Swing Trading is a style of trading in financial markets where traders aim to profit from short-term price fluctuations (swings) of an asset. Unlike scalping, where positions are held for only seconds or minutes, swing traders typically hold positions for several days or even weeks to capitalize on significant market movements.
The goal of swing trading is to buy an asset at a low point of a swing and sell it at a higher point, or vice versa—sell at a high point and buy back at a lower one. Traders using this style often rely on technical analysis to determine entry and exit points, as well as to assess the overall market trend.