How to Trade Swing Trading? The Best Strategies

Swing Trading thumbnail

The general strategy of swing trading is to simply jump into powerful trend action after your correction period or the consolidation is completely over. This is the correct way to perform and perform the swing exchange.

Powerful trend such as swing trading usually makes a quick move after finishing all their consolidations and corrections that one can get from.

The form of the procedure can easily be repeated over and over again literally. Furthermore, the swing trader can also play on the shorter side by shortening the trade that falls at all support positions.

In short, the goal of the swing trader is to make money by capitalizing on the mid-term movements of a certain asset, and the total useful life also at a similar point of time, controlling the entire risk using correct and perfect money management tools and techniques.

How to Trade Swing Trading?

Swing trading is a modality in which traders seek to take advantage of trends in the market but with more flexible and open time ranges than those who do scalping or day trading. Swing trading accepts broader ranges that exceed one day but do not exceed a few weeks. It is a less anxious way and requires more extensive temporal analysis.

When operating in swing trading, the investor does not look for only a few pips in each operation and then close it, but works with a trend that is sustained, even if there are movements against it in the middle, so few operations are opened in a day, and sometimes none are opened. That is, it seeks to take advantage of a running trend, and not just a few points so that the gains obtained, and also the losses, are greater than in Scalping or Day Trading.

Now, how to trade swing trading? Let’s see some strategies used by traders who use this medium-term modality:

  • Swing trading can be medium or long term, depending on the patience of the trader and his confidence in the analysis he has done.
  • Swing trading involves leaving positions open for more than one day without having to spend all day monitoring the movements. A swing trader knows that within this period the market will have ups and downs, but bets on a result in which the asset maintains a sustained trend.
  • Whoever operates in swing trading should use hourly or daily charts since their analysis range must be wider.
  • Trading under this modality implies having patience and knowing how to control yourself in the face of opposite movements, so if you are one of those who are tempted to close your position at the end of the day because you have already gained a few dozen pips or because you lost them, you should trade in a shorter temporality. Swing trading requires a broader vision.
  • Swing traders not only use technical analysis but also fundamental analysis as they evaluate both the economic, commercial, political, and social aspects of the countries involved in the assets they operate. In this sense, they are similar to Position traders, although the latter have longer periods.
  • The more volatile the market for the asset being traded, the more opportunities there will be to open swing trading operations.
  • You can swing trading with daily or weekly trends, so it is less active and dynamic.
  • Swing trading involves buying in support zones and selling in resistance zones.
  • The strategy of rising minimums in upward trends and descending maximums in downward trends is widely applied in this type of trading.

By learning how to operate in Swing Trading you will be able to perform fewer operations and you will not have to be glued to the monitor pending the movements of the assets with which you keep open operations. It requires a more complex analysis depending on the time range each trader prefers to forex trading.


For practical purposes, saving the differences mentioned in the previous paragraph and concerning technical aspects, swing trading and intraday trading are quite similar. We will notice the big difference in psych trading. While the emotional management trading intraday can be “unsettling” with all that that implies, in swing trading things are perceived more slowly. It is because of this important detail that we will have much more time to carry out any aspect of the operation: Enter the market, make partial or total closings, raise stop losses to break even, decide what to do with open operations, etc.

Due to the aforementioned, our stress and anxiety levels will be much lower, which means living with a better quality of life and also fewer errors when operating.

We will stay much further away from the fearsome and hated “come-stops” or HFT (high-frequency trading), which implies that statistically, our hit rate will improve.

Interesting Related Article: “Reasons to Start Trading in 2021