When it comes to trading periods, different traders have different styles. Some traders prefer scalping, some prefer day trading, some prefer swing trading, and some prefer position trading. Different period styles each have their own strengths and weaknesses.
Scalpers prefer to trade on 1-minute or 5-minute charts and be in and out of the market within minutes. Day traders trade from 5 minute charts to 1 hour charts. These traders set the duration of each trade as he does not exceed 1 day. A swing trader trades a 4-hour timeframe on a daily timeframe. These traders trade within a week and sometimes he trades within two weeks. Position traders, on the other hand, trade on longer timeframes and have a time horizon of several months just like investors and traders at big banks.
While scalping and day trading have the advantage of having a large number of trades in a given period of time, they also have the disadvantage of being less efficient based on profit relative to the cost of each trade. Some forex pairs can cost a few pips to trade, but scalpers earn only a few pips per trade, so it can be counterproductive if the scalper’s accuracy is very poor.
Swing trading, on the other hand, has the advantage of very good efficiency based on cost per trade and potential yield. In fact, trading costs may not be an issue for many swing traders. It costs the same as a scalper or day trader, but you have the potential to earn 100 pips or more per trade.
This strategy considers a simple trading strategy that succeeds on the swing trading timeframe.
super trend
The Supertrend indicator is a reliable trend following technical indicator. In fact, it is a very popular custom technical indicator that many traders use for trading trend following strategies.
The Super Trend indicator is based on the underlying Average True Range (ATR) for identifying trend direction.
One of the most common ways traders identify trend reversals is through the use of ATR. Traders identify trend reversals by seeing how much the price has reversed compared to the average true range. For example, a trader may use his 3x threshold for ATR. A market is considered to be reversing if the price reverses more than three times the current trend.
The same idea applies to the Supertrend indicator. Plots a line against the direction of the trend with respect to price action. This line is based on multiples of ATR. If the price movement reverses against the Super Trend indicator and exits above the line, the market is considered reversed and the Super Trend line shifts.
A lime line below the price movement indicates a bullish trend and a red line above the price movement indicates a bearish trend.
Traders can use these indicators as trend bias filters. Traders can also use line changes as an indication of a possible trend reversal.
F Thief 2
F Plagiat 2 is a custom trend following technical indicator based on modified moving averages.
This indicator plots a moving average line that is very sensitive to price fluctuation movements. In fact, this line is very closely aligned with price movements. This makes it an ideal entry signal indicator based on short-term momentum reversals.
The plotted line also changes color depending on the direction of the detected momentum. The lime colored line indicates bullish momentum and the red line indicates bearish momentum. A change in line color indicates a possible short-term trend reversal and can be used as an entry signal.
trading strategy
The Super Trend F-Plagiat Forex Swing Trading Strategy is a simple trend continuation swing trading strategy using the Super Trend and F Plagiat 2 indicators.
The Supertrend indicator is mainly used to identify trends and trading directions. The direction of the trend is based on the position of the Supertrend line and the color of the line. It also checks whether it is creating a higher or lower swing point based on the characteristics of the price movement. Trades are made only in the direction of the trend.
The F Plagiat 2 indicator is used as an entry signal indicator. The entry signal is simply based on the color change of the F Plagiat 2 line, which usually coincides with a momentum reversal or swing point.
index:
Preferred timeframe: daily chart only
Currency pair: Forex Major, Minor, Cross
Trading session: Tokyo, London, New York sessions
Purchase transaction settings
entry
- The Super Trend Line should be below the price action and should be lime colored.
- The swing point of the price movement should go up.
- Enter a buy order as soon as the F Plagiat 2 line turns lime.
stop loss
- Place a stop loss on the support below the entry candle.
Exit
- Close the trade as soon as the F Plagiat 2 line turns red.
Sell trade setup
entry
- The Super Trend Line should be above the price movement and be red.
- The swing point should drop in price movements.
- Enter a sell order as soon as the line on F Plagiat 2 turns red.
stop loss
- Set your stop loss to the resistance value above the entry candle.
Exit
- Close the trade as soon as the F Plagiat 2 line changes to Lime.
Conclusion
The Super Trend F Plagiat Forex Swing Trading Strategy is a decent trend following swing trading strategy. It has the ability to produce consistent results when used in the right trending market conditions.
If your entries and exits are not properly managed, your returns may be lower than your stop loss is risked. However, traders who can enter at the right time will have the right risk-reward ratio.
Traders who tend to have lower yields due to minor reversals during pullbacks can utilize fixed take profit target prices rather than manually entering and exiting trades based on the F Plagiat 2 line. This could result in a more consistent risk/reward ratio. However, refrain from high-yield trades while the market suddenly moves in the direction of the trend.
Forex Trading Strategy Installation Instructions
Super Trend F-Plagiat Forex Swing Trading Strategy is a combination of Metatrader 4 (MT4) Indicator and Template.
The essence of this forex strategy is to convert accumulated historical data and trading signals.
Super Trend F-Plagiat Forex Swing Trading Strategy provides an opportunity to detect various peculiarities and patterns in price dynamics which are invisible to the naked eye.
Based on this information, traders can anticipate further price movements and adjust this strategy accordingly.
