Swing trading is when you hold a position for several days or weeks to catch one large price swing ("swing").
Imagine a bicycle with shock absorbers: the market sways, and you ride comfortably on the wave, not trying to catch every little bump.
How it works:
1. Identify the trend (EMA 50 and 200).
2. Wait for a pullback to support.
3. Enter in the direction of the trend.
4. Set stops and targets.
5. Hold the position for several days.
Main indicators:
• EMA 20/50/200
• RSI (14)
• MACD
• Bollinger Bands
• ATR (for stop)
Pros:
• No need to sit at the screen all day
• Catch large movements
• Lower commissions
Cons:
• Risks of gaps and news
• Patience is needed
Swing trading is perfect for those who work or study. The main thing is to trade in the direction of the trend and risk a maximum of 1–2% per trade.
Have you tried swing trading or do you prefer day trading/holding? Write in the comments 👇
$NOT #Prinw