🌊 Swing Trading — 3-21 Day Holding Strategy

Swing trading sits between day trading and position trading. Traders catch 3-21 day waves, targeting 5-20% per trade. Suitable for full-time workers (no constant monitoring required).

Definition

Swing trader catches "swings" — mid-term waves. Holds overnight (unlike day trader) but not weeks (unlike position trader).

Best Indicators

RSI (identify oversold/overbought), MACD (momentum confirmation), Bollinger Bands (volatility), ADX (trend strength). Combine at least 3 indicators to reduce false signals.

Entry Setup

Pull-back in uptrend: price retraces to MA20/50 + RSI < 50 + bullish reversal candle = entry. Breakout: price breaks resistance + volume > 1.5x avg = entry.

Stop Loss

Place SL below nearest swing low or 1.5×ATR. Max risk 2% capital per trade.

Take Profit

TP1 at R:R 1:1 (sell 50%), TP2 at R:R 1:2 (sell remainder). Or trailing stop along MA20.

Pros/Cons

PRO: No realtime monitoring. Stable returns if disciplined. CON: Overnight gap risk. Cumulative transaction costs.

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🔗 Related Strategies

⚡ Day Trading — Intraday Strategy Explained 🚀 Momentum Trading — Buy High, Sell Higher ⛰️ Position Trading — Hold Months to Years

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