FX Multiday Swing Trading with LC’s Cycle Projection

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  • May 30, 2014 at 6:49 pm #205780
    wangsta215
    Member

    Hi,

    Is anyone doing multi-day swing trading on the FX markets? I noticed the Daily Cheatsheet page has weekly cycle projections for all the FX pairs. LC, do you have more information on ways of incorporating the cycle analysis?

    Thanks

    W

    May 31, 2014 at 2:51 pm #206385
    Lawrence
    Keymaster

    My routine incorporates the weekly cycle projection for both time and magnitude.

    In the premium section you will find under Online Help there is the Tutorial section where I posted 2 tutorials on some basics on using the projections.

    Many members here prefer day trading over swing trading the forex markets. People often ignore the weekly swings completely. I prefer leaning on the weekly trend and collect easy payout 1 to 2 times on each pair a week over monitoring them closely. The fact that FX is way easier to trade at the swing level on 4 hours and higher timeframes makes FX majors better instruments to swing trade than markets like the Eminis or commodities.

    My monthly newsletter talks about the euro and I have made many good calls there (shameless self promotion) based on classic proper chart reading and STOPD. To get a better entry without waiting for the longer timeframe confirmation, I lean on the weekly cycle projection to find the important turns once euro hits the important price zones, like the ones I named in the newsletter.

    The best way to describe the concept is in Art of Chart Reading on Multiple Timeframe Bootstrapping Technique.

    Multiple Timeframes Bootstrapping Technique

    June 2, 2014 at 12:20 am #206387
    wangsta215
    Member

    LC,

    Thanks for the explanation. Since having a fulltime job, swing trading may be a better fit for me. I would also like to be able to PROFITABLE trade the opening hour on the indicies one day. Like your articles keep saying, its much easier to be a profitable swing trader (though you do need much bigger account I guess). I will read those 2 articles you mentioned.

    Thanks

    W

    June 2, 2014 at 3:24 pm #206388
    Lawrence
    Keymaster

    There is no point to day trade the indices (or forex) until you are pretty good with swing trading first.

    Focus on that and make it happen. Swing trading FX can make good money and that is all that matters.

    Once you have a good foundation and self-discipline developed from swing trading, you will probably understand yourself enough to figure out if you want to go for day trading or not.

    June 2, 2014 at 6:57 pm #206389
    wangsta215
    Member

    LC,

    Thanks for the heads up. I will focus on the swing trade and build equity. The goal is simply to double my income, then eventually to only work bc I want to work!

    My initial thoughts on incorporating the cycles is to look for turn areas (preferably with 2 dots of the same color close by) and to match that with confluent levels based on price. Initially I’ll be using confirmed entry (123, pinbar type) but eventually maybe move to limit entries. For your FX swing trading, do you prefer limit entries or confirmed (123/pinbar) type entries? I feel both can work (the key is the post entry money management plan) and I’ve tried both. Just right now I feel more comfortable with confirmed entries.

    Thanks

    W

    June 2, 2014 at 10:40 pm #206390
    Lawrence
    Keymaster

    Read my report on trend buy day. The example setup is a good example illustrating what a good bias can do.

    In general, if the trading setup you lean on has consistent bias over time, both confirmed entry or pullback / anticipation will work fine.

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