#SwingTradingStrategy
Supports and Resistances
Swing trading is based on identifying short and medium-term trends. A fundamental strategy is to trade at key support and resistance levels.
• Support: Price level where buying pressure exceeds selling pressure, stopping or reversing a downtrend.
• Resistance: Price level where selling pressure exceeds buying pressure, stopping or reversing an uptrend.
How to trade?
1. Identify the levels: Look for relevant highs and lows on the chart. Connect several lows to draw supports and several highs to draw resistances.
2. Wait for confirmation: Do not trade when touching the level. Wait for a confirmation signal, such as a reversal candle or a continuation pattern.
3. Set your stop-loss: Place the stop-loss just below the support for buys or just above the resistance for sells to protect your capital.
4. Define your profit target: Look for the next resistance level as a target for buys or the next support level for sells.
In this example of an uptrend, Fibonacci is drawn from the minimum to the maximum. The price retraces to the 61.8% level before continuing its upward movement. A swing trader could have looked for a buying opportunity in this
zone.⬇️⬇️⬇️$SOL