What is swing trading?

What is swing trading?

Swing trading is active trading that is not frequent enough to be categorized as day-trading but generally follows short-term trends.

Swing trading can describe long or short positions traded on upswings and downswings of a security or index, and these positions are generally held from one day to two weeks.

Generally, these are going to be momentum investments which are entered into after there seems to be confirmation of a trend, and the positions are closed out when there seems to be confirmation that the trend has ended.

Swing trading relies on technical indicators, watching the price action, and since the trades are intended to follow short-term trends, almost no thought is given to fundamental analysis.

It is popular for swing traders to use daily candlestick charts with a T-line (8 day EMA) on them.

What is Intraday Trading?
What is a Day Trader?