Swing Trading Strategy is a trading method that lies between short-term and long-term trading, with the main goal of capturing profit within a "volatile range". The holding period typically ranges from a few days to a few weeks, making it suitable for investors who want to actively trade but do not have the time to monitor the markets closely.
Here are common core strategies for swing trading:
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✅ Common Swing Trading Strategies:
1. Technical Indicators for Entry and Exit:
Use RSI, MACD, Bollinger Bands, etc., to determine overbought and oversold conditions, and find reversal points.
2. Trend Pullback Buy Method:
Wait for price pullbacks to support levels during an upward trend, then enter.
3. Range Breakout:
After the stock price consolidates, trade in the direction of the breakout, either upward or downward.
4. Moving Average System for Direction Judgement:
Use the 20-day and 60-day moving averages to determine bullish or bearish direction and follow the larger trend.
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✅ Advantages:
• No need to monitor the market all day
• Lower risk compared to day trading, more flexible returns than long-term holding
• Suitable for technical analysis enthusiasts