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2. Intermediate Strategies

Swing trading


Swing trading is a medium-term trading strategy where you can hold trades for days or even weeks.

The timeframes you’ll trade on are usually the 1-hour or 4-hour.

As a swing trader, your concern is to capture “a single move” in the market (otherwise called a swing).

So you’ll likely:

  • Buy Support
  • Sell Resistance
  • Trade breakouts
  • Trade pullbacks
  • Trade the bounce of the moving average

Thus, it’s important to learn technical concepts like Support & Resistance, candlestick patterns, and moving average.

Here’s an example of swing trading on USD/JPY:

Now, let’s discuss the pros and cons of swing trading…

The Pros:

  • Don’t have to quit your full-time job to be a swing trader
  • It’s possible to be profitable every year because you have more trading opportunities

The Cons:

  • Won’t be able to ride big trends
  • Have overnight risk

Now, if you want to learn more about swing trading, then The Complete Guide to Finding High Probability Trading Strategy will help immensely.

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