Jenna Arnold has always been fascinated by the stock market and the world of trading. Having dabbled as a part-time trader while at university studying English Language, she leveraged her insights into this world into a full-time career as a writer specialising in trading and broker reviews. Jenna joined TradersBest.com last year and now heads all of our trading content, working remotely from her home in Massachusetts.
There is more than one way to successfully trade forex. In fact, there are more ways than you can count. Different strategies suit different types of traders. Those without the time for day trading will likely adopt a swing trading style.
Swing trading is a style of trading that can be adopted for any market or asset but is very popular for forex traders. The style suits traders who are short of time and is a style that seems almost tailor-made for the use of trading signals. Let us explain how trading signals can benefit a swing trading strategy.
Forex trading signals will help traders take their forex trading to the next level. These signals are tools to improve your outputs and streamline your trading processes. Forex trading signals are a trigger to either buy or sell a particular currency pair based on a set of parameters. Signals can be created based on technical analysis or mathematical algorithms based on past market action.
Trading signals use a set criterion to determine the best entry and exit points of a particular market to make a predetermined profit. A signal will typically have a stop loss and take profit order to maximise profits safely and minimise potential losses.
Forex trading signals are delivered to traders via trading signal services such as AtoZ Markets Premium Trading Signals and can be incorporated into a swing trading strategy. AtoZ Markets, for example, can provide up to 15 forex trading signals per day to its customers. Alternatively, you can create your own trading signals which require a grounded knowledge of technical analysis and fundamental knowledge of the economy. Forex trading signals can be implemented manually or automatically – automated signals, known as bots, are perfect for streamlining trades.
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Forex trade signal example
If you have even a very rudimentary knowledge of technical analysis, you’ll be able to take one look at a forex trading signal and understand what is going on. Trading signals, while advanced in their mechanics, are actually written very simplistically. Just check out this forex trading signal example below:
Buy NZ/USD at CMP 0.9884 – SL 0.9870 – TP 0.9900
In this small amount of text is all the information you need to execute the trade produced by a forex trading signal. Breaking the signal down, you see a trigger to buy the currency pair NZ/USD when the current market price reaches 0.9884. Your take profit order is set to 0.9900, with a stop loss imposed if the price action drops to 0.9870.
In a single line of text, the trader knows when to buy, when to exit, and risk management options in place through the use of a stop loss. The beauty of trading signals is that you don’t necessarily need an excessive knowledge of technical analysis to use them. Simply pop this signal into a free trading account and you can measure the results before you implement it live. We’d recommend checking out our reviews of free demo accounts at TradersBest.
What is swing trading?
There are a few types of trading styles that aim to achieve a different goal but ultimately to turn a profit. One such style is known as swing trading. Swing trading is the concept of attempting to capture short-to-medium term gains over a period of only a few days to a few weeks. This style can be used for any type of financial instrument – be it stock, Forex, or cryptocurrency.
The primary tool for swing traders is technical analysis – a tool that can be automated and enhanced through the use of trading signals. That being said, fundamental analysis can be used also, especially in stock trading. A key component of swing trading is to hold a position longer than one session. However, no longer than a few weeks to a month.
The goal of swing trading is to identify a chunk of a potential price movement and take quick advantage before moving on – the key here is to only take a piece of the price movement before exiting and moving onto another opportunity.
Swing trading signals
Trading signals are another analysis tool at the disposal of swing traders. Signals services, that can be found by checking out TradersBest, can deliver trading signals that can identify chunks of trading opportunities. As swing traders want to make profit from small trends that can occur between major highs and lows, they’ll need to identify these price movements quickly. Trading signals can automate this entire process.
There are two types of trading signals that swing traders will want to seek out – trends and breakouts. A trend is a long-term market movement, but they can contain shorter oscillations. Breakouts, however, occur at the start of a new trend. When looking for trading signals for swing trading, you’ll want to see 5 key indicators: Volume, Moving Averages, Relative Strength Index, Stochastic Oscillator and Ease of Movement.
AtoZ Markets is well known for providing swing trading signals and any number of the daily 15 trading signals may very apply to this trading strategy.
How to use swing trading with forex
The forex market is the largest marketplace in the world. Naturally, there are more trading strategies than you can think of used each and every day. While each has their own advantages, swing trading is one of the most popular trading styles used by forex traders. Forex swing trading does differ somewhat from traditional swing trading in the sense that many proponents of the style use fundamental data.
Swing trading does lend itself to fundamental trading as it is common for fundamental effects on markets to take multiple days to generate price movements that will actually turn a decent profit. Forex swing traders will still place an emphasis on technical analysis to predict price movement – the use of trading signals is a great way to speed this process up by providing triggers from technical analysis.
Why use a swing trading strategy
If you’re a part time trader, looking for more flexibility with your capital management, or wish to focus minimal time on your trading, then swing trading is an ideal strategy. There is also the reduced stress of day trading.
With swing trading, you’re aiming to achieve far more significant profits than you would expect from day trading. However, like any trading style, swing trading is not a guaranteed money maker and traders need to take care when making trading decisions.
Advantages
Swing traders operate on a risk vs reward basis – a good motto to follow – and aim to make a favourable profit. For example, making $200 from a $100 risk isn’t acceptable for swing trading but an expected $300 from $100 is. The advantage here is that swing trading aims for a higher reward than there is risk. Risk/reward is also an important parameter of a quality trading signal.
Swing trading takes far less time to trade than day trading does, and you can maximise short-term profit by capturing the bulk of market swings. This style of trading is also advantageous as it typically purely relies on technical analysis which is a far simpler measure than fundamental analysis. Swing trading is also ideal for those who can’t spend the entire day trading, since you only need to analyse charts for a few hours each evening. You’ll also find you can set smaller stop-losses when swing trading and it allows traders to simply dip in and out of markets with relative ease.
Disadvantages
Like any other style or strategy, swing trading does have its downsides. Markets, especially highly volatile markets like when crypto trading, can move dramatically overnight; a particular risk for those holding positions overnight like swing traders. You can wake up the next morning and see you have plummeted to your stop loss.
Those who wish to trade with leverage will often find that many brokers will not allow as much leverage as day traders. Swing trading also means your capital is tied up in a position for much longer than during day trading. There is always the possibility of missing out on a great asset too as you exit the trade for short-term profit when the asset may turn into an excellent long-term position.
Any style has its trade-offs and swing trading is a risk/reward in itself. Consider all the factors before deciding which trading style is best for you.
Alternative to forex swing trading
Swing trading isn’t the only way to trade forex. The other most popular form of forex is day trading. Day trading is a short-term strategy that sees traders buying and selling currency pairs within the very same day. The norm with this strategy is to execute multiple forex trades on the same day. It is not uncommon to make dozens of forex trades in a single day and to be trading in a number of different currency pairs.
Day traders take advantage of incremental price movements that can occur during a 24-hour period. Like swing trading, traders also require knowledge of technical analysis to succeed. Day trading requires much more time to be applied to executing trades and watching those trades through to completion. As such, this style doesn’t suit part-time traders or those who cannot invest their time fully into trading. To learn more about advanced styles of trading forex, you should head to TradersBest for extensive learning materials.
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Best trading signals provider
The best place to find leading trading signal service providers is at TradersBest. Our experts at TradersBest are highly experienced and go above and beyond to seek out and identify the very best trading signal providers. We only recommend service providers that produce quality trading signals that meet the strict criterion of a quality product – that is clearly defined entry and exit points, risk management components and an excellent delivery.
The best trading signals providers offer a service that is fast, reliable, and produces frequent trading signals. There really is no point signing up to a trading signal provider if the signals come few and far between. For excellent performance, frequent trading signals and extensive flexibility and diversity, we recommend AtoZ Markets as the best trading signal service online.
AtoZ Markets Premium Trading Signals
AtoZ Markets provide both algorithmic automated trading signals and hand-crafted manual signals, developed by advanced mathematics and highly experienced market experts. The AtoZ Markets Premium Trading Signals subscription service allows users to grab up to 15 trading signals per day and include a wide range of financial instruments – not just forex! Although, with that being said, the forex trading algorithms are some of the most advanced we’ve ever tested at TradersBest.
AtoZ Markets boasts an impressive success rate of over 70% – exceptional numbers considering 60% is the minimum you should really be accepting online – and AtoZ Markets likes traders to see large profits since they operate a high risk/high reward methodology for its signals. Traders can choose to receive their daily trading signals via email, SMS, the dedicated mobile app, or from the Telegram group. With so many daily trading signals on offer, AtoZ Markets is the perfect signal provider to complement your swing trading strategies.
Traders can sign up to a 14-day free trial and non-subscribers can still obtain one free trading signal per day. We’d also highly recommend the auto/copy trading feature for new traders who require a leg up.
Conclusion
Swing trading has become one of the most popular trading styles in the forex market. By attempting to capture small-to-medium sized chunks of price movements, traders can make fast profits whilst minimising risk by not overexposing their position.
Swing trading typically has a low risk/high reward approach and can often be more profitable than typical day trading. Highly volatile assets should be avoided to mitigate overnight risk but swing trading is still an ideal strategy for part time traders.
Trading signals are ideal for swing trading strategies, especially if you sign up to a trading signal provider like AtoZ Markets that produces frequent trading signals. The key to successful swing trading is in how quickly a trader can identify price movement. Trading signals are a perfect tool as it takes much of the leg work away from the trader.
Forex Swing Trading Signals – FAQ
📊 What is swing trading?
There is more than one style of forex trading that can be successful. Different traders will refer to different styles of trading and it is entirely up to the trader to determine which style best suits their skills and goals. Depending on the chosen style, a trader will employ different time zones, aim to use different technical tools, and execute different types of trades. Swing trading is one of these unique trading styles that not all traders will use.
☀ Is swing trading more profitable than day trading?
When it comes to making a profit in the trading game, there are many factors that must be considered. The profitability of any one trading style can vary between its uses, the skills of the trader and particular market conditions. No single trading style can be said to be more profitable than the other because there are too many factors that affect profitability. One trader may be very successful as a swing trader, whilst others may not be very useful at all.
👇 Is there a downside to swing trading forex?
There is no such thing as entirely risk-free trading, and everything in this world is made up of pros and cons. Selecting a trading style is a mixture of risk versus reward and one trader may be willing to take on more risk than another. Therefore, any downsides of a trading style may be considered when choosing to use any one particular trading style.
💻 Can I get free swing trading signals online?
In 2021, there are a near-endless supply of trading insights, knowledge, educational tools, and ways to get assistance trading any financial instrument – be it Forex, stock, crypto or options. Thanks to modern technology, traders are in closer contact with experienced professionals, other traders and advanced tools for trading. Not all financial services and products are paid and traders can find free help if they look in the right places.
📉 What is the difference between fundamental and technical analysis?
There are multiple ways in which traders can seek out important information regarding any financial instrument and the amount of information available is incredibly vast. What type of information that can be used for a particular asset will be determined by its class and market. For some, a deep understanding of the factors that affect it will be required, whilst for others a strong understanding of its technical history will be needed. The best way to learn about these two types of analysis is by heading to TradersBest.
