Swing Trading Strategies – Profit Making Opportunities
Publish Date: January 24th, 2019
The traders in the stock market are always looking for opportunities to make profits. There are many trading strategies that one may follow according to his/her trading style. One such popular trading style is swing trading. By using the various swing trading strategies, the traders can make good profits. In this article, you will learn about the different types of swing trading strategies.
Let us first understand the meaning of swing trading.
What is Swing Trading?
Swing trading is a trading methodology that aims at capturing a swing or move in the stock price. Swing trading aims at taking advantage of the short term price trends. Although, the gains in swing trading are smaller but compounding can result in excellent gains over a period.
Let us now learn about the best swing trading strategy.
Swing Trading Strategies
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Stuck in a Box
This swing trading indicator identifies the range of the market. You have to wait for the price to break below the support level. If the price breaks below the support level, then wait for the price to close above a support level or price rejection. If the price rejection is strong then you can go long in the next candle open. You can set the stop loss at 1 average true range below the candle low and book profits before the resistance levels.
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Catch The Wave
Catch the wave is another swing trading indicator. In this strategy, you need to identify a trend closer to its 50MA. When the market nears the moving average, wait for bullish price rejection. You can go long in the next candle when there is a bullish price rejection. You can set the stop loss at 1 average true range below the low and book the profits before swing high.
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Fade The Move
Fade the move is again the best swing trading strategy. In this strategy, you need to identify a strong momentum that is closer to the resistance and takes out the previous high. The candle will form a strong bearish close when there is a strong price rejection. Now go short on the next candle and set the stop loss at 1 average true range above the high and book your profits before the closest swing low.
From the above swing trading strategies we can say that:
- Stuck in a Box swing trading strategy is appropriate when the market is in a range.
- Catch the Wave strategy is suitable in the trending markets.
- Fade the Move is a swing trading indicator for a counter-trend.
The above mentioned are some of the popular swing trading strategies. Many analysts and fundamentalists follow these strategies to make profits. There are many benefits of using these swing trading indicators. Let us learn about some of the advantages of swing trading strategies.
- There is no need for continuous monitoring of the prices on your monitor. This is because the swing trade duration period is from few days to few weeks.
- With a swing trading strategy in place, you can easily focus on your full-time job.
- Swing trading is less stressful than day trading.
If you are a beginner in the market or want to trade on the basis of swing trading tips, you can contact Kotak Securities. Our in house experts carry out thorough analysis before giving tips on the basis of swing trading. Open a demat account with us and avail our premium services.
