In this article I look at how the original position trading approach might be enhanced to benefit from the shorter-term swing as well as the longer-term trend.

Here I look at the shorter-term swing trading approach and how you can switch automatically from swing trading to trend following. In my previous article I alluded to the fact that a swing trader should always place a protective stop order just below the observed trading range.

The trading pattern involves first establishing a long position at (let’s say) £1-per-point, at what you consider to be the bottom of the trading range. You then reverse the trade at what you judge to be the top of the trading range.