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Swing trading is a common type of speculation aiming to capture price fluctuations in a short to medium time frame, typically between a couple of days and several months. Swing trades can both use fundamental or technical analysis to capitalize on these opportunities. This strategy is common among beginners to financial markets as the time frame suits most average traders. Swing trades come in all types and are present in all financial markets, forex, stocks, and cryptocurrencies.
This article covers the basic concepts of swing trading, the good, the bad, and everything in-between.
Swing trade is classified as a type of trading in financial markets where participants long or short in order to speculate on price movements. These trades pan out over a time frame of a couple of weeks to several months, depending on the market conditions. It is rarer to have swing trades that only last a couple of days, but it happens with crypto market volatility.
Swing trading comes in all sorts of forms; some traders aim to capture moves in volatile markets, such as low-cap stock and cryptocurrencies; While others trade less volatile markets such as commodities and blue-chip stocks. The common theme here is that speculators identify where an asset's price is likely to move, then they exercise a position in the market to capture the profit put on the table. Typically, swing traders utilize higher time frames, including but not limited to: 4HR, 8HR, Daily, Weekly, Monthly. These strategies usually work best in trending markets. It allows traders to capture overall trends, but this is not the end all be all. Many traders have a plethora of different strategies that work in select market conditions.
This is the holy grail question that, unfortunately, no trader has a definite answer to. The beautiful thing about financial markets is that participants develop an edge using a plethora of techniques. Typical swing traders utilize technical analysis heavily as well as some fundamental analysis. Swing Traders adopt Risk:Reward (R:R) ratios and other analysis techniques to define their risk and anticipate the profits that will be made.
This idea of R:R is coupled with things such as candlestick chart patterns, support and resistance levels, technical indicators, and even price action. This series of trading toolkits will build out a catalog of all of these concepts, helping mold beginner traders – hopefully, you are reading this when this article is built out with a plethora of hyperlinks; for now, please make due!
A key concept here is that there are hundreds if not thousands of edges to be captured in financial markets, but there is definitely not free lunch. A very basic strategy to outline is that of a trend following strategy. In this scenario, users will utilize trend lines, follow technical market structure, buy on pullbacks, and sell on rips. This is just one core way of swing trading among breakout trading, range trading, and other standard practices. Within these strategies, there lies limitless possibilities for capturing an edge in markets.
--Time Efficient
--Captures the bulk of market swings
--Rely on concrete factors such as TA
--Overnight risk is assumed
--Large exposure to markets results in substantial risjk in market reversals
--Miss out on the macro trends
Most people have heard of the glamour of an overinflated life style of day traders, or at least that's how it's portrayed. Day traders aim to capture short-term price fluctuations, typically intra-day, while swing traders look for larger multi-day moves. Day trading requires much more management, demanding real-time concentration and collectiveness. To keep it simple, day traders hold positions for no more than a day, while swing traders hold their positions from days to months.
When swing trading, participants must account for the unpredictability that comes with overnight risk, in equities and traditional markets, this can be seen in gap ups and gap downs, for crypto, this is just general overnight volatility. This results in different position sizing for each trader, as day traders must use larger position sizes to profit off smaller fluctuations, and vice versa for swing traders, smaller positions to catch larger moves.
These trading types also call for different styles; day traders typically exclusively rely on technical analysis. Swing traders, on the other hand, can incorporate both fundamental and technical analysis. Part of a swing trader's edge may be that the high probability of the underlying asset being higher in the next six months due to fundamental reasons, which gives them an edge in going long a majority of the time.
Swing traders rely on multiple days worth of market structure to trade common patterns or trends. The most common strategies revolve on moving average crossovers, cup-and-handle patterns, flags, pennants, and a plethora of other technical aspects.
These patterns individually do not mean much, but they can provide traders with an edge when coupled with a concrete strategy and plan. A key thing to understand in trading is that it is a probabilities game, and patterns fail all the time; this is why its key to adopt a risk management system, typically seen in R:R. The underlying goal all traders strive for is a positive expectancy.
This is a swing trade that was taken on GRT at the week of writing. The key thing to notice here is the confluence of multiple aspects of technical analysis that support the R:R tool's (traders) thesis. This trade leverages trend following, traditional chart patterns, R:R, and support and resistance levels.
As displayed in this example, this swing trade was completed in less than a couple of days. This trade was swift as crypto markets experience tremendous volatility. As previously stated, this is not always the case that trades can be anywhere from a day to multiple months.
Swing trading is an excellent place for beginner traders to start. This is due to multiple reasons such as smaller position requirements, time efficiency, and it's arguably less stressful. There is no one way to trade in financial markets but this article covers the swing trading basket. It is now up to the individual trader to hammer in their edge through studying markets. Finding an edge is not re-inventing the wheel but more of connecting the puzzle pieces to find a strategy that suits you and the current market conditions. Trading is not easy, but studying these materials will show improvement.
For those looking to get started trading, here are my referral links to exchanges I prefer (You will also get a 5% discount on trading fees) 😊
Ethereum celebrated an anniversary Friday, July 30. The world-changing blockchain that brought us smart chain technology and major innovations in crypto like decentralized finance and non-fungible tokens, turns six years old.
From the depths of Berlin in 2015, the blockchain built to change the world is on the verge of potentially its most important blockchain forks -- London Hard Fork.
As of late 2020, Ethereum has grown too big even for itself. The anticipation around crypto could not be higher for the upcoming fork. The first mentions of these changes came in 2019.
As the confetti settles from the birthday bash, Ethereum is set to make major changes in the functionality of its blockchain. On August 4th, Ethereum will complete its hard fork and take a critical step toward an overarching scalability upgrade of the network. But while all of crypto waits with bated breath, the Ethereum team appears unphased.
“Originally we envisioned something more like a big grant event where all the good things would happen at the same time and [Ethereum] would be a new blockchain and it would be a new protocol and people would have to take a lot of efforts to migrate over but later we've slowly changed the roadmap over to something that's much more incremental,” Vitalik Buterin, co-founder of Ethereum, told the Lex Fridman Podcast in June.
The hard fork results in a new transaction validation system due to the EIP 1559 proposal that passed. The chain will utilize a proof-of-stake system, allowing for more scalability and environmentally friendly consensus.
“Proof of stake happens kind of overtime, and then sharding is added over time, and all of these features get added over time. And so the experience for just a regular Ethereum user will still feel very seamless. It's maybe a little bit more complex than the hard forks that we've already done, but from a user's point of view not by that much,” Vitalik continued.
The updates will incorporate cutting-edge blockchain technology like sharding and move the chain from proof-of-work versus a proof-of-stake. The implications of these changes could bring a more efficient, secure, and sustainable Ethereum blockchain.
The hard fork will integrate five immediate updates called EIPs (Ethereum Improvement Proposals). Each change aims at optimizing and improving the network.
The most controversial and anticipated upgrade, dubbed "London," is EIP 1559. The EIP 1559 will make Ethereum less inflationary and is controversial because it will begin burning fees that previously went to miners.
This upgrade is the central improvement in an attempt to generate greater bandwidth and reduce transaction fees on the chain and is critical to the changeover to Proof-of-Stake.
“I like proof of stake. And I've liked proof of stake for many years, basically because it just requires much less ongoing resource consumption.” Buterin explained to Fridman. And about the benefits of adding validators, Vitalik added: “This is good for a few reasons: one is the kind of environmental rationale that you're not breaking the environment. The second is that you're not taking away electricity and other resources from other people.”
The hard fork does not come without criticism. There is the issue with miners losing their fees and the questions around Miner Extractable Value (MEV) remain unanswered.
Some argue that proof-of-stake will increase the centralization of the chain as well. Vitalik celebrates the environmental benefits of the overall transition and the preferred long-term benefits of the updates.
He welcomes the criticisms as good problems to have and looks forward to solutions. Despite being ‘controversial’ it is still likely the most anticipated fork in crypto history.
As Vitalik told Fridman on the podcast, the user will not see too many changes in how Ethereum will work––the major changes come behind the scenes. The Ethereum chain has fought hard in seeking to solve major scalability issues like congestion and latency.
Throughout, it still holds strong as the second most important blockchain, and rightfully deserved. But if it wants to keep competing, it will need to try and catch up to the speeds and transactions of newer chains like Binance Smart Chain and Solana.
The new updates and their incremental applications should make the next few months––and years––an exciting race for the top crypto and blockchain.
ApeSwap has shifted the date for its seventh Initial Ape Offering (IAO) with play-to-earn protocol, Dragonary, following a change in IAO vesting process enacted by community votes.
BSC.News earlier reported ApeSwap’s partnership with Dragonary on July 29th to collaborate for its seventh Initial Ape Offering (IAO 007). The Decentralized Exchange (DEX) protocol scheduled the IAO for August 2nd. However, due to some quality changes that arose from the new IAO vesting proposal, the ApeSwap team has decided to postpone IAO 007, according to its Tweet, from 30th July.
“With that in mind, we will be delaying IA0 007. The new date for Dragonary’s IAO is set for August 7th at 16:00 UTC,” read the official ApeSwap Twitter communication.
An IAO is a unique innovation created by the Binance Smart Chain-based DEX, ApeSwap. It was designed to support promising projects with fundraising by listing their tokens.
Projects like ApeRocket, Bitfresh, Hifi DeFi, JediYield, HyperuleSwap, and Bishares have shown massive development since utilizing ApeSwap’s IAO platform. Dragonary is the latest to join.
The new vesting process requires that 25% of tokens will be distributed immediately and the remaining 75% of tokens will be distributed over three months.
Notably, the change was provoked by community votes after many ApeSwap users proposed a change in the vesting process. Users voted on a new token claim structure, and the campaign lasted for five days (July 17 to July 21).
To satisfy the needs of its users, the ApeSwap team has created a whole new set of smart contracts. The new smart contracts come with new audits to ensure that users' funds are safe and secure. According to the update, the date for completing the audits has been set, but there will be a need to test, review, and possibly re-audit codes if necessary.
Therefore, the postponement of the IAO is attributed to the fact that the ApeSwap team wants to make sure that the new smart contract codes, including audits, are working effectively. In essence, they want to have enough time to test the smart contracts before launching the IAO with Dragonary.
With this, ApeSwap ensures that the safety of the community is its number one priority. In addition, users can anticipate a flawless IAO for Dragonary.
ApeSwap is a top name in the BSC network. It is the leading DEX on the BSC, which offers users the best trading experience. ApeSwap is a blend of a decentralized exchange, yield farming, staking, and an automated market maker (AMM). ApeSwap users are urged to partake in its liquidity pool offerings via yield farming to earn its native BANANA token. What's more, these earned tokens can be used to stake and earn other tokens and unlock deluxe features.
For more information about ApeSwap, visit the platform's media links:
Swing trading is an excellent place for beginner traders to start. This is due to multiple reasons such as smaller position requirements, time efficiency, and it's arguably less stressful.
Swing trading is a common type of speculation aiming to capture price fluctuations in a short to medium time frame, typically between a couple of days and several months. Swing trades can both use fundamental or technical analysis to capitalize on these opportunities. This strategy is common among beginners to financial markets as the time frame suits most average traders. Swing trades come in all types and are present in all financial markets, forex, stocks, and cryptocurrencies.
This article covers the basic concepts of swing trading, the good, the bad, and everything in-between.
Swing trade is classified as a type of trading in financial markets where participants long or short in order to speculate on price movements. These trades pan out over a time frame of a couple of weeks to several months, depending on the market conditions. It is rarer to have swing trades that only last a couple of days, but it happens with crypto market volatility.
Swing trading comes in all sorts of forms; some traders aim to capture moves in volatile markets, such as low-cap stock and cryptocurrencies; While others trade less volatile markets such as commodities and blue-chip stocks. The common theme here is that speculators identify where an asset's price is likely to move, then they exercise a position in the market to capture the profit put on the table. Typically, swing traders utilize higher time frames, including but not limited to: 4HR, 8HR, Daily, Weekly, Monthly. These strategies usually work best in trending markets. It allows traders to capture overall trends, but this is not the end all be all. Many traders have a plethora of different strategies that work in select market conditions.
This is the holy grail question that, unfortunately, no trader has a definite answer to. The beautiful thing about financial markets is that participants develop an edge using a plethora of techniques. Typical swing traders utilize technical analysis heavily as well as some fundamental analysis. Swing Traders adopt Risk:Reward (R:R) ratios and other analysis techniques to define their risk and anticipate the profits that will be made.
This idea of R:R is coupled with things such as candlestick chart patterns, support and resistance levels, technical indicators, and even price action. This series of trading toolkits will build out a catalog of all of these concepts, helping mold beginner traders – hopefully, you are reading this when this article is built out with a plethora of hyperlinks; for now, please make due!
A key concept here is that there are hundreds if not thousands of edges to be captured in financial markets, but there is definitely not free lunch. A very basic strategy to outline is that of a trend following strategy. In this scenario, users will utilize trend lines, follow technical market structure, buy on pullbacks, and sell on rips. This is just one core way of swing trading among breakout trading, range trading, and other standard practices. Within these strategies, there lies limitless possibilities for capturing an edge in markets.
--Time Efficient
--Captures the bulk of market swings
--Rely on concrete factors such as TA
--Overnight risk is assumed
--Large exposure to markets results in substantial risjk in market reversals
--Miss out on the macro trends
Most people have heard of the glamour of an overinflated life style of day traders, or at least that's how it's portrayed. Day traders aim to capture short-term price fluctuations, typically intra-day, while swing traders look for larger multi-day moves. Day trading requires much more management, demanding real-time concentration and collectiveness. To keep it simple, day traders hold positions for no more than a day, while swing traders hold their positions from days to months.
When swing trading, participants must account for the unpredictability that comes with overnight risk, in equities and traditional markets, this can be seen in gap ups and gap downs, for crypto, this is just general overnight volatility. This results in different position sizing for each trader, as day traders must use larger position sizes to profit off smaller fluctuations, and vice versa for swing traders, smaller positions to catch larger moves.
These trading types also call for different styles; day traders typically exclusively rely on technical analysis. Swing traders, on the other hand, can incorporate both fundamental and technical analysis. Part of a swing trader's edge may be that the high probability of the underlying asset being higher in the next six months due to fundamental reasons, which gives them an edge in going long a majority of the time.
Swing traders rely on multiple days worth of market structure to trade common patterns or trends. The most common strategies revolve on moving average crossovers, cup-and-handle patterns, flags, pennants, and a plethora of other technical aspects.
These patterns individually do not mean much, but they can provide traders with an edge when coupled with a concrete strategy and plan. A key thing to understand in trading is that it is a probabilities game, and patterns fail all the time; this is why its key to adopt a risk management system, typically seen in R:R. The underlying goal all traders strive for is a positive expectancy.
This is a swing trade that was taken on GRT at the week of writing. The key thing to notice here is the confluence of multiple aspects of technical analysis that support the R:R tool's (traders) thesis. This trade leverages trend following, traditional chart patterns, R:R, and support and resistance levels.
As displayed in this example, this swing trade was completed in less than a couple of days. This trade was swift as crypto markets experience tremendous volatility. As previously stated, this is not always the case that trades can be anywhere from a day to multiple months.
Swing trading is an excellent place for beginner traders to start. This is due to multiple reasons such as smaller position requirements, time efficiency, and it's arguably less stressful. There is no one way to trade in financial markets but this article covers the swing trading basket. It is now up to the individual trader to hammer in their edge through studying markets. Finding an edge is not re-inventing the wheel but more of connecting the puzzle pieces to find a strategy that suits you and the current market conditions. Trading is not easy, but studying these materials will show improvement.
For those looking to get started trading, here are my referral links to exchanges I prefer (You will also get a 5% discount on trading fees) 😊
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