Swing trading strategy is a method that targets "price fluctuations" over a period of days to weeks, and its basic idea is:
Leveraging price waves
It looks for short-term trends (upward or downward) and enters trades to profit from reversals or continuations of movement.
Technical analysis
It relies on indicators such as Moving Averages, Relative Strength Index (RSI), and Candlestick Patterns to determine entry and exit points.
Risk management
Setting a "Stop-Loss" at a price level that limits losses, and a "Take-Profit" at a specific price target.
Timeframe
Medium timeframes (4-hour, daily, or 3-day) are typically used to monitor price movements without the need for real-time tracking.
Trading discipline
Adhering to the plan and not succumbing to emotions, while adjusting the position size according to capital.
In summary, the swing trader aims to take advantage of medium-term market movements through precise technical analysis and strict risk management.