#SwingTradingStrategy Explanation of Swing Trading Strategy
## What is Swing Trading Strategy?
Swing Trading Strategy is a medium-term trading method aimed at achieving profits from price fluctuations that occur over a period ranging from several days to several weeks.
## Advantages of Swing Trading
1. **Medium-term time frame**: Between day trading and long-term investing
2. **Multiple opportunities**: Can be applied to various markets and assets
3. **Time flexibility**: Does not require real-time monitoring like day trading
## Basics of the strategy
### 1. General trend analysis
- Identify the main market trend (upward, downward, sideways)
- Trading in the direction of the general trend increases the chances of success
### 2. Entry points
- Use technical indicators such as:
- Moving averages (50 days, 200 days)
- RSI indicator (30 for oversold, 70 for overbought)
- MACD to confirm the trend
### 3. Risk management
- Set stop-loss orders
- Ideal risk-reward ratio of 1:2 or more
- Set profit targets
## Practical example
1. **Choosing a stock**: A stock in an upward trend with a recent correction
2. **Entry**: When the price rebounds from a support level with confirmation from the RSI indicator above 30
3. **Stop-loss**: Below the last support level
4. **Profit target**: At a nearby resistance level or ratio. However, this exhaustion is precisely what upward market retracements are supposed to produce: "Many feel it