Any time I release a market forecast I get a few questions about what to do with the Swing Points (SPs).  Some people have marketed this data as “Bank Flows.”  These are prices at which a bank or commercial trader would be interested in buying or selling a particular asset.  It’s not as simple as placing a short trade at the first SP above the current price.  Even though that method will win quite often, I’ve found it better to watch these prices and see what the market is doing when it gets to these prices.

With the use of powerful trend filters, you can easily decide which direction you’ll trade.  The trend is in place for a reason.  It’s in place because the smart money is buying or selling.  The smart money tends to do this together, because they all have access to the best information regarding the economic situation to come.

Once you have established the trend, and price is approaching a Swing Point, it’s time to start watching price action.  I am looking for a specific breakout if I am going to bet on an SP failing.  I trade 1-2-3 patterns for breakouts, and nothing else.  There simply is no safer method of doing so.

If it looks like the SP will hold, I’ll start to look for reversal signals.  These reversal signals can be from almost any system.  Price Action, EMA crossovers, Stochastic Kisses, even certain RSI crossovers.  It just doesn’t matter.  The SP adds credibility to any system that you choose to trade.

I’ll post more information regarding my favorite setups in the coming days and weeks.  If you’re interested in forex signals from market mover Edge, I’d love to have you!  Subscribe Here!