#SwingTradingStrategy 🌀 What Is Swing Trading?
Swing trading involves holding positions for a few days to several weeks, aiming to capture short- to medium-term price movements. It sits between day trading and long-term investing.
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🔧 Core Components of a Swing Trading Strategy
1. Choose the Right Market & Timeframe
✅ Markets: Stocks, ETFs, Forex, Crypto
⏱️ Chart Timeframes:
Entry signals: 1H, 4H
Trend confirmation: Daily chart
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2. Identify Trends & Setups
Use a trend-following or mean-reversion approach:
📈 Trend-following: Buy dips in an uptrend; sell rallies in a downtrend
🔄 Mean-reversion: Look for overbought/oversold conditions using RSI or Bollinger Bands
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3. Technical Tools
Moving Averages (MA):
20 EMA and 50 EMA crossover to confirm trend
RSI (Relative Strength Index):
Buy below 30 (oversold), sell above 70 (overbought)
MACD:
Look for bullish/bearish crossovers
Fibonacci Retracements:
Use 38.2%, 50%, and 61.8% levels for entries/exits
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4. Entry Criteria
Example:
Price pulls back to 50 EMA in an uptrend
RSI between 40-50 (not oversold)
MACD lines turning upward
🎯 Enter on confirmation candle (e.g., bullish engulfing, hammer)
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5. Exit Criteria
Profit Target: Set based on risk-reward (e.g., 2:1)
Stop Loss: Below recent swing low (or above swing high if short)
Trailing Stop: Optional—locks in profits as price moves in your favor
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6. Risk Management
Risk 1–2% of account per trade
Use position sizing calculators
Always use stop-loss orders
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7. Backtest & Journal
Test your setup on historical data
Keep a trading journal for every trade: entry/exit, reason, outcome, lessons
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🧠 Pro Tips
Don’t trade during low-volume hours
Avoid trades right before major economic news releases
Focus on high-probability setups—not every price move is a trade
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Would you like a ready-made swing trading plan PDF, or want this strategy coded into a backtestable script (e.g., for TradingView or Python)?