Intraday swing trading is strategy when traders try to buy from the bottom or sell from the top against current several hours trend. The best performance traders can get if they follow major time frame trend (H4 or daily chart) and trade swing trade against hourly trend. But trader can buy or sell against major trend if price is on important level (for example yearly or monthly low or high).
Intraday swing is strategy in trading can use trend trading, swing trading and day trading combination in order to enable the trader to buy or sell any financial instrument after pullback. Swing trading do not mean only to buy or sell against 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.
These 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.
Intraday Trading
This is the trading activity that takes place within a very short 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, so that they can capitalize on rapid fluctuation in exchange rates.
The intraday activity comprises of very many trade strategies to be involved since they are mostly rooted in technical analysis. These strategies include;
Scalping: scalping is a trading strategy that is aimed at the generation of profit from the slight price change in the stock price or currency value. Traders who are involved in dealing with several trading units belief that the slight change in the price of each unit of exchange leads to the 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 mode of trading 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 strategy applied by the trader following the game rule’s but not based on other traders market decision.
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
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 advantages 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 sell 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 commodities in several different sessions. The determinant the swing trading is that the positions are held through an independent session at a time. The trading takes places 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, and that can also constitute insurance cost.
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.
To achieve the market goals and success in trading, the choice of a trading type is the key factor depending on the available resources, the size of the market, and personal traits. However, any type of trade is applicable and productive.
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 that you analyze your daily activities, your daily feelings and every deviation in profit-making and note down in your daily diary. Having these basic factors at hand, one can be able to 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 get out with success, depend on how often the new trader research these three activities of trading. 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 we see in September 2019 on GBPUSD chart bullish several days major trend.
If we see on 30 minutes chart, intraday several hours bearish trend we can wait price to pullback and than to make buy order like on image :
This is example of intraday swing trade when we trade against intraday trend and follow major several days trend.
Conclusion
Have you ever thought of hitting your life goals and living your dream life? Then you should find a way to commodity trading and trade control. Investing in time-saving businesses such as forex trading or money exchange is the way to go. This kind of businesses require keen and determine traders. Risk-taking is a constituent factor and that trading discipline is a vital virtue that must apply, unlike in any other commodity trading activity.
Before we focus on the three main types of trading, we need to familiarize with the trading environment, be part of the game and participate in any activity concerning trading, and also get engaged with the factors that blend to form the trading discipline.
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 in place before engaging 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 major trend you need to be careful because price need to be on very important level and need to see reaction on that price before you enter into trade. Winning ratio for swing trades is around 30%.
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