In this example we will say price is looking to breakout and through a resistance level. When the first breakout begins price is looking to breakout and through a support or resistance.

The false break occurs when price looks to breakout of a support or resistance level, but then quickly snaps back in the other direction, false breaking a large portion of the market out. I have an in-depth guide you can use to learn more about swing trading at Swing Trading Price Action Quick GuideĪ false break can be a very high probability trading setup when you have mastered it and play it at the best areas. If however, you are looking for a strategy that is fast paced, you are in and out of your trades quickly and you can make many trades in a short period, you may want to use another strategy. Swing trading can suit a wide variety of traders who are looking to make quality trades and enter into the next swing in the market. – You are not moving in and out of your trades quickly – Whether on the smaller or higher time frames it can take time to play out – It does not involve entering fast-paced intraday breakout trades hunting for quick wins – You are happy to make less trades that are higher in quality – You don’t want to use the smaller paced time frames – You want to trade higher time frames like 4hr, daily and weekly charts – You have to study full-time or have a job, but still want to trade If price moved into this level you would be watching for bullish price action trigger signals to get long and for price to make its next swing higher for you to make profits. If price is in an uptrend you would look to identify where the next swing low is going to occur and where you would like to hunt for long trades. I have attached an example swing trade on the chart below. Swing trading is not as stressful and you will often have the levels you want to find and then enter your trades at pre-marked so you know when price moves into a level to look for a trade setup.īecause price is not breaking out and making explosive breakout moves, and is often moving over longer periods, you have more time to make your trading decisions and is a less stressful way to trade. If you miss crucial moments, it will often mean you miss the trading opportunity you were waiting for.

When breakout trading you are looking for really fast price movement and to profit from explosive breaks of important support and resistance levels.

You are looking to profit from larger swings. Swing trading is looking to profit from the next swing the markets make.Īs a swing trader you will often be using the higher time frames such as the 4 hour and daily charts and looking to capture large market swings and moves.Īs a swing trader you don’t just have to use higher time frames, but you are not breakout trading, false breakout trading or scalping.

Scalping strategy pdf