Swing trading is a tactic used by traders to capitalize on price changes over a short- to medium-term time horizon. Catching market “swings” over the course of days, weeks, or months is the goal. Generally speaking, investors watch out for two swings:
Swing highs: When the market reaches its peak before declining, a short trade is possible.
Swing lows are times when the market dips and then bounces back, offering a chance for a long trade.
Swing trading techniques are effective in trending markets, such as cryptocurrency, equities, and foreign exchange. The greatest cryptocurrencies for swing trading are Bitcoin, Ethereum, and Tether, especially if you’re a beginner. This is due to the fact that they have the highest market capitalization and are some of the most volatile and actively traded coins available.
Successful cryptocurrency swing traders frequently watch short- to medium-term charts using technical analysis to spot daily and weekly patterns. Due to the fact that economic events can take days or weeks to play out, using basic analysis is also beneficial.