My Favorite Swing Trading Strategy

By: Cory Mitchell, founder of

Whether I'm day trading or swing trading forex (and other markets as well), I frequently use the method described below. It's a price action trading method, with trendlines and trend channels used to help establish entry points and potential targets. Here's the basic strategy; adjust it to your liking or add your own indicators to help you implement it.

Before Placing Trades

Before placing a trade, calculate your proper position size. Position size is calibrated for the trade so you are risking 1% (or less) of your account capital on each trade. All trades taken must have at least a 2:1 reward:risk ratio, but often we'll end up with trades that have a 5:1 or 6:1 ratio (more on that in a bit). If risking 1% of your account, you stand to make at least 2%, but often 5% or more...that's 5% on your total account, not just traded capital (because our risk is also based on the total account). If you risk up to 2% per trade, your gains double.

Before commencing trade, note any significant economic data coming out over the next 24-hours. Avoid placing entries or stop loss orders close the current price right before a major news announcement, as this can cause slippage. Best to avoid those trades. Continue reading "My Favorite Swing Trading Strategy"

Want a Sure-Fire Forex Trade Setup? Look for a Triangle

Watch this quick educational video from an Elliott wave forex expert, Jim Martens

By Elliott Wave International

Last fall, the editor of Elliott Wave International's Currency Pro Service, Jim Martens, observed a beautiful pattern in the chart of the Japanese yen. This pattern, called a triangle in Elliott wave terms, offers a very clear outlook for the market.

What is a triangle? It's a corrective pattern, meaning that it moves in the direction opposite the primary trend. And, it's very easy to spot on a chart. Here's an idealized diagram of a triangle.

When a triangle ends, the old trend should resume. This allowed Jim to make a very clear forecast for the dollar/yen. Watch this 7-minute video to see the triangle he observed, and the outcome. Continue reading "Want a Sure-Fire Forex Trade Setup? Look for a Triangle"