Capture profitability from swings in asset prices
Swing trading is a rule-based trading strategy that aims to capture the profitability from short-term trends. A typical holding period for swing trading is two to five trading days, and rarely exceeds two weeks.
As a rule-based trading strategy, swing trading can be implemented using an algorithmic trading approach by using technical or fundamental indicators to generate trading signal and trading orders.
Swing traders use a variety of techniques to identify trading opportunities, such as: