Swing Trading
If scalping could be considered speed‑dating, then swing trading is more like a casual relationship… Not quite a lifelong marriage, but definitely longer than a quick fling. We’re talking a few days, maybe even a couple of weeks, to see where things go. For traders who can’t (or don’t want to) stare at charts 24/7 but still crave regular action—or believe in short-term trends—swing trading hits a sweet spot.
What Swing Trading Really Means
At its core, swing trading is about catching a piece of the trend, not squeezing every last pip out of a one‑minute chart. You wait for a momentum shift. Say, bitcoin breaks out of stubborn resistance, and ride the wave. Once things slow down, you get out, take profit, and move on.
Timeframes? Think 4-hour to daily charts for identifying setups, with the occasional peek at the hourly for cleaner entries. Positions typically stay open overnight, sometimes over weekends, and occasionally for weeks, depending on the setup.
How Swing Traders Spot Setups
Swing traders blend technicals with a bit of narrative. Maybe there’s a protocol upgrade, a macro event, or a surprise whale move. These catalysts set the stage for trend shifts, like:
Trend continuation: Price prints higher highs and higher lows. Swing traders buy the dip into moving average clusters and sell near resistance.
Range break and retest: Price coils tightly, breaks out on volume, then drifts back to retest the breakout zone. Enter there, ride it to the next liquidity pocket.
Moving average momentum switches: A fast EMA crosses over a slower one, classic signal. Get in early and bail once indicators flatten.
Volatility squeezes: Bollinger Bands pinch tight, storing energy. A strong breakout candle can kick off a multi-day sprint. Check out our Bollinger Bands article for more info.
Getting a Good Night’s Sleep
The freedom of leaving trades open overnight is also swing trading’s biggest risk. A 3 a.m. news bomb can blow through your levels. That’s why good swing traders never trade blind. They set up with:
Defined invalidation: Know exactly where your thesis fails.
Position sizing: Never risk more than you’re willing to lose.
Reward-to-risk: Learn more about this in our Risk/Reward Ratio entry.
And yeah—patience. Most swings crawl sideways for days before moving.
Pros and Cons
Pros:
Less screen time than day trading
Fewer trades = lower fees
Time to plan, journal, and review setups
Works for part-time traders
Cons:
Overnight or weekend gaps = unexpected risk
Easy to lose patience
Emotions (like FOMO or panic) can wreck a good setup
Crypto volatility means even solid trends can reverse fast
Parting Thoughts
Swing trading isn’t about top button mashing. It’s about catching the juicy middle of a move with a solid game plan. Know your levels, honor your stop, watch the catalysts.
About Kuma
Kuma is a double-down bet on what works for decentralized trading: speed, security, and transparency. From the team behind the No.1 DEX from 2017-2019, and powered by Berachain’s Proof-of-Liquidity, Kuma delivers one-click onboarding, seamless mobile trading via Kuma Connect, and gas-free settlement. Traders of all sizes have an edge thanks to millisecond execution and complete control of their funds.
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