Swing Trading
Multi-day holds capturing one 'swing' of the trend — the style most compatible with having a day job.
Mean Reversion & SwingAdvanced 7 min read· Lesson 8 of 9 in Trading Strategies
Overview
Swing trading operationalizes everything prior: trend context (daily chart), entry at pullback support or breakout, exit into the next resistance, 2–10 day holds. End-of-day decisions only — no screen-watching, less noise, cleaner psychology.
Market conditions
Any trending or widely-ranging market with 2R+ of room between logical entry and target.
Entry rules
Confluence entries only: trend + level + trigger candle (e.g. uptrend + 50MA touch + bullish engulfing). The confluence scanner exists precisely for this stacking.
Exit rules
At the pre-identified opposing level, or partial there + trail. WRITE the exit before entering.
Stop loss
Below the setup's invalidation (swing low / level), sized so the dollar risk is fixed.
Position sizing
1R risk with minimum 2R targets: at 2:1, a 40% win rate profits. That arithmetic — not prediction — is the business model.
Risk management
One decision window per day (after the close). Journal every trade against the written plan; the Trading page's history is your audit trail.
Evidence & backtesting
Swing trading isn't one edge but a discipline framework over the edges above — its 'backtest' is the sum of its setups' backtests, which the presets cover individually. Every strategy here maps to this platform's Backtest panel — the matching Strategy Preset fills entry/exit/stops in one click, and every result is benchmarked against buy-and-hold, which most simple strategies LOSE to on strong trenders. Seeing that honestly is the lesson.