Category
Description
Swing trading is a trading strategy that involves holding positions for several days to a few weeks to capture short- to medium-term price movements in financial markets. Traders using this approach aim to profit from “swings” or momentum shifts in price, often identifying opportunities through technical analysis tools like moving averages, RSI, MACD, and candlestick patterns. Unlike day trading, swing trading doesn’t require constant monitoring of charts, making it suitable for part-time traders. It can be applied across various markets including stocks, forex, and commodities, and allows traders to take advantage of both upward and downward trends while managing risk through stop-loss and take-profit levels.