Intro
Swing trading focuses on capturing price movements over days to weeks.
It sits between:
- scalping
- long-term investing
The goal is simple:
catch structured moves without needing constant screen time
What is Swing Trading
Swing trading looks for:
- trends
- pullbacks
- reversals
Using a mix of:
- technical analysis
- market context
Key Indicators
Use a small set of tools for confirmation.
RSI
- Below 30 → oversold
- Above 70 → overbought
Moving Averages
- 50 MA → short-term trend
- 200 MA → long-term trend
MACD
- Crossovers signal momentum shifts
- Works best near key levels
Volume
- Confirms strength of moves
- Important for breakouts
Bollinger Bands
- Helps identify range conditions
- Price reacting at bands can signal reversals
Fibonacci
- Common pullback levels:
- 38.2%
- 50%
- 61.8%
Swing Trading Process
1. Identify the Trend
Use higher timeframes:
- Daily
- Weekly
Trade with the direction.
2. Mark Key Levels
Focus on:
- support
- resistance
These define your trading zones.
3. Find Entry
Look for:
- pullbacks
- reactions at levels
- confluence with indicators
4. Set Target
Base targets on:
- previous highs
- resistance zones
5. Define Risk
Place stop-loss:
- below support
- below recent swing low
6. Refine Entry
Use lower timeframes:
- 4H
- 1H
For better timing.
Example Setup
- Trend → uptrend on daily
- Entry → pullback to 50 MA
- Confirmation → RSI reset, MACD crossover
- Target → previous high
- Stop → below swing low
Key Rules
- Trade with the trend
- Wait for pullbacks
- Avoid chasing price
Risk Management
- Risk 1–2% per trade
- Always use a stop-loss
- Keep position size controlled
Final Thoughts
Swing trading requires patience.
Trades may take:
- days
- or weeks
But the advantage is:
fewer trades with clearer structure
Bottom Line
Wait for the setup.
Trade the structure.
Let it play out.
