Retracements on any trend can be unpredictable
so if you want to set a stop loss to be in profit you should do so.
If you don’t want to set stop loss, then have a mental stop or a certain price
target you want to hit to take profit.
I would shoot for profit taking versus shooting for the amount of pips I want
Each session any currency pair trends can change due to red news or political
events in that session. (So, make sure you read up on the economic calendar.)
Don’t ever swing a trade before the red news hits or on holidays.
You should know the first hours of the sessions you want to swing and stack
positions on that currency pair. For example, it’s Tokyo Sessions and you are
on GBPJPY and EURJPY and USDJPY. These pairs are correlated together
most of the time unless their base currency is down in value against the Yen.
Now especially for the first 2 hours of each sessions you want to swing and
ride the trend for until the new sessions start, and you take profit in case the
new starts a trend reversal, in most cases it does. If we are swinging from
Tokyo to London Sessions, you have to anticipate red news and trend
reversals when Tokyo overlaps the first of London.
Even when London overlaps with New York Sessions. So, whatever went up
last night will end up falling down during the day. The longest trend I seen
nonstop is 2 sessions together almost 12 hours non-stop with small
retracements on any given currency pair. There is no way they would let any
currency pair go up or down forever, I have not seen that happen. Any
swinging requires retracements just like going up the mountain you go back
down and then you back up again.