Swing Trading

Category: finance

A strategy where traders hold positions for days or weeks to capture price "swings."

Swing trading is the "middle ground" between day trading and long-term investing. It looks for momentum or technical trends. If a stock is trending up, the swing trader rides the wave until the momentum shifts.

Common Examples

• Swing trading allowed the firm to profit from the short-term price momentum driven by the company’s recent earnings surprise.
• We identify swing trading opportunities by looking for technical support and resistance levels over a three-to-five day horizon.