What is Swing Trading?

What is Swing Trading?

Swing trading aims to capture multi-day price moves using four-hour and daily charts. It balances meaningful profit potential with a manageable time commitment.

Swing Trading Traits

• Holding period: Trades typically last 2 to 10 days.
• Focus on structure: Entries around breakouts, pullbacks, or mean reversion zones.
• Moderate frequency: A handful of trades per week.
• Blend of analysis: Combine technical levels with macro context.

Executing Swing Trades

• Use higher timeframes: Enter on 4H/daily charts and monitor twice per day.
• Set alerts: Let price reach key levels before reassessing.
• Manage overnight risk: Adjust size before major news events.
• Trail stops: Capture larger moves while protecting open profits.

Practical Playbook

• Define context on higher timeframes, then execute on intraday charts.
• Wait for confirmation (acceptance, momentum, or confluence) before entry.
• Size positions conservatively and place stops at clear invalidation levels.
• Adapt to session dynamics; conditions shift between Asia, London, and New York.

Common Pitfalls

• Forcing trades without alignment across timeframe, structure, and catalyst.
• Ignoring spreads/slippage during news or thin liquidity.
• Moving stops or adding to losers instead of honoring the plan.

Illustrative Example

Build a simple playbook: identify bias, mark key zones/levels, define triggers and invalidation, and pre‑set targets for 2–3R. Journal results by session and setup to refine rules. Over time, consistency—not prediction—drives outcomes.

Practical Playbook

• Define context on higher timeframes, then execute on intraday charts.
• Wait for confirmation (acceptance, momentum, or confluence) before entry.
• Size positions conservatively and place stops at clear invalidation levels.
• Adapt to session dynamics; conditions shift between Asia, London, and New York.

Common Pitfalls

• Forcing trades without alignment across timeframe, structure, and catalyst.
• Ignoring spreads/slippage during news or thin liquidity.
• Moving stops or adding to losers instead of honoring the plan.

Illustrative Example

Build a simple playbook: identify bias, mark key zones/levels, define triggers and invalidation, and pre‑set targets for 2–3R. Journal results by session and setup to refine rules. Over time, consistency—not prediction—drives outcomes.