#SwingTradingStrategy

Swing trading captures short- to medium-term price movements, holding positions for days to weeks. It balances the fast pace of day trading and the patience of long-term investing, using technical analysis (80-90%) with some fundamental factors.

Core Strategies

1. Moving Average Crossovers – Buy when a shorter MA (e.g., 10-day) crosses above a longer MA (e.g., 50-day); sell on the opposite crossover.

2. Support & Resistance – Buy near support in uptrends, sell near resistance in downtrends.

3. Breakout Trading – Enter when price breaks key levels with volume confirmation.

4. Bollinger Bands – Buy near lower band in uptrends; sell near upper band in downtrends.

5. Momentum Trading – Follow strong trends using RSI (avoid overbought/oversold extremes).

Key Indicators

- Moving Averages (SMA/EMA) – Identify trends.

- RSI (14-period common) – Gauge overbought/oversold conditions.

- MACD – Signal line crossovers confirm trends.

- Volume– Validate breakouts/breakdowns.

Risk Management

- Risk 1-2% per trade of total capital.

- Set stop-losses below support (longs) or above resistance (shorts).

- Aim for 1:2+ risk-reward ratio.

- Avoid overnight risk before major news events.

Stock Selection

- Liquid stocks (500k+ avg. volume).

- Volatile enough for swings (check ATR).

- Align with strong sectors/market trends.

Timeframes

- Daily charts for primary analysis.

- 4-hour/hourly for precise entries.

Common Mistakes

- Overtrading.

- Ignoring stop-losses.

- Chasing performance.

Getting Started

- Learn technical analysis.

- Practice with a demo account.

- Start small, focus on discipline.

Swing trading suits those with limited screen time who can follow a structured plan. Success requires patience, risk management, and consistency.