A Relatively Simple Trading Methodology
Approach to Trading
& Forex Markets...
We have been using this sound trading method to trade the commodity markets for some time now. The trading method is basically simple and easy and can be consistently profitable.
. . . This simple but powerful commodity futures trading methodology involves buying higher swing-lows and selling lower swing-highs. Also known as swings or pivot-points.
A definition of these swing-highs and swing-lows is appropriate here:
- A swing-high is a high bar with lower bars on both sides of it.
- A swing-low is a low bar with higher bars on both sides of it.
- The more lower bars to the left of a swing-high the better.
- The more higher bars to the left of the swing-low the better.
That makes the swing-highs and swing-lows even more significant and presumably more powerful swing points. However, only one bar on either side is acceptable (but two or more bars to the left are typically stronger signals).
How To Make Money Trading
The Financial Markets Ezine &
Regarding All Money Matters
Including Real Estate & Loans
This interesting trading methodology requires two (or more) consecutive swings, with the second one being a higher swing-low than the preceding one for a buy. Alternately, the second swing-high must be a lower swing-high than the preceding one for a sell.
The long trade entry takes place when your commodity broker enters the market for you on a buy-stop, which gets triggered two ticks above the high price of the last bar (the bar following the swing-low pivot bar), for a buy.
The short trade takes place on a sell-stop at two-ticks under the low price of the last bar (the bar following the swing-high pivot bar), for a sell.
The short trade stop goes 6-ticks above the highest price of the last swing-high bar. You can make some really outstanding money using this simple, but very effective trading methodology. We love to pass along excellent resources for things that enhance wealth-building and this website is a great resource if you are looking to find an insurance agency nearby. Check it out.
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By David Stone
Blog About How to Make Money Trading, Financial Markets & Money Matters