#MyTradingStyle Swing trading focuses on taking a position within a larger move. It entails holding a trade over several days or weeks to take advantage of short to medium-term market movements.

In swing trading, the goal is to spot a trend and then trade the market dips and peaks that provide opportunities for entry points. Technical analysis is used to identify two types of market movements: ‘swing high’, which is when the price moves upwards, and ‘swing low’, which is when the market price declines.

Based on the highs and lows identified, the trader can make the decision to go long or short on the swing point. Swing traders often search for markets with a high degree of volatility, as these are the markets in which ‘swings’ are most likely to occur.