Swing Trading

2 days ago, I came across this post http://www.forexindicator.org/forex-swing-trading-strategy-explained.html

After analysing the currencies history, I modified the strategy slightly as below.

Indicators:

• trend line
• MACD

Time Frame: 4hr/daily (because I am working)

To me, I am comfortable enough with those 2 elements. I don't like to see a messy chart.

Trading plan:

1. Draw a trend line
2. Enter when the price broke the trend line and MACD crossed above/below the zero line
3. Set SL at the recent resistance/support before the breakout
4. Set TP at previous resistance/support
5. Set Trailing SL accordingly either the difference between SL & open price or half of it

Ok now I will give some examples based on history

EUR/USD

ok as you can see, price broke the trend line. MACD crossed below the zero line. my SL is 150 pips.

TP is about 300 pips. Trailing SL is 70 pips. Let's look on what happened next.

Price did go down about 200 pips and then goes back up. Is that a good news or bad news? Its good!! I managed to secure at least 140 pips because of trailing SL.

GBP/USD

Price broker the down trend. MACD crossed over the zero line. SL is 100 pips. TP is about 180 pips. Trailing SL is about 50 pips. Let's see what happens next.

Price hit TP which is about 180 pips. But because I set trailing SL at 50 pips, it got hit. But its ok. At least I secured 80 pips.

USD/JPY

SL: 200 pips. TP: 700 pips. Trailing SL: 100 pips. Let's see what happen next.

 It got stopped out at about 82.15 because of Trailing SL. How much profit? 125 pips. not bad right? Anyway, it continued it downwards movements after that.

USD/CHF

SL: 130 pips. TP: 320 pips. Trailing SL: 130 pips.

Let's see what happened next.

It is currently on floating of about 250 pips. Is that good or what?!

AUD/USD

SL: 130 pips. Trailing SL: 130 pips. For this trade, I did not set any TP as I don't know where to place the TP. Let's see what happened next.

Snap!! The price move back upwards. Lost 130 pips from this trades. Its ok ~ :)

EUR/CHF

SL: 140 pips. TP: 615 pips. Trailing SL: 140 pips. Let's see what happened next.

The price hit trailing SL. 170 pips from this trade. Not bad to me.

EUR/GBP

SL: 50 pips. TP: 90 pips. Trailing SL: 25 pips. Let's see what happened next.

It hit Trailing SL. About 25 pips from this trade. The price moved upwards back after that. Its good that I secured some profits.

EUR/JPY

SL: 150 pips. TP: 1390 pips. SL: 150 pips. Let's see what happened next.

Trailing SL hit again. About 250 pips profits.

In conclusion, out of 8 trades, 1 trade lose. Total P/L is +900+ pips.