#SwingTradingStrategy

Swing trading focuses on capturing portions of larger market moves by trading between major price highs ("swing highs") and lows ("swing lows"). Rather than trying to catch the exact tops and bottoms, traders aim to capture meaningful portions of these price swings.

The trading direction depends on the overall trend - in uptrends, traders look to "buy the dips" with long positions from lows to highs, while in downtrends, they aim to "sell the rallies" with short positions from highs to lows.

Stop losses are crucial for risk management: for long positions, stops are typically placed below swing lows (since breaking a swing low could signal a trend reversal), while for short positions, stops go above swing highs.