🔁 Swing Trading Strategy Summary
Goal:
Capitalize on short- to mid-term price movements, typically held for 2–10 days, within a broader trend.
📊 Key Strategy Elements
Trend Identification
Use the 200 EMA to determine market direction:
Price above = bullish trend
Price below = bearish trend
Entry Conditions (Bullish Example)
Wait for a pullback to a support zone or dynamic support (like the 21 EMA)
Look for confirmation via:
Bullish candlestick patterns (e.g., hammer, engulfing)
RSI around 40–50
Volume increase during bounce
Entry Point
Enter on the breakout of the confirmation candle
Optionally, scale into the position near the pullback zone
Profit Targets
Prior swing highs/lows
Fibonacci extension levels (e.g., 1.618)
Risk-reward based (aim for at least 2:1)
Stop-Loss Placement
Below the recent swing low for long trades
Above the recent swing high for short trades
Limit risk to 1–2% of your capital per trade
⚙️ Recommended Indicators
200 EMA – to confirm trend direction
21 or 50 EMA – for dynamic support/resistance
RSI (14) – to assess momentum
Volume – to validate price strength
✅ Trade Management Tips
Avoid chasing price — focus on clean pullbacks
Secure partial profits at 1R and adjust stop-loss to breakeven
Skip trades during choppy, sideways conditions
Keep a detailed trade journal to refine performance
🧠 Pro Tip:
Swing trading is a game of discipline and timing — wait for high-probability setups and avoid forcing trades.
