The Swing Trading Strategy is a trading method that involves holding positions for several days to weeks to profit from medium-term price movements, whether upward or downward.
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✅ Core Idea:
The swing trader buys assets (such as stocks, currencies, cryptocurrencies...) when expecting they will move in a certain direction over a short to medium period (usually from two days to two weeks), and sells them when a good profit is achieved before the trend changes.
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🧠 Characteristics of Swing Trading:
Element Description
Trade duration From one day to several weeks
Goal Capturing "waves" or "swings" in price within the overall trend
Tools Primarily technical analysis, and sometimes fundamental analysis
Market Type Operates in bullish and bearish markets
Frequency Less than daily and more than investment
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📊 Tools used by the swing trader:
Candlestick charts
Technical indicators like RSI, MACD, moving averages (Moving Averages)
Support and resistance areas
Chart patterns like peaks and troughs, head and shoulders...
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🟢 Practical Example:
1. The trader sees a stock moving within an upward price channel.
2. Buys when the price approaches support.
3. Sells when the price approaches resistance or shows reversal signals.
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🔴 Advantages:
Does not require continuous market monitoring like day trading.
Less psychological stress than fast speculation.
Can be profitable in both bullish and bearish markets.
⚠️ Disadvantages:
Requires patience.
May be affected by sudden news or market gaps.
May not be suitable in sideways markets (without a clear trend).