#SwingTradingStrategy Definition:
Swing trading is a short- to medium-term trading strategy where traders aim to capture price swings (up or down) that typically last from a few days to a few weeks.
Core Principles:
Trend Following or Reversal: Traders may follow the prevailing trend or trade against it at key reversal points.
Technical Analysis Focus: Heavy use of chart patterns, indicators (like RSI, MACD, Moving Averages), and support/resistance levels.
Risk Management: Stop-loss and take-profit levels are essential to manage risk and lock in gains.
Time Commitment: Less time-intensive than day trading; trades are not closed daily but monitored periodically.
Common Indicators Used:
Moving Averages (50-day, 200-day): To identify trend direction.
Relative Strength Index (RSI): To spot overbought or oversold conditions.
MACD: To confirm trend changes.
Volume: To validate breakout or reversal strength.
Goal:
Profit from price "swings" within an established trend or near key technical levels without needing to monitor markets all day.
Let me know if you want an example or a simple strategy template.