#SwingTradingStrategy Swing trading is an investment strategy that seeks to capture short to medium-term price movements — typically holding a position for a few days to a few weeks. Unlike day trading (same-day operations) or buy and hold (long-term investment), swing trading positions itself in between: it takes advantage of market fluctuations (“swings”) without requiring constant attention.

🧭 How does swing trading work?

The trader analyzes charts and trends to identify entry and exit points based on technical patterns, indicators (such as moving averages, RSI, MACD) or even fundamentals. The idea is to buy when the asset shows signs of appreciation and sell when it reaches a profit target — or vice versa, in the case of short positions.

✅ Advantages

Less emotional pressure than day trading

More time for analysis and decision-making

Can be done alongside other activities

Allows capturing broader market movements

⚠️ Risks

Exposure to price gaps (sudden changes between trading sessions)

Need for discipline with stop loss and risk management

May require more capital to withstand fluctuations

🧪 Practical example

Imagine that Bitcoin breaks a technical resistance and starts to rise. A swing trader might buy BTC at US$ 98.000 with a target at US$ 105.000 and a stop at US$ 95.000. They hold the position for a few days, monitoring the movement, and take profit when the target is reached.

FOLLOW ME