Hello dear friends hope you are fine , today I am writing homework task for professor @yohan2on which is about swing trading. First we will check our understanding of the swing trading and then we will dive deep into the technical analysis aspects of swing trading.

What is Swing trading?

Swing trading refer to our trading strategy in which trade lasts for several days to several weeks. Such a type of trade is mainly based on technical analysis carried out by swing traders to spot swings in market price of assets and trade on them.

Swing traders make use of multi timeframe charts and technical indicators to spot trends. Larger time (weekly , monthly) frame charts are used to spot trends while as smaller time frame ( 4 hour, 1 hour) charts are used to spot entry points, exit points, stop loss and take profit levels. Different candlestick patterns like head and shoulder pattern, cup and handle pattern, moving averages and cross overs are being used by traders for different trading activities during swing trading.

Pros of Swing Trading.

it is less time consuming because in swing trading traders don't need sticking to the trading platforms to keep watching trends. Traders set trade according to their strategy and wait for desired trend and execute the trade.
It is less stressful than day trading.
It makes use of technical analysis strategy which is reliable form of strategy to follow.
Good returns are expected in short time.

Cons of swing trading.

As trade doesn't end in one session, traders are exposed to overnight and weekend risks.
As traders hold for more than one trading session, abrupt trading reversals can result in significant losses.
At times long term trends are missed in this type of trading.
it requires sound technical knowledge to flourish.
Gap up and gap down risks can cause signifcant loss

Technical Analysis of crypto-pairs in different time frames.

Differenr time frames of crypto pair to be traded has to be used as memtioned above and demonstrated below. However, to enter or exit, considering price charts along with indicators is mandatory. I think use of basic indicators like support, Resistance and momentum indicators like MACD and RSI when applied to short time frame charts can be potential good tools to determine entry and exit points. Also what i have heard many professional traders saying that don't use multiple indicators on same chart. It may only lead to confusion. However, to filter out false signals few indicators and multiple time frames usually suffice. Keeping same strategy in view, i am using 1month and 1 week chart to find the long term trend of the tradeing pair. Then to enter or exit into the trade, 4 hour chart with support, resistance , RSI and MACD and candle stick pattern like double top and double bottom are doing wonders.

Timeframe : Month

^{TRX / USD Monthly}

As seen above, monthly candlestick chart of TRX/USD shows downtrend towards end . However previously it has crossed second resistance zone (R2) , towards the end resistance break has occured but now we can see last candle has fallen back into previous resistance (R2) zone. So there is selling pressure.

Weekly time frame

It also shows downtrend towards the end with price rejection so we can expect price reversal which i shall support with the help of indicators and candlestick patrerns below .

Daily timeframe.

As seen above there is clear down trend . You cam see downtrend followed double top patrern so there is clear downtrend and selling pressure. However, we shall soon expect trend reversal as MACD line is merged with signal line ane is about to crowsover towards the end and RSI value has started rising up from oversold soon. So both of these indicators indicate forthcoming price reversal. So wait for price to rise above previous supporr level and enter and than set stop loss as per your covenence .

Please note that don't forget to set stop loss in your trade. It is usually set below previous low. As it is not possible that all trades may always go in your favour.
Enter trade only after self accessment of risk /benefit ratio and on that basis that set stop loss and target profit.
Select the amount to be traded only that much as you are willing to lose.

Thanks

Hello @drqamu,
Thank you for participating in the 7th Week Crypto Course in its second season and for your efforts to complete the suggested tasks, you deserve a 7/10 rating, according to the following scale:

Originality	Compliance with topic	Consistency of method	Quality of analysis	Clarity of structure & language
(1/2)	(2/2)	(1/2)	(1/2)	(2/2)

My review :

Well-content article in which I try to use various analytical techniques to determine the signals provided by the indicators used. What your work lacks is an in-depth analysis of other aspects of this topic, such as your trade management.

Thanks again for your effort, and we look forward to reading your next work.
Sincerely,@kouba01

Crypto Academy Week 15 , Homework post for [ @yohan2on].. Swing trading strategy.