A Top Naked Swing Trading Pattern Video Tutorial

Naked trading means trading without any indicators. When you are trading naked you solely focus on price action. Price action is the only leading indicator. All other indicator are derived from price action and just follow it. Moving averages, MACD, stochastic, RSI etc all these indicators are lagging. If you are new to naked trading, you can read my previous post in which I have posted webinar recording on how to trade trend naked. When you trade trends naked, you are infact swing trading. If you are trading and you are glued to the computer screen for hours, you are making you life miserable. You cannot continue like this for more than a few months. You need to become a swing trader. Watch the video below that explains a top naked swing trading pattern.

As you can see in the above video, there are no indicator that can confuse you. You are using price action in its most simple form. The shape of candlesticks will teach you how to identify a big move. I suggest you use H4 timeframe as your basic timeframe for swing trading. First let the trend develop. Don’t try to catch the top or the bottom. You will get clobbered. When a new trend develops and you are sure that this is the new direction for the market, you should start looking for a low risk entry. This is what I do. Most of the time look for low risk entries that provide me good reward/risk ratio. Most of the time I am able to get to catch a big move with a small stop loss of 20 pips. Sometime it is 100 pips and sometimes it is 200 pips. Depends on the currency pairs.

I look at the H4 chart for EURUSD, GBPUSD, NZDUSD, AUDUSD, USDJPY, USDCAD and USDCHF after every 4 hours. I only open a trade on the close of the H4 candle. Whichever pair gives me a low risk entry I trade that pair. For example, if I find the risk on GBPUSD pair to be 40 pips while the risk on NZDUSD pair is only 15 pips. I will trade NZDUSD pair. On NZDUSD pair 150 pips is a good profit target. A swing trade can continue 2-4 days. On Friday just before the market close close all the trades. On Monday reopen the trades. This will help you avoid an unexpected sunday gap on Monday.

So in essence this is my swing trading strategy. With a small stop loss of 20 pips, I try to catch big moves that makes 200 pips on average. So suppose my winrate is 50%, I win 5 trades and lose 5 trades in 10 trades on average. Winning 5 trades means I make 1000 pips and losing 5 trades means I lose 100 pips. So on average I make 900 pips. But I try to keep the winrate above 80% most of the time and when the trade moves in my favor, I open more positions and move the stop loss to breakeven.

As said above I only look at H4 candles. I don’t bother about lower timeframes of H1, M30 and M15. I solely focus on W1, D1 and H4. W1 and D1 give me important support and resistance levels. Once I have opened a trade, I close the computer and check it next day. So my life is very easy as compared to other traders who check and recheck how the the trade is going. The most important thing in my swing trading strategy is the stop loss and take profit target. I choose both of them with lot of care.

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