Swing trading is a trading strategy that aims to capture short- to medium-term gains in a stock or other financial instrument. Traders typically hold positions for several days to weeks, taking advantage of price swings or trends. This approach allows traders to benefit from market volatility without the need for constant monitoring, making it suitable for those who cannot dedicate all their time to trading.
Swing traders often use technical analysis, which involves studying price charts and patterns, to identify potential entry and exit points. They may also consider fundamental factors, such as earnings reports or economic indicators, to inform their decisions. Popular tools for swing trading include moving averages, support and resistance levels, and candlestick patterns.