#SwingTradingStrategy A swing trading strategy is a trading style that seeks to capture short to medium-term price movements, typically lasting from a few days to a few weeks.
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🔍 Key characteristics:
• Objective: profit from "swings" in asset prices.
• Duration of positions: from 2 days to a few weeks.
• Analysis used:
• Technical (charts, indicators like RSI, MACD, Moving Averages)
• Sometimes, light fundamental analysis to reinforce decisions.
• Most common markets: stocks, cryptocurrencies, forex, commodities.
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🧠 Common strategies:
• Breakout: enter when the price surpasses a resistance or support.
• Reversal (pullback): enter after a correction against the main trend.
• Chart patterns: such as triangles, flags, head and shoulders, etc.
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✅ Advantages:
• Less need for constant market monitoring (compared to day trading).
• Fewer fees and less stress.
• Can be done alongside another activity.
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⚠️ Risks:
• Sudden swings against the position.
• Exposure to overnight risk (news, unexpected events).
• Requires discipline and strict risk management (use of stop-loss and take-profit).