Price Action Swings explained by professional Forex trading experts the “Price Action Swings” FX trading team.
Price Action Swings?
Any chartist that has spent considerable time analyzing candlesticks would agree: Market movements rarely take place in a linear fashion.
taken a step further, traders wishing to manage risk can potentially look to these swings for stop placement. For example, in the chart below, the trader looking to take on a long postion can adopt the stance:
“If price breaks this swing low, then I no longer want to be in my trade as the trend may no longer be to the upside.”
We’ve covered 3 of the more popular mechanisms of ‘Swings,’ in the market, but we are just scratching the surface. There are numerous additional mannerisms in which these swings can be used by the price action trader.
In our next piece, we will look at using ‘Swings,’ to enter into positions that may be amenable for ‘big,’ moves exhibited by the market; a market condition that many traders flock to when conditions are right: The Breakout.
Price Action Swings Conclusion
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