Swing Trading The F.A.S.T. Method

Swing Trading the F.A.S.T. Method

Swing trading is based on identifying swings in stocks, commodities, and currencies that take place over a period of days. A swing trade may take a few days to a few weeks to work out. Swing trading is ideal for people who may not be able to trade during certain hours, or monitor their charts frequently (i.e. working a full-time job).

 The F.A.S.T. Method is our swing trading strategy that means "Fibonacci, Analyze Trend, Supply & demand, Trendlines". The overall setup of this strategy is to create a directional bias based on the current trend of the higher timeframe. You will then use Fibonacci, Supply & Demand, and Trendlines to enter a trade at a potential turning point before price continues in the direction on the overall trend. This strategy is best applied to the larger time frames (Wk, D, 4hr) for use in swing trading.

 Although ordered F.A.S.T., typically the order in which I will analyze will be as follows:

A: Analyze Trend - The very first thing I do when I open a fresh chart is go to the Weekly timeframe and decide what the overall trend bias is. Because I primarily swing trade, the main timeframes I use are the Weekly, Daily, and 4hr. I will decide the trend based on if price is making Higher Highs and Higher Lows, or Lower Highs and Lower Lows. Once i determine an overall trend bias, I move on to the next step.

S: Supply & Demand - I then begin drawing the major supply and demand zones on each chart, starting with the weekly. After I get the Weekly zones drawn, I drop down to the Daily and 4hr timeframes and do the same. At this time I will also being planning trades that are in alignment with the overall (Weekly) trend.

T: Trendlines - Trendlines alone dont hold enough weight for me, but when combined with a supply or demand zone, they can be very powerful. Trendlines are used mainly for confirmation, although they will not always be present for valid trades.

F: Fibonacci - The last step is fibonacci, and is only used for extra confirmation. It is usually a very nice and reliable setup when a Supply or Demand zone lines up with a Trendline and a Fibonacci level. Paired with trading in the overall trend direction, these setups can yield very powerful returns, and it is what we call the F.A.S.T. Method.

Day Trading The F.A.S.T. Method

Day trading is based on identifying opportunities in stocks, commodities, and currencies that take place over a period of a few minutes or hours. A day trade is typically opened and closed within the same trading day. Day trading is ideal for people who have more of an open schedule, and enjoy monitoring their charts frequently. A benefit of day trading is being able to close your profit (or loss) for the day, which puts your account at less exposure and allows you access to funds quicker.

Day Trading the F.A.S.T. Method is possible by using lower timeframes, typically the 4hr, 1hr, and 15 min. You can also use the Daily, 4hr, and 1hr time frames for slightly longer trades. Overall, it is best to pick 3 main timeframes and stick to those. When you analyze too many timeframes and charts, you may have a hard time identifying opportunities or making a trading decision.

Day Trade Live Example