Swing trading strategies capture significant, single moves in the market. These moves may last for anything from a day to several weeks.
Forex chart patterns offer insight into swing traders’ sentiment of a market (are they long or short?) and also potential entry and exit points for swing trades.
Momentum trading is at the core of a swing trading strategy – momentum is the catalyst for price change. Without momentum, no swing trade will be profitable.
The Donchian Channel is a breakout indicator that only requires one input, price itself. Swing traders can use breakouts of support or resistance to capture short to medium-term profits.
Correct trading risk management is the single most important determinant of a swing trader’s long-term profitability. And the correct use of stop loss order and stop limit order is an essential part of the process.
The Average True Range is a technical indicator which measures risk and volatility by revealing the range of the asset for the period.