View my earnings and investment portfolio details. Follow me to learn investment techniques. Swing trading is a medium to short-term trading strategy aimed at capturing medium to short-term price fluctuations in the market. Here are some common swing trading strategies:
Trend Following Strategy
• Identify Trends: Use tools like moving averages; for example, when the short-term moving average crosses above the long-term moving average, it may indicate an upward trend; conversely, it indicates a downward trend.
• Confirm Signals: Combine with indicators such as the Relative Strength Index (RSI); when the RSI value exceeds 70, the market may be overbought, and the upward trend may soon reverse; below 30, it may be oversold, and the downward trend may soon reverse.
• Entry and Exit: In an upward trend, buy when the price retraces near the short-term moving average, and sell when the price breaks below the short-term moving average or shows a clear reversal signal.
Range Trading Strategy
• Determine the Range: By observing price movements, identify the high and low points of price fluctuations to form a range.
• Buy and Sell Actions: Buy when the price approaches the bottom of the range, and sell when it approaches the top of the range.
• Set Stop Loss: Set stop-loss levels below the bottom of the range and above the top of the range to prevent significant losses if the price breaks out of the range.
Breakout Trading Strategy
• Identify Key Levels: Identify key support and resistance levels, such as previous highs, lows, and important moving averages.
• Confirm Breakouts: When the price breaks through key levels with increased volume, it is a signal to enter. For example, when the stock price breaks above the upper limit of a previous range with volume increasing by more than 50% compared to the average volume over the last 5 days.
• Stop Loss and Take Profit: After a breakout, set the stop-loss near the breakout level and determine the take-profit level based on target profits or subsequent resistance levels.
The above content is compiled from public information and does not constitute investment advice.