Swing trading strategy

STEP #1 (Move to the Daily Time Frame)

The daily time frame produces some of the most reliable signals. It makes sense then to use the
daily when swing trading the Forex market.
Be sure to use a New York close chart. Each session should close at 5 pm EST. If yours don't,
you aren't using a New York close chart.

STEP #2 (Draw Key Support and Resistance Levels)

Using the highs and lows in the market, draw the key support and resistance levels.
The two types of levels you should identify are:
Horizontal levels and, Trend lines

STEP #3 (Evaluate Momentum)

If the market is making higher highs and higher lows, it's in an uptrend.
If the market is making lower highs and lower lows, it's in a downtrend

STEP #4 (Watch for Price Action Signals)

Now that you've identified key support and resistance and evaluated the
momentum, it's time to look for opportunities.
During an uptrend, scan for buy signals from key support.
During a downtrend, scan for sell signals from resistance

STEP #5 (Identify Exit Points)

For bullish (buy) setups, use the next key resistance level. This is usually
the previous swing high.
For bearish (sell) setups, use the next key support level. This is usually
the previous swing low.
STEP #6 (Calculate and Manage Risk)

Last but not least, you need to calculate and then manage your risk.
Be sure to calculate your risk before you enter using this calculator: