#SwingTradingStrategy Swing trading is a trading strategy that aims to capture short- to medium-term gains in a financial asset (like stocks, crypto, forex) over a few days to several weeks. It’s based on identifying and riding the "swings" or price movements within a trend.
🔄 How It Works
1. Find a setup: Look for a stock/asset that is ready to “swing” in price.
Example: It's bouncing off a support level or breaking out of resistance.
2. Enter a trade: Buy (go long) if expecting a rise, or short-sell if expecting a fall.
3. Set targets:
Take profit (e.g., +10%)
Stop-loss (e.g., -3%) to manage risk
4. Hold for a few days: Wait for the price to move in your direction.
5. Exit once the target is hit or momentum weakens.
📊 Common Indicators Used
RSI (Relative Strength Index) – Measures overbought or oversold conditions
MACD (Moving Average Convergence Divergence) – Identifies trend changes
Candlestick patterns – Like doji, engulfing, or hammer
Trendlines & chart patterns – Triangles, flags, head and shoulders
✅ Pros
Less stressful than day trading
More flexible timing (don’t need to watch the screen all day)
Can work with a full-time job
❌ Cons
Risk of overnight news affecting price
Requires technical knowledge
Trades don’t always go as planned.