Back to Trading Strategies
IntermediateDaily - Weekly
Swing Trading
Hold positions for days to weeks, capturing medium-term market swings
Expected Win Rate:50-60%
Swing trading captures price swings that occur over days to weeks. It offers a balance between the frequent action of day trading and the patience required for long-term investing.
The Swing Trading Philosophy
Swing traders aim to capture one leg of a larger market move, entering at swing lows and exiting at swing highs (or vice versa).
- Hold positions 2-10 days typically
- Target 100-300+ pips per trade
- Trade with the overall trend
- Use daily and 4-hour charts primarily
Identifying Swing Points
Look for these conditions to find swing opportunities:
- Pullbacks within a trend
- Oversold/overbought conditions
- Support and resistance zones
- Chart pattern completions
Entry Timing
The key is entering at the right moment:
- Wait for pullback to complete
- Look for reversal candlestick patterns
- Confirm with RSI or Stochastic
- Enter when momentum shifts in trend direction
Position Management
Managing trades over multiple days:
- Use wider stops (50-100+ pips)
- Consider overnight gaps
- Scale out at key levels
- Trail stops as position moves in profit
Advantages
- +Less screen time than day trading
- +Larger profit potential per trade
- +Works well for part-time traders
- +Less affected by spread and commission
Disadvantages
- -Exposed to overnight gaps
- -Requires patience to hold positions
- -Fewer trading opportunities
- -Swap fees on positions held overnight
Best Suited For
- Part-time traders with day jobs
- Those who prefer less frequent trading
- Traders who can handle overnight risk