A trading style

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Swing trading is a commonly used term to describe any method of trading whose trade duration is from two days to five days using daily charts.

Swingtrading gets its name from putting on trades that attempt to capture swingmoves typical of bull market from swing low(when the market corrects down after a sustained rally and then begins to go up once again) to a new swinghigh which would make the end of the new rally. OR. In the bear market where the market makes aswing high(when the market rallies up after a sustained move down and then begins to go down once again) to anew swing low which would make the end of the new leg down.

Why does swing trading work? Because you are always trading in the direction of the trend and trend is your friend in trading.You wait for a pull back before entering the trade and you enter only if the security shows a sign that its price will continue in the direction of the trend.

1   Enter positions at support and resistance

2  Can trade in trending and range bound markets.

3 Holding for a short period of time typically for few days.

Swingtrading allows you to make money when the market is bullish or bearish or sideways.

Trying to pick up the swing highs and lows is also known as counter trend trading.Swing trading can be great way to profit from market upswings and downswings.But it is not easy.Mastering the swing trading techniques take good time and effort.

The goal of swing trader is to capture relatively short quick moves in the market based on technical analysis. This usually means that the swing trader is trying to trade with the short term trend for another leg up after the correction with in a bull move or another leg down after a rally in the bear move.

CONCEPT.  Prices rise and fall with rising prices being stimulated by greed and falling prices by awakening of fear.This emotional war between greed and fear generates a swinging price movement that provides a perfect opportunity for swing trading. Swing trades capitalise on the emotions of others while they carefully control  their own emotions and systematically enter and exit trades.Swing traders recognise the levels of support and resistance.They understand the concepts of momentum and volatility and can identify a trading range or channel.Sometimes price seeks an equilibrium state and swing traders seek to exploit direct price thrusts as they enter positions at support and resistance.By examining chart pattern characteristics they make money both in trending and rangebound markets.