Swing Trading

ForexDictionary explains Swing Trading

Swing traders are a diverse lot of traders that includes news traders, reversal traders, trend traders and momentum traders. These traders go into a trade with an expectation of what will happen around an event like an economic release or a particular technical signal. They take up a position and hold it until their specific exit criteria is met, meaning that a trade could last minutes, hours or days. For example, a swing trader may sit out on the run up in a currency pair before an economic release and then jump in on the reversal when/if the release is more negative than the market expects. The trader would exit this trade based on his particular plan, but a typical exit point might be when the pair’s price action falls below the average resistance level of the previous week.

Swing trading is often viewed as being simpler than day trading or fundamental trading because there tends to be fewer trades and less important data to watch.