Forex Education

Trading industry knowledge. Learn forex trading, investing in stocks, commodities.

  • Home
  • Choose a broker
  • Brokers Rating
  • PAMM
  • Investment
  • Affiliate
  • Contact
  • About us
You are here: Home / Education / Intraday Swing Trading

Intraday Swing Trading

by Fxigor

ShareTweet

Intraday swing trading is a strategy for traders trying to buy from the bottom or sell from the top against the current several hour’s trends. The best performance traders can get if they follow a major time frame trend (H4 or daily chart) and trade swing trade against the hourly trend. But a trader can buy or sell against the major trend if the price is on an important level (for example, yearly or monthly low or high).

Intraday swing is a trading strategy that can use trend trading, swing trading, and day trading combination to enable the trader to buy or sell any financial instrument after a pullback. Swing trading does not mean only to buy or sell against a major trend. But we will talk later about complicated intraday swing trading strategies.

In the first step, we will try to analyze major types of trading.
The best strategy for beginners is to study these three main active types of trading. These types of active trading are;

  • Day trading.
  • Swing trading.
  • Intraday Trading.

The distinguishing factor between these three types of trading is the duration. Each represents the length of time one holds an open market position. Let us study in detail the difference between the three.



What is Intraday swing?
Intraday swing represents a trading strategy where the day trader waits for a pullback of the major trend, enters into trade, and keeps trade for either a few hours (intraday trading) or several days (swing trade).

Intraday Trading

This is the trading activity that takes place within a concise time frame, as the name suggests, “intraday.” Intraday traders are mostly referred to as day traders. The trading period is mostly in the form of seconds, minutes, or an hour time. The intraday traders always open and close the trade on the same date to capitalize on rapid fluctuation in exchange rates.

The intraday activity comprises very many trade strategies since they are mostly rooted in technical analysis. These strategies include;

Scalping: scalping is a trading strategy to generate profit from a slight price change in the stock price or currency value. Traders involved in dealing with several trading units believe that the slight change in each unit of exchange’s price leads to a substantial amount at the end of the day when dealing with several trading units. Traders practicing this method are called scalpers. They always employ an exit strategy to evade possible losses that may be incurred from continuous trading.

High-frequency trading (HFT): High-frequency trading is a kind of algorithmic trading mode that involves high-speed trading with high turnover. This is done mostly by the use of developed electronic systems integrated with financial software. This kind of trading system always works with short term investments.

Order flow analysis: this kind of analysis can be described in the form of a game. This is a game within a game’. This is the trader’s strategy following the game rules but not based on other traders’ market decisions.

Intraday strategy always relies on these factors so that its small profits can be used to realize maximum profits by limiting the risks.

Day trading (short time trading)

Contrary to intraday trading, day trading involves dealing with high volumes of trading units, identified early in the trading day and then executed session by session. The popular types of trading for daily time frame are;

Trend following: this is taking advantage of short-term, medium, or long term moves that appear to be playing out in various markets.

Momentum: momentum trading is when the trader acquires and sells depending on the recent strength on the price strength.

Range: this is the strategy where a trader considers over-bought and over-sold areas. They buy the oversold and sell the overbought areas.

The day trading markets are described by inherent volatility and range, while intraday trade relies mostly on liquidity and daily analysis.

Swing Trading

Swing trading is the act of buying and selling securities that focus on profiting off changing trends in price action. The determinant the swing trading is that the positions are held through an independent session at a time. The trading takes place everywhere between six days or several weeks. The swing trader needs to adhere to the following considerations.

Carry and finance costs: this is the cost of storing physical commodities, which can also constitute insurance costs.

Systematic risk exposure: this is the risk that can affect the entire commodities in the market. It can also be referred to as “undiversified risk.”

Account for extensive margin requirements: extensive margin is the range to which the resource is applied or utilized. An example is when several individuals carry a certain task that falls under a certain extensive margin.

Swing trading is characterized by its popular application in the determination of agricultural futures and forex. Central bank policies, seasonality, and corporate earnings usually employ this policy in conducting their trade operations.

The trading type is the key factor depending on the available resources, market size, and personal traits to achieve the market goals and success in trading. However, any type of trade is applicable and productive.

Intraday trading vs. swing trading

The difference between intraday trading and swing trading is that intraday trading represents trading that makes many trades in a single day, and swing trading occurs over days or weeks.

Intraday Swing strategy explanation

Daily personal analysis is also a key factor in trading. Since you are the only important factor in your business, you should make sure to analyze your daily activities, daily feelings, and deviation in profit-making and note down in your daily diary. Having these basic factors at hand, one can explore different trading strategies in the trading field. Beginner traders can encounter most difficulties in deciding the kind of trade methodologies to use.

This struggle to discover different ways to succeed depends on how often the new trader research these three trading activities. For the active futures trader’s research on the variety of analysis and methodologies towards the product market and exchange rates is very vital, since it is used in important decision marking like to buy and when to hold the commodity to the next peak period.

Intraday Swing strategy description:
Let us see in September 2019 on GBPUSD chart bullish several days major trend.

swing intraday major trend

If we see on 30 minutes chart, intraday several hours bearish trend, we can wait for the price to pull back and then make a buy order like on image :
swing intraday short time bearish trend

This is an example of intraday swing trade when we trade against an intraday trend and follow a major several days trend.

Conclusion

 

There are so many ways to practice disciple in trading. The most important and the first stage of trading discipline is having a trading plan before engaging in any activity. Also, the trader must centralize all the responsibilities to himself/herself. You should be ready to face any situation and anything that might emerge against your trading activity. Always view these risks at all angles, especially from the extreme scenario. This will help you to be bold enough to face any negatives that might come on your way.

Intraday swing is just one of the strategies that traders use very often in trading. If you trade against a major trend, you need to be careful because the price needs to be on a fundamental level, and you need to see the reaction to that price before you enter into trade.

  • Author
  • Recent Posts
Fxigor
Fxigor
Trader since 2007. Currently work for several prop trading companies.
Fxigor
Latest posts by Fxigor (see all)
  • What is Recapitalization of a Company?
  • Will Google Stock Split in 2021? Google Stock History.
  • What is Swap Fee in Forex?

Related posts:

  1. What is The Best Time Frame for Swing Trading?
  2. MACD settings for intraday trading
  3. What Does Time Frame Mean in Forex trading?
  4. How to use Volume Weighted Average Price VWAP strategy for NIFTY trading ?
  5. MBFX Timing Indicator – Free download MT4 Indicator
  6. Engulfing Trading Strategy – Case Study
  7. What is the Best Time Frame to Trade Forex?
  8. What is Pivot Point Trading?
  9. What is Naked Chart Trading?
  10. How ATR Stop Loss Strategy Can Improve Your Trading?
  11. The Best Divergence Trading Strategy

Filed Under: Education, Forex strategy

Website categories

Main Forex Info

  • Forex Calendar 2020
  • Forex Bank Holidays Calendar 2021
  • Non-Farm Payroll Dates 2021
  • Key Economic Indicators
  • The Best Forex Brokers Ratings List
  • Top Forex brokers by Alexa Traffic Rank
  • Forex Brokers with Free Initial Deposit in 2020
  • Brokers That Accept PayPal Deposits
  • What is PAMM in forex? Are PAMM Accounts Safe?

Main navigation:

  • Home
  • About us
  • Forex brokers reviews
  • MT4 EA
  • Education
  • Privacy Policy
  • Risk Disclaimer
  • Contact us

Forex social network

  • RSS
  • Twitter
  • FxIgor Youtube Channel
  • Sign Up. Get newsletter.

Spanish language – Hindi Language

Spanish language website Hindi language website
Risk Warning: Trading leveraged products such as Forex and CFDs may not be suitable for all investors as they carry a high degree of risk to your capital. Trading such products is risky and you may lose all of your invested capital. Before deciding to trade, please ensure that you understand the risks involved, taking into account your investment objectives and level of experience.

Copyright Forex.in.rs 2007