#SwingTradingStrategy

Swing trading is a trading style where you hold positions from a few days to a few weeks, capturing average price 'swings'.

🤌🏻 Why is this cool?

  • You're not 'tied' to the screen 24/7 like in day trading;

  • It can be combined with a main job or studies;

  • The balance between risk and profit is optimal for many.

🫱🏻‍🫲🏼 Key steps of the strategy:

  1. Trend definition: use EMA (for example, 20 and 50) on daily or 4-hour charts to understand the direction of movement.

  2. Finding entry points: look for bounces from support or resistance levels, candlestick patterns (pin bar, engulfing).

  3. Risk management: set a stop-loss below the entry level to limit losses. The ideal risk/reward ratio is from 1:2.

  4. Profit taking: close your position when the trend starts to weaken or you reach your target level.

    🫶🏻 Tip for beginners

Don't rush to open positions without a clear plan. Patience and discipline are your best allies.

🫵 Question for you:

What tools or indicators do you use for swing trading? Share in the comments!

#SwingTrading ##SwingTradingStrategy #cryptotrading #BinanceSquare