The daily chart is a simple swing trading strategy and all its entries are based on a daily timeframe. The main trend usually forms in a daily chart and it can continue until weeks or months. However, it takes patience when trading on a daily chart because the signals won’t appear every single day. You have to wait for days or even weeks for the signals to form, that is why many traders won’t trade on this timeframe.
We know that when the market is trending, there will always be a retracement or a pullback. In this case, you have to refer to the Fibonacci levels for a trading decision and the stochastic indicator for confirmation.
The advantage of trading using a daily chart is that you can gain more pips. It can also give you less stress.
Open a daily chart and put the stochastic indicator with the default settings (5, 3, 3) and Fibonacci retracement tool.
You must know how to use Fibonacci retracement.
You must know the reversal candlestick patterns for entry purposes.
The market must be in an upward direction or trending up.
Wait for a pullback or retracement then use the Fibonacci retracement tool. The price must hit the Fibonacci levels 38.2, 50, or 61.8
Check the stochastic indicator if it is oversold.
Place a buy stop order above the reversal candlestick.
Place stop loss 4-10 pips below the low of the candlestick.
Take profit should be 1:3 risk and reward ratio or take profit at the previous swing high.
The market must be in a downward direction or trending down.
Wait for a pullback or retracement then use the Fibonacci retracement tool. The price must hit the Fibonacci levels 38.2, 50, and 61.8.
check the stochastic indicator if it is overbought.
Place a sell stop order below the reversal candlestick.
Place stop loss 4-10 pips above the high of the candlestick.
Take profit should be 1:3 risk and reward ratio or take profit at the previous swing low.
How to install Daily Chart Forex Swing Trading Strategy?