Definition

A Swing Trading Strategy is a medium-term approach designed to capture price movements over several days or weeks. It typically relies on trend analysis, technical indicators, and momentum signals.

Swing trading aims to identify broader price swings rather than short-term fluctuations.

Example in Context

A trader enters a position after identifying a breakout pattern and holds the trade for several days as the trend develops.

FAQs

Is swing trading short-term or long-term?

It is generally considered medium-term.

Does swing trading require constant monitoring?

Less than scalping, but periodic review is often necessary.

Can swing trading be automated?

Yes. Many automated systems can be configured for medium-term strategies.

Related Terms