What is Swing Trading?
Swing trading is a popular trading style where traders aim to capture short- to medium-term price moves in the market, typically lasting from a few days to a few weeks. Unlike day trading, which focuses on quick trades within a single day, swing trading allows you to hold positions longer to benefit from “swings” or trends in price.
✅ How Swing Trading Works
-
Swing traders analyze technical indicators, chart patterns, and price action to identify the start of a trend or reversal.
-
They enter trades at support or demand zones and exit near resistance or supply zones.
-
The goal is to catch significant price moves between the start and end of a trend.
-
It requires less screen time than day trading but more patience than long-term investing.
🔹 Key Tools Used in Swing Trading:
-
Moving Averages: To identify trend direction
-
RSI (Relative Strength Index): To find overbought or oversold conditions
-
Candlestick Patterns: For entry and exit signals
-
Support & Resistance Zones: To set targets and stop losses
💡 Advantages of Swing Trading:
-
Suitable for people who can’t monitor the market all day.
-
Allows trading on multiple timeframes (4H, Daily).
-
Potential for good profits with moderate risk.
