What is the Swing Trading Strategy?
The Swing Trading strategy is a medium-term trading approach aimed at profiting from price fluctuations that occur over a period ranging from several days to several weeks.
## Advantages of Swing Trading
1. **Medium-term duration**: Between day trading and long-term investing
2. **Multiple opportunities**: Can be applied to various markets and assets
3. **Time flexibility**: Does not require real-time monitoring like day trading
## Basics of the strategy
### 1. Analyzing the general trend
- Identifying the main market trend (upward, downward, sideways)
- Trading in the direction of the general trend increases the chances of success
# 2. Entry points
- Using technical indicators such as:
- Moving averages (50 days, 200 days)
- RSI (30 for oversold, 70 for overbought)
- MACD to confirm the trend
##3. Risk management
- Setting stop loss orders
- The ideal risk-to-reward ratio is 1:2 or more
- Setting profit targets