#SwingTradingStrategy
What is swing trading on a cryptocurrency exchange?
Swing trading is a trading strategy on a cryptocurrency exchange and beyond, that allows traders to profit from medium-term trends. In this case, market players earn income from fluctuations in the asset's price, which last for several days or weeks. This model differs from day trading in the duration of holding positions and the degree of price fluctuations.
Key principles of the swing trading strategy
The main principle of swing trading is to profit from medium-term trends. What does this mean in practice? Traders open and hold positions for several days to weeks to profit from price changes during this period.
Key tenets of the strategy:
A trader must be able to identify medium-term trends.
Successful swing trading requires technical analysis, the ability to work with price charts and various indicators to find entry and exit points in the market.
One must learn to work with fundamental analysis of the cryptocurrency market, understanding which external factors (news, economic and political events) influence the prices of digital assets.