What is Swing Trading?
Swing trading
Forex Trading Glossary
Quick Answer: Swing trading captures price swings over days or weeks using 4-hour and daily charts. It balances substantial profit potential with manageable time commitment - ideal for working professionals.
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.
Perfect for Professionals
Swing trading suits traders with day jobs because it requires less screen time than day trading or scalping.
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.
Related Terms
Learn More About Forex Trading
Now that you understand swing trading, explore our comprehensive guides: