This allows swing traders to set tight protective stops.
Not exact matches
Charts that have violent up and down
swings are not considered to have solid chart structure as I like to place my stops at 10 - day highs or 10 - day lows and if the charts have a tight pattern that will
allow the
trader to minimize risk which is what trading is all about and if the chart has big
swings your stop will be further away
allowing the possibility of larger monetary loss.
One of the reasons why
swing trading is such a huge advantage to the retail
trader, is that it
allows you to skip all the market «noise» of short time frames, like those under the 1 - hour chart.
Swing trading
allows individual
traders like us to exploit the strong short - term moves created by large institutional
traders who can not move in and out of the market as quickly.
They
allow the
trader to compare the indicator
swings to price
swings, rather than having to compare price to price.
A shorter term moving avenge works best in a sideways trending market,
allowing the
trader to capture more of the shorter
swings.
So there is definitely a big
swing when it comes to the dollar amounts of investment
allowed to make both big and small
traders happy.
Consequently, it
allows individual
traders to take advantage of multiple aspects of digital currencies often without the knowledge of the pitfalls of trading, such as high volatility that leads to major price
swings.