A trading strategy should develop based on the trader’s personality. People who love to trade with low risk and execute less trade should go for a swing trading strategy. To them, scalping will be the most aggressive strategy. Most importantly, they will not understand the random execution of the trade associated with the scalping strategy. However, new investors in Australia might face some difficulties in understanding the swing trading method. Due to their lack of knowledge, experience, and skills, they will fail to speculate on the price movement properly.
Learning to use the swing trading strategy is not so hard. If you follow the basic rules mentioned in this article, you can expect to become a professional swing trader.
Swing high and swing low
The first thing which you need to learn as a swing trader is a swing high and swing low. A swing high is such a price zone that was not tested in recent times. On the contrary, a swing low a specific price level where the price most likely to find support. Based on the swing and swing low, the professional finds the retracement point of the trend. Though you can manually find the retracement phase of the major trend, the pro traders prefer to use the Fibonacci retracement tools.Continue reading