Swing trading is a form of active trading

Swing trading is a versatile approach that can be used by the trader alone or in conjunction with other analytical tools. In order to increase the accuracy of the trading signals, you can also use additional indicators to confirm the signal of the main indicator. Psychologically, this is a more comfortable style for those who don't want to work with short stops and a big shoulder. 

Many traders underestimate swing day trading strategies, although it has certain advantages over short-term intraday trading and long-term investing:

  • Swing trading does not require speedy decisions as in momentum trading. 
  • Fewer open and closed positions in one trading session reduces brokerage fees. However, there are risks associated with day trading.
  • Medium-term trading eliminates the possibility of freezing of funds during the drawdown, which is typical to long-term trades. A deal that did not meet expectations can be closed at any time to open a position in another, more promising instrument.  

Swing trading strategies use the following tenets:

  • Prices can move in an upward or downward trend or in a sideways range.
  • Each trend represents an active market reaction.
  • Sideways (range) reflects a negative market reaction when price moves between some maximum and minimum values and cannot form a directional movement.
  • Sideways price movements change either by trend continuation or by a reversal, forming repetitive patterns.
  • A trend break occurs at certain points.
  • Oscillators are used to identify a sideways movement.
  • Impulse indicators are used to identify trends.

By identifying the current state of the market with swing trading strategies, you can join the general movement in the trend during pullbacks and corrections, if this opportunity was missed when the trend started; or, if a trader already has an open position, add volume.

Choose your strategy
Choose your strategy

The  time factor swing trading is the best strategy

Swing traders investigate important levels and major trends on three different timeframes, following the 3D rule. For example, one might start the analysis with a weekly chart, then switch to a daily chart, and take a five-minute interval to determine the exact trade entry. By analysing several timeframes you will be able to identify the main long and short term trends, and determine their influence on the price movement.

The trader should watch out for areas where important levels, patterns and lines cross or overlap and open positions.

Methods for opening new positions in an equity swing trading strategy:

  1. "Cross Confirmation" method with a breakdown into rectangles (trend continuation pattern), each of which should be higher than the previous one in a bull market. On a bearish trend, of course, the opposite.

  2. A breakout of the trend channel should be confirmed by the reversal of the Bollinger Bands.

  3. The presence of numerous trend continuation figures along its course - a flag, a wedge, a pennant and / or a symmetrical and ascending triangle, etc., the breakdown of the lines of which also confirms the strength of the trend.

Swing trading strategies use several methods of technical analysis:

  • Technical levels of resistance and support;
  • Elliott Wave Analysis;
  • All reversal and continuation patterns without exception;
  • Market volumes (for Forex VSA).

Swing trading strategies do not imply making trades during a flat market or when the market is experiencing high volatility. A trader can get the highest profit when there are very powerful and long trends. This greatly reduces the total amount of trades, as about seventy percent of the time the chart is in consolidation zones.

News
News

To determine the trend potential we recommend installing the Aroon indicator, which shows not only the strength but also the direction of the main trend on the market.

Operating principles for swing trading strategies in equities:

  • It is necessary to work co swings - the wave fluctuations of the price movement chart. To identify market swings, we recommend installing any trend reversal indicator without re-triggering.
  • To open a trade, you must accurately determine the price swing, and also find the starting point of a new wave, to open at the most favourable conditions.
  • To close the order, you need to wait for the maximum return of the market situation, as well as signs that the opening swing is over.
  • Swing trading can be done within a narrow price range as well as within a specific chart movement - a trader should study several trading techniques and use them in different situations.

Swing trading strategies based on different instruments of technical analysis make it possible to conduct profitable trading. They are sufficiently reliable techniques, which can be used as guidelines! We wish you a successful investment! 

A swing trading strategies stocks based on MAs

Moving averages became a part of traders arsenal of technical analysis methods long time ago. They are easy to use in practice, the signals they provide are simple and unambiguous. 

By correctly using moving averages in combination with other tools, you can achieve very good results. Try it, and it will work out for you!

An example of a trading strategy based on different-order (different-period) moving averages in combination with reversal candlestick patterns. Here are the MAs we will need:

  1. A fast MA of order 10;

  2. A slow MA with the order of 30;

  3. A very slow MA with the order 200.

The order of moving МА can be changed, we can experiment with different periods and try to select the best ones for every separate symbol. The slow MA is used to determine the direction of the prevailing trend on the chart. If it is below the chart, it is an uptrend; if it is above the chart, it is a downtrend. Two MAs with periods of 10 and 30 are used as markers to identify potential entry points. Exactly at those moments, when the price is between them, we will expect the formation of reversal patterns in order to get a confirmation signal to open a position.

Register, trade and make a profit!
Register, trade and make a profit!

This is a good strategy to use in the stock market. It is better to trade on it without using leverage, it will allow you to get a stable profit with rather low risk. I wish you success and stable profits!

Equity swing trading strategies stocks channel strategies

Many swing traders focus on channel breaks after a period of consolidation. To take advantage of this strategy in the market, you must first look for assets trading in a channel. A price channel, is defined by drawing trend lines (or support/resistance lines for a flat channel) between two or more highs and lows of a swinging price movement. On a bearish chart this means that price is oscillating between lower highs and lower lows, creating a sloping channel (i.e., a downward trend). On a bullish chart, it is the other way round.

Once the channel is identified, the swing trading strategy is implemented in the following, rather simple way:

  • In a flat channel, long positions are opened when the price touches the support line and are closed at the resistance line, while short positions are opened at the resistance line and are closed at the support line;
  • In an uptrend channel, long positions are opened when price touches the trend line and are closed at the resistance line;
  • In a downward channel, you should only trade downwards, opening short positions from the trend line to the support line.

How do I start swing trading strategies stocks?

To enter the market, get quotes and start trading, you need to choose a broker. Then all you have to do is register. You will have to enter all your basic personal information, or just your name and email or phone number. A link will be sent to you to confirm and continue the process. Before you start trading swing trading strategies, you will have to confirm your consent to the data processing and storage.

Opening an account for trading on the exchange is a simple procedure that can be done remotely, using the website of the brokerage company. So go ahead and have a successful trading!

Registering on the investing platform
Registering on the investing platform

When the verification is successfully completed, you need to choose the account type in your personal cabinet, on which leverage, minimum deposit, spreads and other will depend. You can deposit your account with money using almost any payment system. This is usually done as follows: you go to the broker's website where you intend to trade. There, you click on the "Deposit" or "Deposit" button, and one of the payment systems is offered to you.  Everyone will be able to find the way that suits them best.

How to open account
How to open account

To find out how swing day trading strategies work, open a demo account. This works exactly like a real account, except you trade with virtual money. You do not need to sign up again to switch from a demo account to a live account.

You can start earning real money on your trades right now. If you are still not sure which features you need to trade, you can always read about their features online and watch instructional videos. We wish you success and stable profits!

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