Course Content
A Beginner’s Guide to Swing Trading Cryptocurrency
Swing trading is a commonly used trading strategy that can be ideal for beginner traders. It's a relatively convenient way to express opinions about the market due to the manageable time horizons involved. Swing traders are active in most financial markets, such as forex, stocks, and cryptocurrency. But is swing trading a suitable strategy for you? Should you start day trading or swing trading? In this article, we'll explain what you need to know about swing trading cryptocurrency and help you decide whether it's the right choice for you.
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A Beginner’s Guide to Swing Trading Cryptocurrency
About Lesson

As mentioned, swing traders aim to capture price swings that happen from a few days to several weeks. As such, swing traders will hold positions for more time than day traders, but less than buy and hold investors.

Swing traders will typically use technical analysis to generate trade ideas, though not necessarily to the same extent as day traders would do. As fundamental events can play out over weeks, swing traders may also use fundamental analysis in their trading framework. 

Even so, price action, candlestick chart patterns, support and resistance levels, and technical indicators are very commonly used to identify trade setups. Some of the most common indicators used by swing traders are moving averages, the Relative Strength Index (RSI), Bollinger Bands, and the Fibonacci retracement tool.

Swing traders will typically look at medium to high time frame charts. Why? A strong uptrend or downtrend has to be confirmed on a higher time frame. But, they may also look at intraday time frames, such as the 1-hour, 4-hour, 12-hour chart, to look for specific entry and exit points. These triggers can be a breakout or a pullback on a lower time frame, for example. 

However, the most important time frame for swing trading is likely the daily chart. Even so, trading and investment strategies can differ substantially between different traders. Note that what we’ve discussed here aren’t strict rules, but just common examples.