With swing trading, you hold a trading position from two to seven days. Here are some of the swing trading strategies that are worth considering.
Channel trading strategy:
The price action is contained within two parallel lines. You can make use of ascending and descending channels. For example, you can take long positions when the price touches the lower support level and exit your trade when the price touches the upper resistance level.
Counter trend strategy:
It is also called fading. You take short positions when you sense that it is the end of an uptrend. You take long positions at the end of a downtrend.
Here are some of the technical indicators for swing trading.
Moving averages:
Moving averages help you identify an existing trend clearly. For a single moving average, the price is below the moving average for a downtrend. For an uptrend, the price is above the moving average.
Moving Average Convergence Divergence:
The MACD indicator uses two EMAs to indicate trend correlations. Above the zero line is considered a buy signal. Below the zero line is a sell signal.
Relative Strength index:
ThE RSI indicator measures overbought and oversold conditions. It is one of the best indicators for swing trading. It uses momentum to compare gains and losses of the financial asset.