Mastering Swing Trading Strategies
How to profit from medium-term price movements
By Ravi Mehra | July 10, 2024
Swing trading is a popular trading style that focuses on capturing short- to medium-term gains in a stock (or any financial instrument)
over a period of a few days to several weeks. It’s ideal for people who can’t monitor the markets throughout the day, but can check in
once or twice daily.
For example, suppose a stock like Apple (AAPL) breaks above its 50-day moving average with increasing volume. A swing trader might
take a long position expecting the price to continue rising for the next 5 to 10 days. They’ll often use technical indicators such as
MACD crossovers or RSI levels to time entries and exits.
Edge cases include periods of high volatility, where sudden news or earnings reports can cause rapid reversals. Swing traders often
set stop-losses and use position sizing to manage risk.
To get started, use a trading platform that supports charting tools. Study key patterns like bull flags, double bottoms, and resistance breakouts.
Practice with paper trading before committing real capital. Tools like TradingView or broker platforms such as Zerodha and Angel One
offer great starting points.