In this post, I am taking you through the most powerful swing trading strategy that will make you profitable. Just like most of my strategies, this one uses the fair value gap (FVG) concept, but ONLY on the 4h time frame.
EXAMPLE 1. Bullish Scenario (Powerful Swing Trading Strategy Will Make You Profitable)
To begin with, we have to find out where we are from a price action perspective. If you look at the above image alone, it will be difficult to see how we will find entries only on the 4h time frame.
First of all, we need to identify the most recent leg on the 4h time frame.
As we can see on the image above, this is the most recent price action leg. There is a break of structure (BOS) above a high with impulsive candlesticks.
Afterwards, we check out whether or not an FVG has been created. On the image above, we see an FVG (blue area).
Now, it is important that we talk about our entry rule. Otherwise, you will not be able to have a specific entry and the FVG area is just huge!
Remember, this powerful swing trading strategy will make you profitable without the need to scale down to a lower time frame!
This is the entry “trick”! We extend a horizontal line from the highest point of candlestick number 1 out of the 3 candlesticks that create the FVG.
The stop loss goes below the lowest point of candlestick number 2 out of the 3 candlesticks that create the FVG.
Regarding take profit, we can target a swing low of the 4h time frame such as the one on the image above, or we can target a fixed rr.
This is how the trade looks like on the bigger picture. Until the 4h swing high, we would have hit a 3.2/1 rr.
EXAMPLE 2. BEARISH SCENARIO
Again, we first need to identify the most recent leg. In this occasion, we see that price broke impulsively below a low.
Then, we look out for our 4h FVG. In this occasion we have a 4h FVG as well (blue zone).
We place a horizontal line at the lowest point of candlestick number 1 out of the 3 that created the FVG. Then, we extend it to the right. This is going to be our entry.
Afterwards, we extend a horizontal line from the top of candlestick number 2 out of the 3 that created the FVG. This is our stop loss.
Regarding our take profit, it can be a swing low in this occasion.
Otherswise, you can target a fixed rr, such as the fixe 3/1 rr which is highly suggested with this strategy.
This concludes this powerful swing trading strategy that will make you profitable. Are you interested in a strategy that wins more than 80% of the time?
On the image above, you can see the spectacular results of my best trading strategy. The column on the right is the one that represents my wins and losses!!!
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