This Week’s Swing Trading Review With Charts

This Week’s Swing Trading Review With Charts

Waiting for quality Swing Trade entries is like waiting for a bus…. After a long wait for anything remotely swing-able, 5 trades all turn up at once!

It’s certainly been a busy Week for both swing trading and day trading, but it’s time I really took action to cut out the day trading for all but the highest levels of volatility because although it can potentially be more profitable, it generally under-performs over the longer term and is much more time consuming.

In this review I’ll run a ruler over each swing trade taken or exited over the last Week.

AUD CAD

Original analysis can be found here.

I liked the daily chart even at the time I exited the trade but in view of the higher than average risk vs reward I became concerned with the intraday technicals eventually choosing to close the position after an hourly bearish engulfing candle formed (circled) bang on the double top whilst MACD produced a lower high. It has since recovered and moved on higher so could be a candidate for another swing long on the next pull back, but I feel my exit was the correct thing to do to preserve the small 18 pip profit that was on offer:

AUD NZD

Original analysis can be found here.

I enjoy trading this pair but it can be slow moving and can often take considerable time to deliver. The downside of this is that it’s one of the most expensive pairs to trade due to both the wide spreads and the financing (on shorts) due to the interest rate differential. Because of this I tend to exit positions at price extreme’s rather than waiting to be stopped out on a trailing stop loss. On this occasion I calculated 1.2938 as being a high probability area of support and closed out as soon as this level was touched for a gain of 172 pips. As you can see in the chart, 1.2938 did offer support and price has since reversed:

GBP:USD

To be fair, this trade was taken based on the analysis of one of the traders on my ADVFN trading forum which complemented my own analysis and made for a compelling trade. The entry was based on his system rather than my own (entry is circled). For now I have trailed the stop loss to 1.5420 but may look to lower it. The trade is still open and goes into the Weekend showing 180 pips profit:

GBP CHF

Original analysis can be found here.

This trade didn’t really fit the usual criteria of being a swing trade but it’s a pair I watch regularly and it’s break-outs often reverse to some extent. In this case it broke out of the 4 hourly range I’d been watching but soon retraced to test the top of that range. As the green 4 hourly candle was quickly rejected by the blue 20 MA I entered short with a tight stop loss just above that MA. Due to the fact the overall trend was still up I chose not to take any chances and closed the position when support was offered by the pink 50MA (circled) taking a 60 pip profit. As you can see, price did eventually continue to fall quite significantly and I’ll be keeping an eye on this to see if it’s a brief correction or first signs of a pending trend reversal.

CAD JPY

Original analysis can be found here.

There’s not much I can say about this. It was technically a perfect short entry at resistance (circled).All time frames looked good for the short side and now the move has begun I’m just keeping an eye on it to enable a quick exit if price does show signs of reversing. The longer term trend is clearly down, however it can consolidate sideways for many Weeks (Look at a Weekly chart) before making an impulsive move and it is possible my entry is too early in the longer term. I don’t want to sit in a sideways market for many weeks whilst paying financing on the position, nonetheless, the trade goes into the Weekend showing a 38 pip profit. Currently undecided on where to place stop loss but for now it’s set at 75.90 and I’ll look to tighten it up even more next Week.

So there you have it, a pretty sound Week overall which, from swing trades alone has given 250 pips banked profit and another 218 pips currently showing on open positions. Compare that to the overall loss of 80 pips I realised on Day trades this week, as well as the many hours spent on the day trading and it becomes clear that Swing Trading (or what I choose to call Swing Trading) is the healthier option….at least until volatilty and volume comes back into the Markets.

Hope you had a great trading Week and enjoy the Weekend.

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