If you want to become a successful swing trader it pretty much is a done deal that you have to become an expert at technical analysis in order to time your swing trades correctly.

It really is not that difficult if you have the right background education and the right swing trading indicators.

These are the swing trading indicators that you need:

• A trend indicator - you need to understand and be aware of the current trend and know if your trade is with the trend or against it
• A cycle indicator - you do not need to be watching the markets for very long to see that the market trades in cycles, some are clearer than others, but you must time your trade to co-inside with the cycle tops and bottoms for maximum profit and minimum lossess
• A momentum indicator - this is the piece of the puzzle that the vast majority of traders never get or are even aware of - markets have momentum and will only turn when the momentum starts to reverse and decrease, you must trade with a momentum indicator

Thats basically it, master these indicators and you can build a very effective swing trading system, if you would like to skip years of trial and error and research you can use our swing trading indicators that have been designed by an expert trader:

>> Swing Trading Indicators

Forex Swing Trading

The Forex market is a good market to swing trade, for a few reasons:

• It can be quite volatile
• There are at least six major currency pairs to trade so there is always opportunity
• It is very liquid
• It responds well to technical analysis

If you learn to swing trade stocks or futures the same technical analysis can also be used for the Forex market

The following simple method will get you started in swing trading Forex:

• Make sure that you have charted and drawn all the significant support and resistance lines, both horizontal and trend lines. Check at least the daily, 1 hour and 15 minute time frames.
• Watch and monitor the momentum of the forex pair as the price approach’s the support and resistance lines. You are looking for signs that the momentum is decreasing significantly, or reversing when getting close to the lines.
• Use a 5 period and 15 period simple moving average crossover to signal that the trend is reversing, along with the momentum reversal this is a good entry point.
• Have a target in mind before taking the trade, this could be a nearby support or resistance line, the edge of a Bollinger band, or when the 5 and 15 moving averages cross over again.

I’m going to give you a big secret to trading, in fact this one of the biggest secrets that even many so called professional traders don’t understand.

Many traders try and use the Stochastic Indictor as a momentum indicator, in fact many call it a momentum indicator. The truth is that it is a very poor momentum indicator because it is range bound, it can only go between 0 and 100, whereas momentum has no range limits.

What often occurs is that the stochastic indicator will hit 90-95 and many say it is now over bought, time to sell, but because the momentum is still strong the price keeps increasing, and it becomes a bad trade.

This is a big mistake that they continue to teach at all the newbie trading seminars!!!

If you want to use the stochastic indicator as a momentum indicator only use it between about 25 to 75, outside that range you can’t trust it.

The good news is that there is a very simple momentum indicator that is very accurate and easy to setup and use, lean more about it here

Click Here To Get Your FREE Five Day Video Trading Course

One of the most common trading chart patterns that virtually every trader knows, amateur or professional is the the double top and the double bottom.

Many try to trade these patterns and often fall for the trap, and lose big time if trading without a stop loss. So what is a double top or bottom?, it is simply when the price reachs the same price point as it did previously and pulled back.

The theory being that the market tested the price point previously and decided it was either too high or too low (in the case of the double bottom), so at the 2nd attempt at the same price point it is a sure thing that it will pull back again, so there is the trade setup.

The problem is that if you look carefully at long trends, either up or down, you will see that both are a series of failed double tops and bottoms, sure eventually it will reverse but it may not be a double top/bottom pattern.

So what is the problem with this this trading pattern?, the answer lies in the fact that in trends there is momentum in the trend which tends to breakthrough the double top/bottom.

At a true double top or bottom the momentum in the stock, futures or Forex has to die out and reverse otherwise it will break the pattern and carry on the trend, trapping the amateur trader.

So how do you monitor the momentum?, while there are some momontum indicators out there the one which I use in my trading is based around the MACD indicator, but in a very special way.

In fact this momentum technical indicator is so good I would not dream of trading without it. The best part is that it is available on virtually every charting service or software because it is based on the Moving Average Covergence Divergence (MACD) indicator.

Learn more about this momentum indicator and how to trade double tops and bottoms correctly:

Momentum Trading Course

You really should learn as much as possible about momentum trading if you are interested in:

• Double Bottom Chart Pattern and Patterns
• The Double Bottom Forex Pattern
• A Double Bottom Formation Pattern
• Double Top Charts and Chart
• The Double Top Formation
• The Double Top Pattern

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