#SwingTradingStrategy 🔄 Swing Trading: Essence

The goal is to catch the market's “waves”: buying at local lows and selling at trend peaks (and vice versa for shorts). Positions are held from a few days to a few weeks.

📈 Key Components of the Strategy

1. Trend Identification

Use EMA 20/50/200:

EMA20 > EMA50 → short-term upward trend.

EMA50 > EMA200 → medium-term bullish trend.

Also: trend channels, support/resistance lines, price action.

2. Entry into Position

Buying:

Price bounces off support or EMA20.

RSI < 40–45: entry on oversold conditions.

MACD bullish crossover (MACD line crosses the signal line from below to above).

Confirmation with candlestick patterns: Bullish engulfing, Hammer.

Selling:

Price tests a resistance level or the upper boundary of the channel.

RSI > 70: overbought.

MACD bearish crossover.

Candlestick signals: Shooting star, Bearish engulfing.

3. Setting Stop Loss / Take Profit

Stop Loss — below the local minimum (buy) or above the maximum (sell).

Take Profit — at previous support/resistance levels, or with a Risk:Reward ratio of at least 1:2.

4. Position Management

Partial exit upon reaching 50–75% of the target.

Move stop to break-even.

Positions can be added on retests.