#SwingTradingStrategy

✅ 1. Identify the Right Market Conditions

Swing trading works best in stable or trending markets, not highly volatile or choppy conditions. Tools like:

• ADX (Average Directional Index) to gauge trend strength

• VIX (Volatility Index) to assess market volatility

🔍 2. Stock Screening Criteria

Use a screener to find strong setups. Key filters:

• High relative volume (RVOL > 1.5)

• Price above 20/50/200 EMA (for bullish trades)

• RSI between 40-60 for potential breakout plays

• ATR for volatility analysis (choose higher ATR for larger swings)

Platforms like Finviz, TradingView, or ThinkOrSwim can be used.

📈 3. Technical Setup

Common swing trading patterns:

• Bullish/Bearish Flags

• Cup and Handle

• Double Bottom/Top

• Breakouts from consolidation

Confirm with indicators:

• Moving Averages (20 EMA crossover)

• RSI divergence

• MACD crossovers

• Volume confirmation

📅 4. Entry & Exit Rules

Entry Triggers:

• Price breaks above a key resistance on high volume

• Retest of support (bounce) after breakout

Exit Targets:

• Use Fibonacci extensions for target zones

• ATR-based profit target (e.g., 2x ATR)

• Exit partial position at 1st target, move stop to breakeven

🛡️ 5. Risk Management

• Risk only 1–2% of your capital per trade

• Always set a stop-loss based on technical levels (below support, or 1.5x ATR)

• Position sizing formula:

Position Size = (Account Risk per Trade) / (Entry Price - Stop Loss)