Swing trade strategy

Trend trading is one of the safest ways to benefit from the foreign exchange market. It is based on the fact that traders, like the crowd, create a mass movement, pushing out of the market all those who swim against the current.

It sometimes happens that, when opening a position within the day, the trader gets into an emerging trend and watches the gain accumulate as it develops. In this case, at the end of the day, there is a picture that gives a high potential for the continuation of the trend and indicates the advisability of moving the position through the night. Traditional short-term trading methods (scalping and intraday) require mandatory closing at the end of the trading session, which, on the one hand, minimizes the risk, but also reduces the potential return.

It happens that by opening a position intraday, the trader gets into an emerging trend and watches the earnings accumulate as it develops. In this case, at the end of the day, there is a picture that gives a high potential for trend continuation and indicates the advisability of leaving position overnight. Traditional short-term trading methods require mandatory closing at the end of the session, which minimizes the risk, but also reduces the potential return. However, there is a style of trading that combines both intraday and overnight trades - swing trading.