#SwingTradingStrategy Swing Trading is a speculative trading strategy in financial markets that seeks to capture short- and medium-term price movements, known as "swings." Traders who employ this strategy hold their positions for several days or even weeks, unlike day traders who close all their trades at the end of the day, or long-term investors who hold assets for months or years.

How does Swing Trading work?

The fundamental principle of swing trading is based on the observation that markets rarely move in a straight line. Instead, they experience ups and downs, creating "swing peaks" (maximum prices) and "swing valleys" (minimum prices). The goal of the swing trader is to identify these movements and enter a position to benefit from a significant portion of the price swing, without needing to accurately predict the exact points of the highs and lows.

Swing traders can seek profits both when the price goes up (buying and then selling at a higher price) and when the price goes down (short selling and then buying back at a lower price).