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- CRAZY Swing Trading Strategy For FREE
CRAZY Swing Trading Strategy For FREE
Chill While You Make Profits
Dear Traders!
Swing trading is considered one of the most lucrative ways of trading as it requires minimum screen time and maximum returns compared to any day trading strategy. Swing trades are typically held over several hours to several days and involve sophisticated risk management and trade management techniques, including using a trailing stop to maximize profits.
Today, I will teach you a simple swing trading strategy that you can use across various financial instruments. This swing trading strategy will use the Relative Strength Index (RSI) divergence to find entries. In simple words, RSI divergence means when the price makes a new higher high or lower low, the RSI indicator does the opposite by making a new lower high or higher low, indicating a reversal.
Now, let’s go over the process of how it actually works.
Swing Trade with RSI Bullish Divergence :
As you can see, when the market creates a new higher low (higher than the previous low), but the RSI creates a new lower low (lower than the previous low), it indicates a bullish divergence. In this case, right after the divergence and first candle close, we buy with a stop loss below the lows and set the take profit twice of the stop loss. This is set and forget trading strategy for optimal performance, but if you could figure out a way to trail your stop loss with new higher lows, you could gain huge risk to rewards.
Swing Trade with RSI Bearish Divergence :
As you can see in this trade example, once we see the price making a new higher high but RSI making a new lower high at the same time, we identify it as a bearish divergence, which means the price is about to reverse from bullish to bearish and we sell right after the divergence and first bearish candle close, with a stop loss above the recent high and take profit twice as the stop loss. In addition, once you gain experience, you can use a trailing stop to maximize your risk and reward immensely.
Happy Trading!!!
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