Swing Trading

Swing trading is a market strategy in which traders hold stocks, commodities, currencies, or other assets for a few days to several weeks with the goal of profiting from short- to medium-term price fluctuations. This approach relies primarily on technical analysis—such as chart patterns and momentum indicators—to determine optimal entry and exit points, while fundamental factors may occasionally be considered. Unlike day trading, where all positions are closed within the same trading session, or trend trading, which involves holding assets for months or years, swing trading focuses on capturing price swings within an existing trend through precise timing and disciplined risk management.

Example: A trader may buy a stock showing bullish momentum and hold it for a week until it reaches a targeted resistance level, profiting from the upward swing before selling.