By TradingLeadApril 12, 20262 min read2 views

Swing Trading Fundamentals#

Swing trading captures price moves over days to weeks, making it ideal for those who can't monitor markets all day.

Why Swing Trading?#

AspectIntradaySwingLong-term
Holding PeriodHoursDays-WeeksMonths-Years
Screen TimeFull day30 min/dayMonthly review
Capital NeededHigh (margins)MediumAny amount
Stress LevelVery HighModerateLow
Skill RequiredAdvancedIntermediateBasic

Core Swing Trading Approach#

Step 1: Identify the Trend#

  • Use weekly chart for overall direction
  • Use daily chart for entry timing
  • Trade in the direction of the larger trend

Step 2: Wait for Pullback#

  • In uptrend: Wait for price to pull back to support/moving average
  • In downtrend: Wait for price to rally to resistance/moving average

Step 3: Entry Triggers#

  • Bullish engulfing at support
  • Bounce off 20/50 EMA with volume
  • Breakout from consolidation pattern
  • RSI divergence at key levels

Step 4: Risk Management#

  • Stop-loss below recent swing low (longs)
  • Stop-loss above recent swing high (shorts)
  • Risk per trade: 1-2% of capital
  • Target: Minimum 1:2 risk-reward

Best Indicators for Swing Trading#

  1. Moving Averages (20/50 EMA) - Trend direction & dynamic S/R
  2. RSI (14) - Overbought/oversold & divergences
  3. MACD - Momentum shifts
  4. Volume - Confirms breakouts and trends

Swing Trading Routine#

TimeActivity
7:00 PMScan for setups after market close
7:30 PMSet orders for next day (AMO)
9:15 AMCheck if orders triggered
3:00 PMReview positions, adjust SL
WeekendWeekly review & planning
Ctrl+Scroll to zoomยทSpace+Drag to panยทDouble-click to reset

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