Swing trading is a popular short-to-medium-term trading strategy that aims to capture "swings" in price action within a larger trend. Unlike day trading, which involves closing positions within a single day, swing traders typically hold positions for several days or weeks, allowing them to benefit from larger price movements. The core idea is to identify the beginning of a new price swing and enter a trade, then exit once the momentum of that swing starts to fade, before a reversal occurs. Swing trading heavily relies on technical analysis. Traders use indicators like moving averages, RSI, MACD, and Bollinger Bands to identify potential entry and exit points, as well as support and resistance levels. Common strategies involve trading breakouts from consolidation patterns, reversals at key support/resistance levels, or riding established trends. Risk management is paramount, with strict stop-loss orders placed to limit potential losses. While swing trading offers a balance between the high frequency of day trading and the long-term commitment of investing, it requires disciplined execution, continuous monitoring, and a solid understanding of technical market dynamics.