Dear FX Top Gun,
“ I swing as hard as I can, and I try to swing right through the ball.... I swing big, with everything I've got. ” That’s how Babe Ruth felt about baseball. He was there to win… period. He didn’t go after the ball half-hearted. He gave his all… every swing… every pitch… every play. No wonder he was such an amazing athlete. And it’s no wonder that more than 60 years after his death, Babe continues to be a legend and a hero… not just to baseball fans, but to people everywhere. Yup… it was the power and passion behind his swing that made him great. Today, you are reading this because you want to be one of the greats in the Forex world. I know the feeling… I always had this burning passion to be a Forex top gun… a real superstar. At The Risk Of Sounding Like I’m Blowing My Own Horn… Today, I enjoy an almost legendary track record of wins and high returns – so much so that I’m known as the top Forex money manager in the world. I’ll tell you this... a lot of my success has to do with the fact that I learned how to handle the swing. And that is what Secret #20 is all about… how to handle the swing in Forex so that you can win big and win consistently. First, let’s talk about the Forex swing… A swing is a previous high or low where the market reverses. Pretty simple isn’t it? Just about as simple as swinging a bat. It’s using that swing to become a superstar that is difficult – right? So, now let’s talk about putting the swing to use so that you can see your bank account split wide open with FX homerun after FX homerun… The key to using the swing is knowing how to draw trend lines. Draw trend lines that connect swing highs and lows. These trend lines can be drawn horizontally or diagonally. Using Horizontal Trend Lines When we draw them horizontally, we are looking back in time to see where price was met with heavy resistance or support and we can connect these two points. Normally, a horizontal line is a strong support or resistance level and price should not temporarily move above or below that level. We get the terms “double tops (bottoms)” and “triple tops (bottoms)” from horizontal trend lines. These terms signify that price has moved to that same level two or three times and bounced off. Using Diagonal Trend Lines If we are drawing diagonal trend lines, we are connecting the swing lows in a market that is rising and the swing highs in a market that is falling. If we can connect at least three points on the line, it is a verified trend. So, if the market is rising and we can draw a diagonal line touching at least three swing low points where price has pulled back, we can use that line to determine an exact point in the future where, if price comes down, it will act as support. It is very important to remember, that, in general, diagonal trend lines are not as strong as horizontal trend lines – but still give you some great insights into current trends and how to deal with them. Energizing Trend Lines For Major Profits When used in combination with other support and resistance indicators such as pivot points and Fibonacci retracement levels, trend lines can be very powerful. When these other indicators all converge at the same price levels, it is double and triple confirmation of the support and resistance. In fact, the chances of the price going through those levels are very slim, especially on the first approach. Of course, be careful if price does break through because the trend could be changing and it may signal a nice breakout or breakdown momentum trade the other way. Get The Right History How far should you look back to determine trend lines? A good rule of thumb is: - When working with a daily chart, go back 1 Year
- When working with a 60 minute chart go back 10-14 trading days
Now that you know the proper swing technique, it is time to get out on the field and start hitting homeruns. You may never be the Babe Ruth of Forex trading, but I’m willing to bet that you stand a good chance at being among the top 5% of Forex traders that regularly profit. And who knows, maybe one day soon, I’ll see you in the FX Hall of Fame. .
Here’s To Your FX Trading Success,  DC Bonta, The world’s #1 FX money manager  ******************************************************************* Editor’s Note: DC Bonta has recently introduced his latest forex training system called Institutional Forex System II (IFS II). Thousands of traders around the world have been able to profitably implement IFS I and this new version allows traders to move to the next level. For more information click here now. *******************************************************************
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