The Swing Trading Strategy is a trading approach that involves holding positions for several days to weeks with the aim of benefiting from medium-term price movements, whether upward or downward.
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✅ Core Idea:
The swing trader buys assets (such as stocks, currencies, cryptocurrencies...) when expecting them to move in a certain direction over a short to medium period (usually from two days to two weeks), and sells them for a good profit before the trend changes.
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🧠 Characteristics of Swing Trading:
Element Description
Trade Duration From one day to several weeks
Objective Capture "waves" or "swings" of price within the overall trend
Tools Primarily technical analysis, sometimes fundamental analysis
Market Type Works in both bullish and bearish markets
Frequency Less than daily and more than investing
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📊 Tools used by the swing trader:
Candlestick Patterns
Technical indicators such as RSI, MACD, Moving Averages
Support and Resistance Areas
Chart patterns such as peaks and troughs, head and shoulders...
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🟢 Practical Example:
1. The trader sees a stock moving within an upward price channel.
2. Buys when the price approaches support.
3. Sells when the price approaches resistance or shows reversal signals.
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🔴 Advantages:
Does not require constant market monitoring like day trading.
Less psychological pressure than day trading.
Can be profitable in both bullish and bearish markets.
⚠️ Drawbacks:
Requires patience.
May be affected by sudden news or market gaps.
May not be suitable in sideways markets (without a clear trend).