#SwingTradingStrategy Here's a breakdown of a basic yet effective swing trading strategy, suitable for stocks, ETFs, or even crypto:
📈 Swing Trading Strategy Outline
🎯 Goal:
Capture short- to medium-term gains (typically over a few days to a few weeks) from price “swings” in trending markets.
🔧 Strategy Components
1. Trend Filter
Objective: Trade only in the direction of the prevailing trend.
Use a 50-day EMA:
Price > 50 EMA = look for longs.
Price < 50 EMA = look for shorts.
2. Entry Signal
Use technical indicators and price patterns to time entries.
Long Setup:
Pullback to support or EMA in an uptrend.
Bullish candlestick pattern (e.g., hammer, engulfing).
RSI < 50 (oversold in an uptrend).
Optional: MACD crossover.
Short Setup:
Rally to resistance or EMA in a downtrend.
Bearish candlestick pattern.
RSI > 50 (overbought in a downtrend).
3. Risk Management
Risk only 1–2% of your account per trade.
Stop-loss: Below recent swing low (for long) or above swing high (for short).
Position size = Account risk / (Entry price - Stop-loss)
4. Profit Target
Aim for a 2:1 reward-to-risk ratio.
Partial exits at key levels (support/resistance, Fib