Swing Trading: An Antidote for Frustrated Traders
The market continues responding the same way to certain situations, which is great for those who tap in and exploit the reoccurring behavior.
The collected market psychology is visible in the candlesticks, thus unique situations present themselves as price action patterns.
An example of a price action pattern is the rejection candle reversal pattern, which predictably manufactures the same response from the market as it has in the past many times before.
By using historical data and observing the past behavior of pin bars, we can start to identify low risk trading opportunities at key turning points in current markets.
As a swing trader, you will eventually be able to read the ‘herd mentality’ in the candlesticks and accurately anticipate future price movements based on observations in the past.
The Art of Swing Trading
We’re taking about the skill of catching trend momentum at the optimal moment.
A lot of ‘gurus’ say to take the breakout of previous swing highs or lows – I don’t like this approach because these recommended entry levels are consistent turning points in the market and are prone to breakout traps.