#SwingTradingStrategy 🎯 What is Swing Trading?

Swing Trading is a strategy that aims to capture price movements in the short to medium term, generally from several days to weeks. The goal is to enter when a strong movement begins and exit before it reverses.

🧠 Key Principles

1. Capturing price “swings” in bullish or bearish trends.

2. Based on technical analysis rather than fundamentals.

3. Requires patience and discipline, without the need to watch the market all day (as in day trading).

🛠️ Most Used Tools

Technical Indicators:

Moving Average (MA): Identifies the overall trend.

RSI (Relative Strength Index): Detects overbought or oversold conditions.

MACD: Confirms momentum crossovers.

Fibonacci: Finds key support/resistance levels.

Chart Patterns:

Triangles, flags, head and shoulders, etc.

Volume: Confirms the validity of movements.

📋 Example of Basic Strategy

1. Identify a clear trend on a timeframe such as 4H or daily.

2. Wait for a pullback towards a support (in an uptrend) or resistance (in a downtrend).

3. Confirm with indicators (e.g.: RSI near 30 for buying or 70 for selling).

4. Enter the trade when there is a reversal signal (engulfing candle, MA crossover, etc.).

5. Use stop loss and take profit based on risk/reward (e.g.: 1:2).

✅ Advantages

Less stress than day trading.

Compatible with people who work or study.

Requires fewer trades, but with the potential for good profit per trade.

⚠️ Risks and Common Mistakes

Not using stop loss.

Entering late or with weak signals.

Trading in sideways markets (without a clear trend).

Over-leveraging.

🕒 Recommended Timeframes

General analysis: daily (1D).

Entry and management: 4H or 1H.