Swing trading focuses on capturing short- to medium-term price movements in stocks. Successful traders use trendlines, Fibonacci retracements, and momentum indicators to predict price swings.
Unlike day trading, where positions are closed within a single trading day, swing traders hold their trades for several days or weeks, aiming to profit from broader price movements.
Technical tools such as Moving Averages and the MACD indicator help identify trends, while Fibonacci retracements assist in determining potential entry and exit points. Swing traders also analyze support and resistance levels to anticipate reversals.
By combining technical analysis with sound risk management, swing traders can improve their success rate and capitalize on market fluctuations.
