Learn swing trading timeframes, entry/exit timing, and the best technical indicator combinations for swing trading.
What Is Swing Trading?
Swing trading is a style that holds positions for days to weeks, aiming to capture one "swing" within a trend. It falls between day trading and long-term investing, ideal for those who can't watch screens all day but want to trade actively.
Advantages of Swing Trading
- No need to monitor screens all day
- Can profit from larger price movements
- Moderate trading frequency keeps fees low
- Enough time for analysis and decision-making
Suitable Timeframes
- Main trend: Daily, weekly charts
- Entry timing: 4-hour, 1-hour charts
- Multi-timeframe analysis: Confirm trend consistency from large to small
Entry Strategies
Pullback Buy
In an uptrend, wait for price to pull back to support (MAs, Fibonacci levels) before entering.
Breakout Trading
Enter after price breaks above key resistance or consolidation range, confirmed by volume.
Pattern Trading
Enter after specific candlestick patterns (bullish engulfing, morning star, etc.) appear.
Exit Strategies
- Reaching target levels (resistance, Fibonacci extensions)
- Trailing stop triggered
- Trend indicators (MACD, MAs) signal reversal
- Predetermined holding period expires
Recommended Indicators
- MACD: Confirm trend direction and momentum
- RSI: Identify overbought/oversold conditions
- MA combinations: Determine trend and support/resistance
- Bollinger Bands: Measure volatility
Risk Management
- Limit each trade's risk to 1-2% of total capital
- Avoid holding positions before major news events
- Use trailing stops to protect profits