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Swing Trading Strategy

Swing trading is a style of trading used in the forex market or with high-cap stocks that aims to make gains by holding positions for a period ranging from one day to one week on average.  Other than day trading, it is the most short term style of trading. 

Swing trading is a broad term that encompasses several different distinct trading styles, among them range trading, trend trading, and counter-trend trading.  See our articles on those topics for more information.  It is generally used more often by technical traders.  Bolinger bands are perhaps the most useful tool to use when practicing swing trading, and most forex companies offer

The short term nature of swing trading makes it particularly effective for forex traders.  In general, the lack of commission fees or significant spreads at most brokerages makes most strategies that are based on short term trades aptly suited to the forex market.