#SwingTradingStrategy Swing trading aims to capture shorter-term price movements within larger market trends.

Swing trading is a trading strategy that aims to profit from capturing portions of larger market movements by trading between major price highs ("swing highs") and lows ("swing lows"). Rather than attempting to catch the exact market tops and bottoms, swing traders focus on identifying and riding the trend's momentum.

The strategy revolves around two key principles:

In uptrends: Traders look to "buy the dips," entering long positions at swing lows

In downtrends: Traders aim to "sell the rallies," entering short positions at swing highs

Risk management is emphasised through strategic stop loss placement. For long positions, stops are placed below swing lows, while for short positions, stops go above swing highs. This approach helps protect against potential trend reversals.

Traders often use a combination of technical indicators to identify opportunities. Moving averages help determine the overall trend direction (up when price is above, down when price is below), while momentum indicators like RSI and stochastics help time entry and exit points. For example, in uptrends, traders might enter when the momentum indicator crosses out of oversold territory, and exit on overbought signals.

While swing trades are traditionally thought to last from several days to weeks, the text emphasises that these principles can be applied to various timeframes, including shorter intervals like 30-minute charts. The core concept remains consistent: trading shorter-term moves within the context of a longer-term trend.