Trading
Swing Trading
Holding positions for days to weeks to capture larger moves.
Full Definition
Swing trading aims to capture 'swings' in price over several days to weeks. Swing traders use 4-hour to daily charts and focus on technical patterns and trend movements. This style requires less screen time than day trading and can be combined with other activities. Traders must account for overnight gaps and swap costs.
Example
A swing trader identifies EUR/USD forming a double bottom on the daily chart. They enter long with a 100 pip stop loss targeting 300 pips. The trade takes 8 days to reach the target.
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