How to create forex swing trading signals like a pro

Forex swing trading signals are the most effective signals. No matter what type of trader you are, scalper, position trader, or day trader, you must acknowledge that swing trading is the most time-saving and less-pressure technique.

How to create forex swing trading signals like a pro

We find many lucrative advertisements for signal services that sell swing signals, and traders also buy them hoping to make a lot of money following these signals. I am not saying that these signals won’t work. Instead, I will insist that you can follow a good signal service if you have less time investing in learning trading or a day job at the office. But who wants to know how these professional service companies produce effective swing signals and their all secrets? I am here. I will reveal some techniques following which you will also be able to create swing trading signals.

Forex swing trading signals in a plain chart

No fancy indicator. No complicated trading method! I will show you how you read the market and produce swing signals with general trading knowledge. But remember one thing, the market does not trend all the time. Rather, the market takes a rest most of the time, and we call that choppy market. When the market moves or gets volatile, we call that a trendy market. Most of the effective signals are generated in trendy markets. So you must be patient if you wish to generate forex swing signals. It would be best to wait for the market to form swing points. Lower high and lower low are our focus points. 

Forex swing trading signals for sell rules

Forex swing trading signals for sell rules

We will only place a sell trade on breaking of lower low points. Remember, traders, make a major mistake here. They try to sell on lower high points. But we won’t make that mistake. Rather we will wait until the price breaks the lower lows. We need another indicator which is the default. RSI indicator. When place trades, just check whether rsi is between 20 and 80. If rsi gets above 80 or below 20, then we won’t place any trade.

You need to understand the market properly. Just look at it here market falls sharply but rises slowly. That means buying pressure is weak, but selling pressure is strong. Just think that if you enter the first time or second time when lower low breaks, how many pips would you pocket? Ok, let me show you this whole broad picture more clearly.

Screenshot 38

Check that if you take a sell position for the first time when the market breaks lower, then how easily can you book your 1:1 profit target. You can scale up and increase your profit every time by entering a sell position when the market breaks lower low. Look rsi indicator is showing its value is between 20 to 80—a perfect scenario for us.

Forex swing trading signals for buy rules

For buy trade, just follow the opposite rules. Enter the market on breaking the higher high. Your stop loss will be set at a higher low. RSI indicator’s value should be between 20 to 80.

Forex swing trading signals for buy rules

Follow the rules when you create Forex swing trading signals

  • Never place trade going against the trends.
  • Always make a trading plan before entering the market. Remember your trading plan will save you from making a loss.
  • Never use more than a 3% balance of your overall capital.
  • Never use too much leverage. Remember, leverage is a double-edged sword. It can eat up your all balance just in a few trades.
  • Don’t think in advance and enter the market when there is no trade setup. If the price doesn’t break Lower Low, don’t enter a sell trade. If the price doesn’t break higher high, don’t enter a buy trade. Always wait for the market to confirm that there is a trade!.
  • Many traders, when they make consecutive profit forgets about stop loss. They think they can now trade without stop loss and start trading without protective loss. And guess what? They lose money. So if you want to stay in this market for a long time, then always use a stop loss.
  • Don’t use a target lower than 1:1.

Should you spend cash for buying Forex swing trading signals

If you follow the rules I stated above and trade with this strategy attentively; then I don’t think you need any signal service. You will be able to produce swing signals very easily. But if you have no time to produce your signal, you can buy some service. According to my research, elite signals would be the best choice for you, from where you can buy profitable Forex swing trading signals.

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David Roads is a full-time trader. His trading style is based mostly on swing trading and Day trading. He's the Chief Analyst of parkingpips & contributor to numerous finance journals. David Roads has 15 years of experience working with hedge funds, banks & investing companies. He has a Prestigious Chartered Financial Analyst (CFA) degree and worked as a financial advisor and investment analyst before escaping the "rat race" to focus on trading full-time. David Roads has Deep expertise in news events, market reactions, macro trends, economic themes & price action.