The Best Time For Swing Trading Futures

As an active futures trader, you may make use of several techniques of trading. One technique you may wish to try out is swing trading. In this article, we share with you when the best time for swing trading futures is.

Understanding Swing Trading

When you open and hold a new position in the market for a period spanning multiple sessions, you are taking part in swing trading. This period can be anywhere between a few days to several weeks. Regardless of the specific duration you hold on to your new position, swing trading involves staying active through one or more market closures.

Although swing trading can be capital-intensive and puts you at greater exposure to risk, it comes with the benefit of larger returns and you are less affected by intraday volatility.

The Best Time to Swing Trade

Now that you have established swing trading is a good idea, you may be wondering: when is the best time to do so? Below are some opportunities you can take advantage of to start swing trading:

• Trending Markets

When asset pricing starts moving in a directional trend, it’s time to consider swing trading. A trending market presents a positive risk-to-reward ratio for traders, with a return of up to five times the initial risk of the position. 

• Shifting Fundamentals

Fundamental analysis involves analyzing external factors to determine the intrinsic value of an asset. Take note that an asset’s intrinsic value does not necessarily equate to its price. Some examples of fundamentals include political policies, inflation measures, supply reports, and more. If you foresee a shifting fundamental on the horizon, whether positive or negative, swing trading can give you a chance to capitalize on it.

• Pending Reversals

Technical analysis is what you will want to rely on when identifying a trend reversal or exhaustion. Compared to accurately recognizing market tops and bottoms, identifying a pending reversal is highly possible and can be done through analyzing chart patterns as well as support and resistance levels. This presents swing traders with an excellent opportunity for turning the risk-reward ratio in their favor.

Come to Bold Analysis, LLC, to Start Swing Trading Futures Effectively

At Bold Analysis, LLC, our goal is to create an independent community of traders by providing you with the resources you need to make the best-informed trading decisions. The range of services we offer includes 1-on-1 coaching, digital mentorships, support for beginner traders, and more. As a part of our community, you can benefit from 24/7 admin support as well as a chat forum for members. 

If you have any questions about our services or would like to get started with an account today, we welcome you to contact us to speak to one of our experienced consultants. Join our community today to gain access to the support and resources you need to start swing trading futures.