WHAT IS FOREX?
Forex stands for foreign exchange also known as FX. Forex market is a global marketplace for exchanging national currencies. Forex market is global worldwide trading currencies from across the globe. The largest and most liquid asset in the world. In Forex trading you are trading against other exchange rate pairs. For example US/EUR they trade against each other as an exchange pair.
Swing/ Trend Trading:
Swing trading is a style which is centred around executing trades based on medium term market views. Swing trades are those which are normally held anywhere from several days, weeks or months. Trades which run for such periods of time are most often analysed first hand from a higher timeframe chart such as the 4 hour, daily, weekly and monthly. (More on timeframes later.)
Swing or position traders are generally looking to trade with the near-term daily chart momentum and typically enter anywhere from 2 to 4 trades per month, on average. Certain swing trading has been described as being a type of fundamental trading as many bank and corporate fundamentals generally require several days, even weeks, to sufficiently impact the market in a way which will allow traders to make a profit.
When you are trading in line with the overall trend, a swing trade setup on the 4-hour timeframe could be in the opposite direction to a daily trend. A trader who executes trades using a swing strategy will more often than not have a decent sized target a long side a fairly wide stop loss, thus allowing the trade to breathe. Risk management with these types of trades is vital. Swing trading is a great style for those who have other responsibilities and have limited time to spend sitting in front of the charts, a set and forget strategy that does not necessitate daily management. Specializing in both swing setups and short-term day setups. Our swing trade targets can often be anywhere up to 80-250 PIPs and is largely based on technical factors.
This style of trading can be very profitable if you know what you are looking at and where to enter the market. A trend trader is one who waits for the market to display a significant turning point on one of the higher timeframes and take advantages of these high-probability movements by looking for entries either at the start of the trend or jumping in at a significant retracement/resting point.
The direction of the trend is absolutely essential to trading and analysing the market. In the Foreign Exchange (FX) Market, it is possible to profit from both up and down movements, because the buying and selling of one currency is always linked to another currency e.g. BUY US Dollar SELL Japanese Yen.
Up Trend: As the trend moves upwards the US Dollar is appreciating in value.
Down Trend: As the trend moves downwards the US Dollar is depreciating in value.
Sideways Trend: Prices are moving within a narrow range.