Swing Trading: The Art of the Weekly Profile
1. The Weekly Profile Concept
The most powerful edge a swing trader has is knowing when the high or low of the week will likely form.
The Classic Bullish Week
If the weekly candle is going to be bullish, it will typically follow this sequence:
- Sunday/Monday: Open and trade lower (Manipulation).
- Tuesday/Wednesday: Create the Low of the Week (The Trap).
- Wednesday-Friday: Expansion higher (The Trend).
Strategy: Do not chase Monday's moves. Wait for the Tuesday/Wednesday reversal at the London Open.
2. Defining Market Structure Shift (MSS)
Swing traders live in the "Retracement." You enter when the daily trend is up, but the 4-hour chart is pulling back.
How to Validate an MSS
A true Market Structure Shift occurs when:
- Price takes out a Liquidity Pool (Stop Hunt).
- Price reverses aggressively with Displacement (large, energetic candles).
- Price breaks a structural Swing High with a candle body close.
3. Institutional Entry Models
Once the MSS has occurred, you need a precise entry point. Do not just buy blindly.
The Fair Value Gap (FVG)
An FVG is a three-candle pattern where the first and third candles do not overlap, leaving a gap. This represents an imbalance where Smart Money injected liquidity. Place your limit order at the start of the gap.
The Order Block
The Order Block is the last down-candle before the explosive move up (for a buy). When price returns to this candle, institutions defend their positions.
4. The Psychology of Holding
The hardest part of swing trading is not the entry; it is the Hold.
- The urge to close: Seeing unrealized profits vanish during a retracement is painful.
- Trust the Daily: If the Daily chart has not invalidated your trade, the 1-hour noise is irrelevant.
- Set and Forget: Place your stop at the invalidation point and your TP at the next weekly liquidity pool. Walk away.
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