The Only Swing Trading Strategy You Need To Be Profitable | Forex Trading

in this video you're going to learn my entire mechanical swing trading strategy for free I'm going to explain exactly how I use supply and demand Market structure liquidity and smart money Concepts on a daily basis enjoy and let's dive straight in so what we're going to do is we're going to go into nzd USD and do a trade recap of a 4-Hour swing trade that I took so when I go onto a chart no matter which one it is we always need to analyze it in the same way trading is not hard but you need a mechanical blueprint in order to become profitable so Step One is drawing in your Market structure and identifying the overall swing Trend so what we can very clearly see is that the overall swing Trend here on ND USD is bullish in towards the upside overall we saw a downtrend creating a lower low a lower high and a lower low but we then saw a break of structure flipping the structure from bearish into a bullish market so what I understand is that the overall swing structure here on NSD USD is bullish so when it comes to structure there are two forms of structure in this strategy and the first one we've now identified which is your swing structure is bullish from this low in towards this high now step two is identifying the fractal structure and if you have not yet seen it you can check my previous video I explained exactly how to identify a change of character but what you want to do here is you want to look for that fractal structure and I'm marking it out here with these gray dots and what you can see is that we had a break of structure here on the first one we had another break of of structure here and another break of structure here so we had a very clear bullish fractal Market in towards the upside where we were Cate creating higher highs and higher lows when we look at the trend on individual candlesticks however the market then flipped bearish in towards the downside until something very interesting happened right over here so if we just remove the gray dots for a second and we focus purely on the individual candlesticks what you're very clearly going to see is that we saw a trend shift from a bearish market into a bullish market so at this point in time we see a bullish reaction and this to me confirms that the overall Market structure is now aligned the overall swing structure from the low in towards the high was bullish but now also the fractal structure is bullish as well and therefore we have Market structure alignment Al Longs are a good option therefore confidence Point number one is ticked off now moving into Confluence Point number two we're going to be looking at supply and demand so what we can already understand is that after the market structure shift that we saw over here we created a new area of Demand with this bearish candle so at this point in time I understand that we have a daily area of demand however areas of supply and demand are created everywhere what's more important is where the area of theand was formed and where it originated from so what you then want to do is you want to look left and you want to identify this area of demand over here so supply and demand zones are very easily identified by for example a cell before a big buy candle therefore this for me is a valid area of demand however what you see happening is that we see a sweep of liquidity underneath the demand Zone and then a reversal back in towards the upside so this is straight away Confluence Point number three which is called liquidity and what I want you to understand is that when we have a so called bump in the road up because we all know this was the impulse up there are bumps in the road up as you can see here minor pullback here A minor pullback here A minor pullback every single time you come across a bump in the road you see the market react and reverse over here again you see the market react and reverse however here nothing interesting happened here something interesed did happen because here what happened is that you saw a market structure shift therefore validating the fact that there was liquidity underneath this low and that this area of demand which is validated by the liquidity is therefore for me valid so therefore we have both liquidity and we have an area of demand what you can do in these situations when you liquidate the liquidity low is just move the demand a little bit lower to underneath the low look if you get a valid reaction and a valid reaction for me is a change of character like we got over here and therefore I'm now interested in looking for a long so at this point in time we have Mark Market structure alignment we have demand alignment and we also have liquidity so the daily is looking good for further upside now what you want to do is you want to go into the lower time frame which is the 4H hour and then identify if you see the same setup over there so when it looks so when it comes to the 4-Hour time frame we can very clearly see that we had a bearish trend in towards the downside but also on the 4-Hour time frame we have now shifted from creating lower lows and lower highs to creating now a higher high and seeing a break of structure after breaking this high so we're on the 4-Hour time frame we're going to be doing the exact same thing that we just did on the daily and that is getting Market structure alignments so what we have here is again a swing Trend which was bearish and now what do we want to look for Market structure alignment so next to the fact that the swing structure from this low into the high over here is bullish we now also want to identify okay is the fractal structure bullish as well so the fract structure was bearish over here in towards the downside we saw a high break over here confirming the bullish trend for me again another fractal High break over here confirming the bullish Trend this is then your fractal low and as long as that low is respected this demand Zone should be respected as well and we therefore have Market structure alignment the fractal structure now aligns with the overall swing structure with the overall swing range we then look at the premium versus discount tool this is the fourth piece of Confluence that I like to use this is just simply a 0.5 Fibonacci retracement and that is where you would want to be entering you can see this area of demand pretty much aligns with that FIB retracement level so what we see happening and we're just going to move it up higher as long as the pullback has not yet been initiated until now it seems what I'm then happy to do is I'm happy to enter on top of my 4-Hour area of Demand with my stop loss underneath demand and underneath that fractal low because as long as the demand Zone and the fractal low are respected we should continue to move up higher my target a fixed one to fre risk to reward as that is simply the easy to use Target that I always used within this strategy so what we're going to see is that the market pushes down into towards my demand Zone pretty much in towards that 0.5 FIB as well and what I want you to understand is that the 0.5 FIB is always a Zone not a line it is always a Zone because price is not perfect and it's not always perfectly going to pull back in towards that 0.5 and then suddenly reverse in towards the upside and then what you see happening is that we indeed continue to push in towards the highs the market consolidates for some time and then eventually we hit that Target so that is a easy to use swing trading strategy on the 4our time frame that is ready to use and if you have any questions make sure to come into the comment section down below where there to help and I can't wait to see you in the next one thanks for watching and have a great day