Swing trading is a style that tries to capture gains in a stock within one to four days. The method employs technical analysis to look for the short-term price momentum.The following are basic rules of the swing trading.
The concept of the Bollinger bands was introduced by John Bollinger in the '80s. It quickly became one of the most commonly used tools in market analysis. Bollinger approach employs three bands - an upper, a middle and a lower band that are used to highlight extreme short-term prices in a security. In our case we are talking about the price of a currency. However, the theory is applicable to the general stock market.
The automatic trading and trading algorithms are common for contemporary forex traders. Neural networks (NN) are gaining popularity within the forex trading community due to their simplicity and efficiency. That is why it is important to understand the principles of NN and recognize their limitations. It is equally important to dispel the myths and misconceptions about the NN as the supernatural force capable of predicting the future.
The slippage is a difference between the price level we ask and the level we get during the execution of your trade. These differences are inevitable due to continuously changing market and will occur at the times of strong instability, for instance, due to important economic news or when the active trading hours of forex sessions overlap. The slippage can also occur if the broker with floating spreads suddenly changes it.
The success trading includes three components : 1) A set of High Probability Indicators (HPI) to produce High Probability Trades, 2) Consistent implementation of your trades 3) Appropriate management of those trades.