What indicators or tools do swing traders use?
Swing traders will use tools such as moving averages, momentum indicators, price range tools, and market sentiment indicators overlaid on daily or weekly candlestick charts. Swing traders also look for technical patterns such as a head and shoulders pattern or a cup and handle pattern.
What types of coins are best for swing trading?
While swing traders can have success in any number of coins, the best candidates tend to be BTC ETH, which are among the most actively traded coins on major exchanges. In active markets, both of them typically fluctuate between broadly defined highs and lows, with swing traders taking swings in one direction for a few days or weeks and then switching to the other side of the trade when BTC reverses direction. Swing trading is also viable in actively traded commodity and forex markets.
Bottom Line
Swing trading refers to a trading style that attempts to take advantage of short- to medium-term price movements in BTC using favorable risk/reward metrics. Swing traders rely primarily on technical analysis to determine suitable entry and exit points, but they may also use fundamental analysis as an additional filter.
ETH is a suitable swing trading candidate because they typically move within defined, predictable ranges, frequently offering long and short trading opportunities.
Swing trading offers advantages such as maximizing short-term profit potential, minimal time commitment, and flexibility in capital management. The main disadvantages include being subject to overnight and weekend market risk, and missing out on long-term trending price movements.
