Swing Trading: The Ultimate Forex Webinar (4-Step Blueprint)

– [Justin Bennett] Hey everyone,
welcome to today’s webinar. It’s the ultimate Forex
swing trading masterclass and my name is Justin Bennett. I’m really really excited
to cover this topic with you because a lot of people
don’t really understand swing trading and what it involves. There’s a lot of misconceptions out there. So this training today
is going to take you from feeling frustrated or even
confused and really help to clarify things and show
you how swing trading can help you in your
daily journey with Forex. (upbeat music) Okay so today’s training is
for you if you wanna learn how to profit from swing trading, you’re tried of struggling
with indicator-based systems. I’m sure, how many of you spend
most of your time searching Google looking for that
best trading strategy right? You’re constantly looking
for something that works. And I’m here to tell
you that you’ve found it but it’s not based on indicators. Okay, I do use a couple of
’em which we’ll get to later. But as far as indicator-based
systems go I found that they lag and most, I mean I
would say 99.5% or six percent of them just don’t work okay. So if you’re tired of
struggling with indicator-based systems today’s training is for you. And it’s also for you if you
need help drawing key levels and also identifying trends. Okay I’m gonna run you
through exactly how I identify key levels in the market and
also how I identify trends both short term, mid term,
and long term trends. And last but not least if
you’re unsure about your entries and targets one of
the most common questions I receive is, you know I’m
able to get into the market but I can’t get out for a profit. So I’m gonna walk you through
exactly how I do that. Now today’s training is not
for you if you’re looking to get rich quick. Or you expect results without effort. I think it goes without
saying that Forex trading is incredibly tough. In fact succeeding in
this business is probably the toughest thing that you
will ever do in your life. Okay, it takes months if
not years to make it in this business. So you’ve gotta put in
the time and effort. So what are we covering today? Well first I’m gonna walk you
through exactly how I draw support and resistance levels. I’m also gonna talk about
two highly effective ways to evaluate momentum so this
goes back to identifying trends and I’m gonna show you
the three different trends I look for. And also how to evaluate
the momentum of each one so you’ll know if you
should be buying or selling. Third I’m gonna talk
about two effective buy and sell signals that I use. And fourth I’m gonna talk about, again going back to that entry
and exit I’m gonna show you exactly how I enter the
market and how I exit and once you understand
this you can use it in any scenario. So you’ll never find yourself
guessing where you should get in and where you should get out. Okay the very first step
when you’re swing trading is to identify support
and resistance levels. I like to use horizontal
levels as well as trend lines to identify key areas to keep an eye on. So I’m gonna go ahead and
jump straight into a chart. We have the Euro USD daily time frame and before I begin you
will notice that I have two moving averages right here. So this is the 10 and 20
exponential moving averages and I’ll show you how
I use those a bit later in this webinar. So for now we’re just
gonna focus on identifying those key levels. Alright so I like to zoom out
on the daily time frame here and what I’m looking
for are the swing highs and lows in the market. So I’m referring to these right here. So we have a swing high
here, we have a low here, another swing high, swing
low, swing high, swing low. So you get the idea. So I’m looking for these points like this and I’m gonna use these to
identify those key support and resistance levels. Okay so if I use those and
I come in here you’ll notice I have one level drawn down here. Because this was a major swing
low so I’m gonna go ahead and identify that right away. I’m then going to start
drawing my levels out. Okay, so if you come here
you’ll notice that we have a low here, high, another high,
and a swing low back here. And just moving on I’m
going to draw one here. So again you’ll notice, and
I’ll just draw this out for you so it’s clear we’ve got lows back here, we’ve got a high right
here, and some lows here. Okay so moving on I’ll then
go ahead and look at this low right up here. And if I move along to
the current price action you can see that it’s not
ideal, it’s not perfect. Okay but the market is
respecting this area right here. And there’s also if I zoom in
you’ll notice that there is another horizontal area right in here. So we’ve got these highs back
here and we’ve got these lows right here. Alright so that’s kind of how I go through and identify the horizontal levels. I like to keep it really really simple and one thing that you’ll start to notice is that most of the key
levels are going to be evenly spaced. Now they’re not gonna be perfect alright, but if you’ll notice there’s
about 250 pips between these two levels. There’s about 180 or 190 pips
between these two levels. There’s 250 pips between these two levels. So you’ll notice that each
level is about 180 to 250 pips away from the last one. So what you can do is use
that to your advantage. So if we know that each
level is about we’ll say 200 to 250 pips away, then we
know that from this level the next one is probably going to be, okay somewhere up in here. Now it gets kind of choppy
back here but you’ll notice that we’ve got lows here, lows here, and a bunch of lows back here. And guess what, this is about 160, about 170 pips away from the
last one so it’s right there in that 180 to 250 range. Alright, so that’s horizontal levels. Now let’s take a look at a trend line. Now the first thing I
do when I’m identifying trend lines is I zoom out a
little bit just to kind of get a feel for the,
the flow of the market. And you’ll notice that right
away I’m gonna use this low back here and I’m gonna
check out these swing lows right through here. Okay so we’ve got this low back here, we’ve got these lows,
and this low right here. And you’ll notice that
I’m using the very low of each candle. Okay so the lows right here
and I’m also using the lows right here. And this session, these
two sessions actually closed above the level. So this was still holding a
support right through here. But then on this candle we
got a close below support. So I’ll go in, in another
step I’ll go in in more detail on how to identify these
changes in momentum. But as far as drawing
the trend line itself I look for the very low of the candle. Now of course if this were
a descending trend line like this back here, alright
I’d be looking for the very high of these candles okay? The very upper extreme of the wick. Alright so that’s how I draw trend lines. So just remember to look for
the low and high of the candle. Alright you don’t wanna
start cutting off too many candle sticks. And also keep your levels to a minimum. So I see a lot of times traders
will start drawing levels that start to look like this. And the problem there is that
even though some of those levels may be valid you’re
not gonna be able to put on a trade. So you’re gonna be so
focused on these little 50 or 60 pip movements that
you’re not gonna be able to achieve a favorable
risk to reward ratio. Alright so let’s finish
up with our slides here and just run through some key take aways. So I wanna use the daily
and weekly time frames when I’m drawing these levels. I would say that most of the levels, about 90% of the levels I come up with on the daily time frame and the
rest come from the weekly. You also wanna focus on
those swing highs and lows. So if you’re on the daily
chart most of those swing highs and lows will come after
a weeks of developing. So you wanna look for those
extreme highs and lows in the market and that’s what you’re
gonna use as your base line for your horizontal levels. And you also wanna include as
many touches without cutting off the wicks. Alright if you start cutting
off a lot of candle sticks you’re probably doing something wrong. So at least the first two
points of a trend line you want to be at the
very extreme of the wick. Either the low of the candle
or the high of the candle. And don’t forget about trend lines. I see a lot of traders only
using horizontal levels and while you can do that
I found that trend lines are a great tool for
identifying changes in momentum. And also let the price action
validate the levels for you. Don’t be afraid to move
levels around if the market invalidates it. So let the market tell
you if your analysis is correct or not. And try to maintain spacing
between the key levels like I talked about before
where each level was approximately 180 to 250 pips away. And last but not least don’t go overboard. Keep your levels to a minimum. So if you’re finding that
most of your horizontal levels are only 50 pips apart you’re
probably over doing it. So you wanna keep those
levels to a minimum. Alright now that you have
your key levels drawn let’s take a look at
momentum in the market. So the very first thing
that I wanna discuss are the three types of trends. The first is a long term or secular trend and that’s one that lasts
for five years or longer. The second is a intermediate
or primary trend and that’s one that lasts
for one year or longer. And last but not least we
have a short term or secondary trend and this is one
that lasts for a few weeks to a few months. Now this is probably
the most popular trend because as swing traders we’re
doing most of our trading within a few weeks. Alright at most, so we’re not
really going to deal too much with intermediate or long term trends. However, they can be extremely helpful. And another thing I wanna point
out is that you hear a lot of traders saying that a
market is bullish or bearish and the truth is that
those terms by themselves are meaningless because without
specifying whether you’re talking about the short
term, intermediate, or long term trend there
really isn’t much to go on. So if I tell you the Euro
USD is bullish that doesn’t tell you anything because
it might be bearish in the short term and I’m
referring to the long term. Alright so always keep that in mind. Now the very basics of
momentum deal with swing highs and swing lows. So an up trend is higher
highs and higher lows. Whereas a down trend is
lower highs and lower lows. So that’s really basic
stuff but you’ll find that everything gets back to the basics. So no matter how complex
you try to make something whenever you’re swing
trading it all comes back to the highs and lows. So here’s a great example. In this market you can
see that it was previously making these higher lows and higher highs. Okay, but then there was a shift. We had this first lower high right here, followed by the first lower low. Okay, so this was the previous low, this one is lower. And now look, all of a
sudden this market starts to head lower. So back here it was rallying. It moved sideways for a bit
and then just doing nothing but looking at the highs and
lows we can see that there was a shift in momentum right here. One trick that I like to use and this is, I mentioned this before but
the reason I like to use trend lines is not only
can I identify entry points but I can also use them to
identify changes in momentum. So one thing I like to
look for is the distance between touches of a trend line. So in this case we have
this up trend alright. So it’s an ascending level. And although this is just
an illustration I’m gonna show you in a moment a real life example. And in this case it took
35 days between the first two touches. Now by the third touch
it only took 25 days. Okay so 25 days from here to here. The next one was just 10 days,
so 10 days from this touch to this touch. Now look, five days here. So what is this telling us? And you can also notice that
this happens quite often where the market starts
to lose momentum okay. It’s an exhaustion signal right? Buyers are having trouble
breaking above these levels. So whenever you see this
and you have this ascending trend line there’s a very
good chance that the market is about to break lower. Alright so again this is what you get. So the market is having trouble
breaking about these highs, it’s retesting this trend
line more frequently. And then what happens, you get a break, and a retest. So here’s an example where
you can see the concept that I just described. So from this touch right here
to this one was 178 days. However from here to
here it was only 48 days. From this one to this one 22 days, and then this very last
one right where it actually broke down was eight days. And again you’ll notice
that even though the market was still sort of making higher highs here if you’ll notice this
swing high back here. Look how much higher this
one is compared to these. Okay so the market started
to have trouble breaking above this area and it was
also testing this trend line more frequently and what
we got here was a market that ended up declining
for more than 1,000 pips. Now similar to this concept
is something that I call clustering price action. So you’ll notice that back here we have an ascending trend line and
in a similar way the market starts to retest this
level more frequently. However, just before the
break down you get this almost sideways price action that
suggests that a break down is imminent alright? So let’s take a look at an example here. You’ll notice that we had
an ascending channel okay? And notice how quickly the market bounced the first three times. Okay so once we had this
low right here we could draw this lower boundary. But notice how quickly the market shot up every time it hit this level. But then look what happened back here. Okay you get this sideways price action where buyers are really
struggling to move higher form this level. And then you get a break lower. Alright so this is a really
great way to identify imminent break downs and
allow you in this case to get short. Now this section would
not be complete without taking a look at a real life example. Alright so here we have the British pound versus the Japanese yen and
you’ll notice that we have this up trend here. And if you remember this is actually an intermediate up trend
because it lasts for just over one year. So we also have a channel alright. So let me just draw this out really quick. We have a channel here and
this is actually a pattern that I have posted several
times on the website. And I wanna point out something here because this goes back to the
concept we just discussed. And what I’m gonna do
is just draw the levels or the points where the
market interacts with support and resistance.
(gentle music) Alright, now notice
what happens back here. Look at the distance
between these first two and then this one right here. And then what happened when
the market came back here and tested this level
this is almost a guarantee that the market’s about to break lower. Because buyers are having
trouble moving off of this level and you also had these
lower highs back here. Okay so those two things
combined told me that this market was about to break down. And again I actually
discussed this break down on the website. And I also pointed out
this retest right here. So we had the initial break
here where we could’ve gotten short. We had the retest here where
we could’ve gotten short. And I also just pointed
out this bearish pin bar which we will talk about
later in this webinar. So we had this bearish pin
bar right here that was good for about 350 pips. Okay but the thing I want
to, to point out here is that now we’re kind of bringing it all together because we’re dealing with
an intermediate up trend. We also have a short term down trend. Okay so each one of
these could be considered a short term down trend. Alright, short term up trend back here. And so we have this short
term down trend among an intermediate up trend and
you can use a channel like this or a trend line to identify
where the market breaks down and look for short opportunities. Now you will notice that
the market has started to move sideways and consolidate. However this looks to me more
like an ascending channel and given the breakdown
that occurred recently I would not be surprised to
see this market head lower over the next few months. At this point you should have
identified your key levels and you’ve also evaluated
the momentum in the market. So now we want to start
looking for buy or sell signals and it’s really important
here that you scan for signals and not search for them. That may sound like the same
thing but the difference is if you search for signals
chances are you’re going to find something right? You’re gonna find what you’re
looking for but that does not mean that it’s worth taking whereas if you’re scanning for
signals it’s more of a casual scanning of the market
where you’re not necessarily looking to do something. But you are scanning for
the very best signals. Alright so obviously when
we’re trading the market we want to buy from support
and sell from resistance. One of the key signals I
look for is the pin bar. Now this is a pattern that
I started with at this point about seven years ago. And it’s something that I still use today. So it’s really really effective
and the key characteristic of the pin bar is this tail right here. So notice how long this
part of the wick is. And another characteristic
is the nose right here. Notice how the market
closed very near the high of this candle stick. Alright then same goes for the bearish, the bearish pin bar. Where we have a long upper wick up here and a very small nose here at the bottom. Now one thing that does
trip up traders a little bit is the color of this body. Okay, so notice how this is
white so that means that the market actually opened here right? It moved lower, and
then closed right here. This body can actually be a bearish close for a bullish pin bar. As long as the lower wick is still long and the rule that I have for
these pin bars is that this, let me go ahead and clear
that off really quick, this tail right here. Alright this, this should be
two thirds of the entire range. So the range is from here to here. And this tail should be at
least two thirds of that range. And as you can see this is
clearly at least two thirds of the range. So that is really the one
rule I have as well as a small nose. And as long as you have those two things the body right here should
be relatively small. The next signal I want to discuss
is the long tailed candle. You’ll notice right off the
bat that it is very similar to the pin bar in the sense
that we have this long tail. (gentle music) The key difference here is
that the nose is a little bit longer alright. So this area up here and the body is also a little bit longer. So this doesn’t necessarily
qualify as a pin bar because remember, the tail
in the case of a pin bar, this area right here
would need to be at least two thirds of this
range from here to here. And that’s not necessarily the case. This is closer to the kind
of 50% area of this range. However the implications of this pattern can still be effective right? It’s similar to the pin
bar in the sense that for this bullish candle if
you had a key support level right here this longer tail
is telling you the same thing and that is that there is
demand down here in this area. So it may not qualify as a pin bar, it may not be a perfect pin
bar signal but it is still considered a long tailed
candle and it can still produce a move higher just as a
bearish long tailed candle can trigger a move lower.
(gentle music) And as a bonus I want to discuss the bullish engulfing candle as well as the bearish engulfing candle. And the reason being that
this pattern has become one of my really go to signals
just like the pin bars. So before I used to trade
the pin bar I’d say probably 70 or 80% of the time. Whereas now I might trade
the pin bar half the time and the other half of the time I’m trading the engulfing candle. So as you can see as the
name implies the engulfing candle is where the
range of this candle here or the body engulfs this previous one. Now here’s the thing,
there is a lot of debate and there has been for many
years whether it is necessary that the body okay, so from
open to close engulfs the previous range, so from high to low. In order to do that the market
needs to actually gap down. So notice that this is the
close of the previous candle and this is the open of this candle here. So it needs to actually gap
down and then close much higher. However what I have found
is that as long as the range of this candle stick
here engulfs the range of this candle stick I consider
it an engulfing pattern and to be honest it’s just
as effective as if the body of the candle engulfed the previous range. Alright so as long as you
have a large body like this, this area right in here, and the range engulfs the
previous one it’s considered an engulfing pattern. Now just like the pin bar
and the long tailed candle you wanna find a bullish
pattern at a swing low. Alright so where the market
let’s say this is support, the market comes down here into support, and then forms a bullish
engulfing candle stick and then takes off higher. And with the bearish pattern
here’s our resistance level, the market comes up, forms
a bearish engulfing candle, and then moves lower. To wrap up let’s take a look
at an example of the pin bar as well as the engulfing pattern. So here we have the British pound versus the Japanese yen and we have
this ascending channel that formed on the daily time frame. If I scroll over here and
zoom in you’ll notice that we actually got a bearish
pin bar right here off of this level. Okay, so back here the level
was still acting as support. It then closed below the level
which means that the area now becomes resistant. So notice how it sold off from this area, moved lower, and then
came up and retested it. Now this candle stick right
here is our bearish pin bar. Alright so notice this guy right here. That is our signal. And I’ll discuss entry and
exit methods in the next step but what I wanna focus on is
the look of this candle stick. Because remember for the
pin bar the tail needs to be at least two thirds of the range. So this area right here
needs to be two thirds of this area. Which is clearly the case. And the nose in this case
was non-existent which is actually good because it
shows that if the nose was like this I wouldn’t
wanna trade this pattern. Alright, it may still qualify
as a long tailed candle but if the nose gets too
long like this then it almost becomes closer to something
like a doji instead of a pin bar. But as it is you’ll notice
that we had this small body, and a long upper tail which qualifies. And we also had this key level right here. Additionally we also had
momentum in our favor. Because even though the market
started to move sideways down here we had this down
trend that actually started several weeks earlier. Remember, we had this
high up here, this low, a lower high, and a lower low. So this actually was a
short term down trend. So when this pin bar formed
at this resistance level this was a valid sell signal. Next up we have the Euro
versus the Japanese yen and here I wanna talk about
a bullish engulfing candle that formed and you’ll
notice that we have this key level right here. So it acted as resistance back here. The market then broke through
it on this candle here. And you’ll notice that it
then began acting as support. Alright there was several
instances back here and if I zoom in at the
very end of this period of consolidation right here
you’ll note that we have a bullish engulfing. Alright so here is the low,
this is the high right here, and the previous candle, the range, this is the high and this is the low. So as you can see the range of this candle did engulf the previous one. And it’s also at the very
end of this consolidation and we have out key support level. The momentum is also up
because we have the market. Okay, again we’ve got this low back here. It puts in a high and then
these lows down here at support. Now of course you wouldn’t
have seen this at the time but eventually it did
put in a higher high. But this bullish engulfing
candle right here could’ve been our signal that the market
was ready to move higher. Now you’ll notice that back
here we also had this long tailed candle and you could’ve
actually bought this signal. And even though the
market did come back here and retest this level the
fact is that look at this low right here, and this low right here. Now you may have been
stopped out right here and you also may have
gotten out prior to all this because it did take so long to get here. But even if you got out
the market did move higher before it moved lower you
would’ve had time to trail your stop loss and cover any
potential losses there. Alright but this is the signal right here. That’s our bullish engulfing candle. So we’ve got low, high,
low, and then a higher high. Now it’s time for the fun part. So at this point you’ve
drawn your key levels, you’ve evaluated the momentum, and you’ve also scanned
for a buy or sell signal and you’ve found one. So at this point you want to
now identify your entries. Now I use two basic
methods and one is a break of the trigger candle to
the upside or downside. The other is a 50% retracement. We’ll take a look at
both of those in a moment but first I wanna also mention the exits. So when it comes to exits
you’re either gonna exit for a profit or for a loss. In the first case if we’re
exiting for a profit we’re really just using those same key
levels that we drew in step one and if it’s for a loss it’s
gonna be an invalidation of that trigger candle. So either the pin bar
or the engulfing candle. Okay let’s flip over to a
chart and we’re gonna take a look at the same British
pound verus the Japanese yen bearish pin bar. And let’s first talk about entries. So the first entry method
here is gonna be a break below this candle stick. Remember this is our
bearish pin bar right here so it would be a break
below this candle stick. Now the second option
is the 50% retracement. So what that says is that we
look for a 50% retracement of this pin bar right here. And you’ll notice that
the very next candle gave us our entry. Okay so notice how the candle
came up above this area so this would’ve been
our entry right in here. The advantage of the 50% entry
is that when you position size this you’re going to be
able to make about two times the amount of profit on this move lower than if you had entered
here on this break. Alright so the 50% retracement
is going to give you a better risk to reward ratio. However there is a downside to it and I’ll discuss that in a moment. But first let’s talk about exits. Alright so in the case of
the pin bar the stop loss is always gonna go
above this pin bar here. Now if this had been a bullish
pin bar okay like this, the stop loss would go below the tail. So if the market had come
up here and taken this out it would invalidate
this pin bar right here. And as far as an exit for profit what I would’ve done in this case, and this market you can
tell is still in process so it’s still playing out. But you can see that we’ve
got a little trend line here that chances are when the
market gets down in this area it’s gonna catch a bid okay. I don’t know if it’s gonna
you know bounce higher or bounce a little bit and
then break but as an initial target his area right down
here looks pretty good. So again it’s just another key level. So it can be a horizontal level. Because there’s also an area through here that you could’ve used. So notice we have this low here. We’ve got some more lows right here. And then a bunch of highs. So you could’ve technically
used this right here as your target. So you’d enter up here. Or enter here. Stop loss up here. And this right here is your target area. Okay let’s flip over to that
bullish engulfing pattern that we looked at earlier. And identify some entries and exits. So in this case let’s talk
about the entries first and remember this candle right
here was our signal candle. Just like the pin bar you
can enter on a break above this candle and another
thing that you can do, it’s not quite as
popular but you can enter on a 50% retracement of this
bullish engulfing candle. But remember how I said
that the 50% entry does have a big downside and that
is that you may not always get triggered. So notice in this case the
market started to move higher but never actually retraced this 50%. Okay so if you had had
a limit order down here you would’ve missed this move
whereas if you had entered up here you would have caught it. So even though the 50%
entry is more favorable you may miss some moves if you use it. Alright now in either case
regardless of how you entered, your stop loss is gonna go
down here below this candle. So if the market had come down
here and taken out the low it would negate this signal here. And as for targets in
this case I’ve gone ahead and plotted some levels
and let me show you why I put them there. So if I move out to the weekly time frame and I’m gonna scroll back here. So all I’m looking at in this
case is this price action right back here because remember
this was our signal candle. So none of this at the
time would have occurred. Okay so I’m not using
any of this right now. And if you’ll notice back
here we had some lows here, we had these highs, and we also had lows throughout here. These highs through here,
we had a little low in here. And again swing lows and swing highs. So these two levels right
here I would’ve plotted based on this price action back here. And if we then zoom in, go
back to the daily time frame, alright let me just get my bearings here. And this is how it would’ve looked. So here is our signal candle right here. And this up here could
have been your first exit. Now of course we also had
these highs right here. So technically it could’ve been here. Or this level here which
we identified on the weekly time frame. And if you had trailed your
stop loss on the way up and you know because of the
momentum here we had this low, highs, retest of this level. If you had trailed your
stop loss on the way up you could have targeted
this other weekly level that we identified and
you can see how the market started to find resistance here and then it broke through
and found support. Same thing with this level here. Once it broke through it
found support in this area. Alright so those are
some, some ways to get out of the market. We could’ve used this range
high or this weekly level and again if you had
trailed your stop loss, and ridden this for a few
weeks you could have actually gotten out up here at
this other weekly level. Now that we’ve discussed
the four steps involved in swing trading, let’s go
ahead and put it all together. So to recap we’re gonna use
the daily and weekly timeframes to identify key levels. However most of your
trading will be done on the daily time frame. So the first step is to
identify those support and resistance levels. That can be horizontal levels
as well as trend lines. Step two is to evaluate
the momentum in the market. Remember those three
different types of trends. We have the short term,
intermediate, and long term. Step three is scan for
buy or sell signals. That’s the pin bar,
the long tailed candle, and also the engulfing pattern. Step four is to determine
entry and exit points. For entries that be a
break of the trigger candle or a 50% entry. And of course the exit points
are gonna be the stop loss or your target which are
those levels you drew in step one. So at this point let’s
go ahead and walk through each step on the Euro
USD daily time frame. Alright so first step is
to identify our key levels. And in this case if you
remember from step one one of those levels was
this area through here. Now it does become sort of messy back here but I’m mainly focusing on
this high here and this low. Alright, now the other one
I wanna look at is this swing low down here because
remember we’re looking at, we’re focusing on the swing highs and lows and this is certainly one of them. And of course I have this level up here at these highs, and we’ve also
go this swing low down here. So just to draw this out for you, swing low, we’ve got this high, this low. These two lows back here. And then this multi year
high up in this region. The second step is to
identify the momentum. So remember those three
different types of trends? If I move out to the weekly chart, in fact I’m gonna go all the
way out to the monthly here, you’ll notice that we have
this long term down trend. Alright so this is the
long term down trend. We’ve got lower lows and lower highs. Over the course of, this
is actually 12 years okay. So this is definitely
a long term down trend. And if I move down to,
back to the daily chart, this right here was actually
an intermediate up trend. Alright so we’ve got
this low right back here. Some highs, lower lows,
followed by higher highs. Now this one right here
lasted for just over a year so this does qualify as
an intermediate up trend. Now there was as trend line
break and I discussed this in step one earlier in the training. So there was as trend line
break that occurred up here. And this can be an early
warning sign of a shift in the trend. Alright so the intermediate
up trend came to an end or at least started to come
to an end with this close right in here. Okay so it acted as support back here, back in here, and again here. Closed below it, and then
notice what happened. The market slowed off and
started a short term down trend. So to recap we have a
long term down trend, intermediate up trend, and
a short term down trend. Now you may also remember I mentioned that the majority of
your trading will be done on the short term trends. So in this case that’s
referring to this short term down trend right here. And if you’ll notice at
one of our key levels we had a bearish pin bar form. So the market respected
this level as support. It then closed below it right here. It came back up and retested
this level as new resistance and it formed a bearish pin bar. Now you may recall in the very
first part of this training I mentioned that I use
the 10 and 20 exponential moving averages. And to quickly tell you how I use those, and I go into this in more
detail in other lessons. But the 10 and 20 I use
as a mean reversion tool. So it’s the average
price of this down trend. So what I like to look
for for sell signals is the market to come
back up into this area. Alright so this tells me that
the market is not stretched so when it’s down here
look how far it is away from the mean. I do not wanna sell down here. Once it comes back up into
this area then I can become, I can start looking for sell signals. Okay so the bearish pin bar is our signal. And the next step is to look for entries. Okay so remember the
50% entry will give you a better risk to reward
ratio but it’s big downside is that you won’t always get triggered. The second option is to
enter on a break below this candle stick which
would’ve worked out nicely as the market sold off
and the stop loss would go above the candle. Now the target in this
case is gonna be this next support level which remember
was this low back here. Alright so this one right here. And so that’s gonna be our
target and you’ll notice that it bounced right from that area. And again back here too. So this was our signal candle. Entry, stop loss goes above
the candle and our target is down in this area. And that right there just
looking at it would’ve been about a 3R trade so it is a decent risk to reward ratio. So there you have it. Step one identify key levels. Step two evaluate momentum. Step three is to scan for signals. And step four is to identify
those entries and exits. So just always remember to
stick to the daily time frames, look for one to two
quality set ups each week and keep it simple. If you enjoyed this video
give it a thumbs up. Leave your comment below
and be sure to subscribe to my channel. See you next time.
(upbeat music)

21 thoughts on “Swing Trading: The Ultimate Forex Webinar (4-Step Blueprint)

  1. Thanks for stopping by! Subscribe here: http://bit.ly/2lTRJCh to be the first to watch new Forex videos, and leave your comment below. 🙂

  2. Yep nice explanations, very super simple just needing chart time to perfect, liking your work Justin 🙂

  3. what if daily candle on friday closes under resistance but on monday opens above resistance level ?

  4. what if daily candle on friday closes under resistance but on monday opens above resistance level ? what does metter openning or closing ?

  5. As you promised….here we have our next lesson…..thanks a lot Justin Bennett…amazing teacher

  6. Just came across your channel yesterday and found it to have so much value. Clearly and simply explained. Practically all the big picture in trading esp for swing trading. It has given me a totally new perspective the way i see my charts. Thank you so much for this… God bless you and your works !

  7. I'm short of words, you are a Teacher.. Well explanatory, thank you so much for the knowledge shared. More powers to your elbow.

  8. Very inspiring and eye opening knowledge. I already start draft my resignation letter. Hahaha

  9. Very nice video. There is only a few of us who teach swing trading.
    This is the only trading style that will give you true time freedom 🚀

  10. great bro, you are the angle for old and new traders, because free told all your 13 years secrets tips , GOD bless you and your sweet family

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