#SwingTradingStrategy ** Unlocking Success: My Go-To Swing Trading Strategy **

Buy the Dip, Sell the Top: Easier Said Than Done!

Buy the dip and sell the top – it sounds so simple, doesn't it?

But determining which dip is truly the last one or when a peak has been reached is far from straightforward.

Even experienced traders often get it wrong. There are simply too many factors influencing price movements.

That's why risk management is strategic.

It's better to secure smaller, consistent profits, as losses are difficult to avoid entirely, rather than risking everything by waiting too long and potentially losing it all.

My primary swing trading strategy revolves around identifying strong trends and exploiting pullbacks. I favor assets exhibiting clear upward or downward momentum on daily or 4-hour charts.

My "go-to" involves a combination of technical indicators, primarily moving averages (MAs) and Relative Strength Index (RSI).

For entries, I wait for a price pullback towards a key moving average, typically the 20 or 50-period EMA, within an established trend. I then look for candlestick reversal patterns (e.g., hammer, bullish engulfing) confirming the end of the pullback and a resumption of the trend.

Confirmation from the RSI, ensuring it's not overbought or oversold at the point of entry, is also crucial.

Exiting a trade is equally disciplined.

My profit target is usually set at a previous resistance or support level, or a specific risk-to-reward ratio (e.g., 1:2).

I also employ a trailing stop-loss to protect profits as the trade moves in my favor, and I'll consider exiting early if significant bearish/bullish divergence appears on the RSI, signaling a potential trend reversal.

This methodical approach helps me capitalize on short-to-medium term price movements while managing risk effectively.