#SwingTradingStrategy
✅ Swing Trading Strategy: “Pullback in Trend”
This strategy rides short- to medium-term trends, typically holding trades from 2 days to 2 weeks.
---
🔧 Tools Needed:
Timeframe: 4H or Daily (D1) chart
Indicators:
50 EMA (Exponential Moving Average) → for trend direction
RSI (14) → to spot overbought/oversold
MACD → for momentum confirmation
Support & Resistance levels (drawn manually or via auto tools)
---
📈 Buy (Long) Setup:
1. Trend Filter: Price is above 50 EMA → Uptrend
2. Pullback Signal:
RSI dips below 40 (not below 30 ideally)
Price pulls back to a support zone or trendline
3. MACD Histogram starts turning upward or MACD line crosses signal line upward
4. Enter on confirmation candle (e.g., bullish engulfing)
🎯 Target:
Next resistance level
Or 1.5–2x the stop-loss distance
❌ Stop-Loss:
Below recent swing low
Or just below the 50 EMA
---
📉 Sell (Short) Setup:
1. Trend Filter: Price is below 50 EMA → Downtrend
2. Pullback Signal:
RSI rises above 60
Price pulls back to a resistance zone
3. MACD Histogram starts falling or MACD line crosses signal line downward
4. Enter on bearish confirmation candle
🎯 Target:
Next support level
Or 1.5–2x the stop-loss distance
❌ Stop-Loss:
Above the swing high
Or above the 50 EMA
---
📋 Example:
Say BTC is in an uptrend on the daily chart.
Price is above 50 EMA
Pulls back near previous support (RSI = 38)
MACD crosses up
📌 You enter LONG, set SL below last swing low, and TP near next resistance.
---
🔐 Risk Management:
Risk 1–2% of your account per trade
Always set SL and TP in advance
Avoid trading during major news (like FOMC)