#SwingTradingStrategy Swing trading strategy is a method that relies on taking advantage of medium-term price movements (days to weeks) rather than day trading or long-term trading by selecting the appropriate instrument.
Focus on stocks or cryptocurrencies with high liquidity (large trading volume) and moderate volatility, and determine the market direction.
Use two moving averages (e.g., 50 and 200 days) to see if the trend is up or down:
Price above the two moving averages → Uptrend → Look for a buying opportunity.
Price below the two moving averages → Downtrend → Look for a selling opportunity (or stay away).
Finding the entry point: Identify support and resistance levels (price reversal points):
For buying: Near a clear support level.
For selling: Near a clear resistance level.
And make sure of an additional signal like a reversal candle or an RSI indicator indicating overbought/oversold.
Placing buy and sell orders
Use a limit order at the target price to enter.
Set the stop loss below support (e.g., 1–2% under the entry point).
Set the take profit at the next resistance or based on a risk/reward ratio of at least 1:2.
Trade Management
Monitor price movements daily.
If the price rises and achieves part of the target, move the stop loss with the price (Trailing Stop) to secure profits.
Capital Management
Do not risk more than 1–2% of your total balance on a single trade.
Keep a record of each trade: entry and exit point, reason, and outcome.
And before you start: wait for a clear signal before entering; don't rush just because of the 'opportunity'.
Don't close the trade early; let the trend develop according to your plan.
Follow economic news as it may suddenly affect prices.
Regularly review your trading record to learn from your mistakes and improve your skills.
In summary: Choose an appropriate instrument, determine the direction, enter at support/resistance with a clear stop loss, and manage risks wisely. With these simple steps, you can effectively apply the swing trading strategy.