Swing trading is a strategy focused on capturing medium-term price movements. Unlike scalping or long-term investing, swing trading involves holding positions for several days to a few weeks, depending on market dynamics.
The main goal is to enter a trade when an asset shows signs of a new trend or a retracement after a strong move. Technical tools are key here—support and resistance levels, candlestick patterns, and indicators like RSI and MACD help identify these entry points.
Discipline and a good grasp of market structure are crucial. Swing trading helps avoid intraday noise and targets more meaningful price swings. However, risk management remains essential. Setting appropriate stop-loss levels and not overstaying positions can make a significant difference in performance.
This approach is particularly popular in volatile markets such as cryptocurrencies, where 5–15% price swings over a few days are common. Swing trading appeals to traders who prefer a thoughtful, patient strategy over constant trade monitoring.