#SwingTradingStrategy The first key element for developing a swing trading strategy is the correct choice of the asset on which to operate. The best assets for swing trading are those with a high market capitalization and that also have a significant trading volume (like these). Thanks to the liquidity provided by the large number of trades, trends in these types of assets are defined much more clearly. Therefore, the lines of resistance or support that will delineate the fluctuations of the asset along that trend will also be much easier for the trader to identify.

This will allow the investor to feel much more secure when investing. If they notice that the price fluctuates within a certain range, then it will be beneficial to invest when the asset is near the lower limit and sell their holdings when it has risen and is close to a drop.

Secondly, the aforementioned trend lines must be defined. This is done by drawing a straight line on the price chart that connects the rising lows in the case of an upward trend or the declining highs in the case of a downward trend.

Once the primary trend is defined, it is necessary to delineate the amplitude of price fluctuations on which the swing trading strategy will be developed. When the price of an asset follows a certain trend, whether upward or downward, it does not usually do so in a straight line. Typically, the price makes corrections that bring the asset to touch the trend line before starting a new upward or downward movement, depending on the sign of the primary trend. These fluctuations lead to the asset's price drawing a 'sawtooth' profile.

Taking this into consideration, the most suitable patterns for developing a swing trading strategy are the so-called channels, in which the price moves