#SwingTradingStrategy My Swing Trading Strategy – Core Elements

1. Trend Identification

The first rule of my trading playbook: Never trade against the trend.

I start by identifying the dominant trend using:

Daily and 4-hour timeframes

50 EMA and 200 EMA crossovers

Trend line and channels

If the price is above the 200 EMA and forming higher highs and higher lows, it’s a long-biased trend. If below, I look for short opportunities.

2. Entry Setup – Timing Is Everything

Once I spot a trending asset, I wait for a pullback or breakout.

My entry tools:

Fibonacci retracement (38.2% or 61.8% levels)

Support/resistance zones

Bullish/bearish candlestick patterns (engulfing, pin bars)

MACD crossover or RSI divergence for confirmation

Patience is key. I don’t chase candles — I wait for price to come to me.

3. Risk Management – My Golden Rule

Risk management makes or breaks a trader. Here’s what I follow religiously:

1–2% risk per trade

Always trade with a stop-loss just beyond the invalidation level

Position sizing based on volatility and ATR (Average True Range)

I’d rather miss a trade than overexpose my capital.

4. Exit Strategy – Where the Profit Lies

My targets are based on:

Risk-to-reward ratio (minimum 1:2)

Next resistance/support zones

Partial profit booking if price hits 75% of the target

If price moves in my favor, I trail my stop-loss to lock in profits and let the rest ride.

5. Market Conditions & News Awareness

I avoid trading during high-impact news events, especially around FOMC, CPI, or earnings reports (in stocks). Fundamentals can override technicals in those moments, and I prefer to stay out when the market is irrational.

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