Swing Trading – Who are swing traders?

Swing Trading is a style being used by the stock, currency… traders that hold their positions open more than one day, and the positions are usually opened up to 4 days. Swing traders mostly use technical analysis combined with the general fundamental analysis.

Usually before making a decision at the beginning of the week they sat down a couple of hours to analyze the charts using standard tools of technical analysis (support and resistance, trendlines, Fibonacci etc.), and read important news that may affect the price of the next few next few trades.
After that they open positions if they see a good chance to open or set limit and stop orders so that the price comes in the planned area. Their goal of profit taking is 100-500 pips.

I use this technique too, but not so frequently because I’m more oriented to day trading and scalping. Swing traders don’t spend a lot of time by the charts compared to day traders, they just check on price movement one or two times a day, and that’s it. If you’re a day trader and you use Swing style also, then you’ll be by the charts whole day, just like me.

You can also read about day trading and scalping forex trading style.

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