#SwingTradingStrategy What is Swing Trading?
Swing trading targets short to medium-term movements, typically holding positions from 1 day to several weeks. The goal is to capture a portion of a trend, not the entire trend.
🛠️ Key Components of a Swing Trading Strategy
1. 🧭 Setup of the Trade & Market Context
Trade only during clear market conditions (uptrend, downtrend, or range).
Use higher time frames (1D, 4H) to define the trend; lower time frames (1H, 15m) for entries.
2. 📊 Technical Indicators that Work
Tool Use Case
Moving Averages (50/200 EMA) Direction of the trend, golden/dead cross
RSI (Relative Strength Index) Overbought/Oversold zones (30/70)
MACD Momentum & divergence detection
Fibonacci Retracement Entry/exit zones after the movement
Volume Confirms breakouts or false breakouts
3. 🎯 Entry Strategy
Look for these entry triggers:
Price retraces to support or EMA + bullish candle (e.g., engulfing)
RSI crosses upward from oversold
MACD lines cross above 0
Breakout tests are performed with volume