#SwingTradingStrategy You likely meant Swing Trading, a common trading style in stocks, forex, and crypto. Here’s a clear and short explanation of how it works and a basic strategy you can use:
📌 What is Swing Trading?
Swing trading aims to capture short- to medium-term price moves (typically 2–10 days, sometimes up to a few weeks). Traders buy low and sell high (or vice versa with shorting), based on technical and/or fundamental analysis.
🧠 Core Swing Trading Strategy
✅ 1. Identify the Trend
Use indicators like:
Moving Averages (MA): 20-day and 50-day to find the trend.
MACD / RSI: For momentum and overbought/oversold signals.
✅ 2. Entry Signal
Buy Setup:
Price pulls back to support in an uptrend.
RSI near 30 or bullish crossover on MACD.
Sell/Short Setup:
Price rallies to resistance in a downtrend.
RSI near 70 or bearish crossover.
✅ 3. Set Stop Loss
Below recent swing low (for longs) or above swing high (for shorts).
Typically 1.5%–3% risk per trade.
✅ 4. Set Target
Aim for 1.5x to 3x your risk (risk/reward ratio).
Exit at resistance or use trailing stop.