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Question: How much vital is it to know technical analysis for swing trading?

(Posted by: rocky9281 on 2008-06-17 08:35:13)

Posted by: daxxxxxxxxx on 2008-06-20, 13:55:15

The Swing Trading is a short-term oriented trading strategy with a trading period of up to three weeks. The philosophy behind the Swing Trading is that within a mid- to long term trend one can observe short term up- and down-trends. The aim is to exploit the up and down movements profitably. Read more in the WIKI for Technical Analysis:

Posted by: CaromCapital.com on 2008-06-17, 09:08:28

Really, its the only way you can swing trade. Swing trading involves taking advantage of short term price fluctuations, typically 1-5 days or a little longer. Fundamentals don't change over 1 to 5 days. A companies overall business structure doesn't change, the economy doesn't change, although of course news comes out during that time, but the only way to predictably and consistently swing trade is being astute at technical signals. Take your pick, charts, bands, etc. But some form of technical analysis is essential.

Posted by: Shelomo on 2008-06-17, 09:33:20

I totally agree with what the guy above said. But your leads to other implications... Currency trading is very difficult and technical analysis is vital if you are doing short term trading, each currency pair works in different ways so don't assume that one technical tool will work for them all. Enter currency trading slowly and don't rush in with money. The graph can be deceptive and you may think that you have a strategy that works but you can blink your eye and all your money has gone. A good starting place re: technical tools are moving averages, stochastic and lines of support and resistance. In my opinion, MACD doesn't work any more and Fibonacci is pie in the sky as far as I'm concerned. See the links below (look for 'whipsaw' in the wiki article)...

Posted by: Ted on 2008-06-17, 09:54:32

Swing trading relies 100% on technical analysis tools.

Posted by: Joshua on 2008-06-17, 16:10:37

True story... unless you decide to buy a trading system it's all TA. If you're interested I found reviews of the top 3 Forex trading systems: forex-tracer.the-perfect-solution.com/

Posted by: Focus on 2008-06-17, 22:30:04

Swing trading is essentially an outcome of the technical analysis itself.