Swing trading is a short-term investment strategy that attempts to capture gains from trends in a stock, commodity or currency. Swing traders typically hold positions for a few days to several weeks as they aim to profit from the intraday price movements of an asset.
In swing trading strategies, traders use technical analysis tools such as moving averages and oscillators like RSI (Relative Strength Index) to identify entry and exit points in the market. They look for opportunities where a stock or commodity is showing signs of strengthening or weakening trend, and then buy when it's oversold or sell when it's overbought.
Swing traders also pay attention to news events that can impact short-term price movements in the market. They may use limit orders to set their entry and exit points for a trade, and they closely monitor their positions throughout the day to make any necessary adjustments.
Overall, swing trading strategies involve taking advantage of short-term trends while minimizing risk through careful position management and technical analysis.