#SwingTradingStrategy My go-to swing trading strategy revolves around capturing short- to medium-term price movements, typically spanning a few days to weeks, by leveraging technical analysis and market momentum in a disciplined trend-following approach. I start by identifying the overall trend using the 50-day and 200-day moving averages on a daily chart; a bullish trend is confirmed when the 50 MA is above the 200 MA and the price trades above both, while a bearish trend is the opposite. I then look for pullbacks to key levels like support/resistance, Fibonacci retracement zones (38.2% or 50%), or the 50 MA, confirmed by candlestick patterns such as a bullish engulfing for longs or bearish engulfing for shorts. To ensure momentum, I check the 14-period Relative Strength Index (RSI), targeting RSI above 50 (but below 70) for longs and below 50 (but above 30) for shorts, alongside a spike in volume to validate the breakout or breakdown. For entries, I go long when the price breaks above the pullback level with strong volume and a bullish candle, setting a stop-loss 1-2% below the recent swing low; for shorts, I enter on a breakdown below resistance with a stop above the swing high. Exits are planned with a 2:1 or 3:1 reward-to-risk ratio, targeting the next major resistance or support level, while using a trailing stop below the 20 MA or recent swing low after a 1:1 gain to lock in profits. If the trade stagnates for 5-10 days or shows reversal signals or RSI hitting overbought/oversold levels), I exit to free up capital. Risk management is critical: I risk no more than 1-2% of my account per trade, calculate position size based on the distance between entry and stop-loss, and avoid trading during major news events to sidestep volatility. For example in a bullish trend, pulls back to the 50 MA at $50, forms a bullish engulfing candle with RSI at 55 and a volume spike, I’d enter long at $51, set a stop at $49, and target $55 for a 2:1 reward. This strategy emphasizes simplicity, adaptability, and discipline to navigate markets effectively.
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