Swing Trading Strategies – The Ultimate Guide

Interested in trading part time and still making decent profits? Then this swing trading strategy guide is for you.

Swing trading is a perfect option for people that don’t have all day to concentrate on trading. It’s for people that work full time/study or just want to do other things with the majority of their day. In this article I’m going to share my very best swing trading strategy.

Usually the case is that the more you work the more you make. This is true of course, although with swing trading it is possible to achieve enviable profits with just 1-2 hours of “work” per day.

I invite you to read through this simple guide on a very effective technique on how to practice swing trading on your own.

This guide rather short and written in a very easy-to-read format and is meant for people with low to medium level of experience in the markets

What is Swing Trading in the First Place?

Swing trading attempts to capture gains in a stock (or any financial instrument) within an overnight hold to several weeks.

Swing traders use technical analysis to look for stocks with short-term price momentum.

These traders may utilize fundamental or intrinsic value of stocks in addition to analysing the price trends and patterns. – Explanation taken from Investopedia.

In my own words:  Swing trading is looking for certain price patterns that are predictable and trying to profit from them.

As the graphs that are monitored are multiple day to weekly charts, the trades take time to play out meaning you don’t need to monitor the trades for the whole day.

You analyse the charts when you have time, put in orders, set automatic stop-loss and profit orders and move on to your other activities.

STEP #1

Finding Diamonds – Profitable Patterns to Search For

Now as you have your account all set up and you’re ready for action, let’s go and find some diamonds for ourselves.

What I mean by diamonds is price patterns of stocks/ currencies/ commodities that occur often and thus are predictable.

With these patterns you are able to forecast what they are likely to do in the future and profit from it more times than not.

Below you’ll find an overview of my favourite swing trading patterns ranked by my own success ratio with them:

#1 Triangle

Triangle shape is in my experience one of the best working patterns in terms of chances of success. You may find it in many forms, either ascending like the one on the picture, descending or even asymmetrical.

#2 Double Top

Double top is another great pattern that is well known among traders and yet works with a rather high success ratio. The same pattern works vice versa, if you notice one upside down, you can utilise it for going long in a stock.

Again, I’m not going to go into depth with this pattern, as someone else has already done a great job at that, which is why I advise you to check out Finvids double top section.

#3 Channel Pattern

This is one of my favourite patterns, despite it having less chance of success as the ones named above. I like the pattern, because it can be found very often in various instruments. This pattern can be a great moneymaker if utilised correctly.

There are two main ways to trade this pattern, one is within the channel and the other is to trade breakouts. Both are explained on the below video. Also again I advise to read Finvids channels section again if you want to learn a bit more about the specifics of the pattern.