How to do swing trading using price action and volume analysis

Swing trading is an advanced trading strategy where the trader looks to buy an asset, hold it for a few days to a few weeks, and then sell it. This article will introduce you to swing traders and the tools they use, including price action and volume.


Swing trading is a strategy that involves holding a position for a period of time and then selling it when the price reaches a certain level. The goal of swing trading is to generate returns that are greater than the market average.

There are two main types of swing trading strategies: trend following and mean reversion. Trend following strategies involve buying stocks that are in an uptrend and selling them when the trend reverses. Mean reversion strategies involve buying stocks that are undervalued and selling them when they return to their fair value.

The best swing trading strategy will depend on the individual trader’s goals and risk tolerance. However, all swing trading strategies have one thing in common: they require patience and discipline to be successful.

Here are two steps to help you develop a winning swing trading strategy:

  1. Define your goals – What do you want to achieve with your swing trading strategy? Are you looking to generate income or grow your capital? What level of risk are you comfortable with? Answering these questions will help you determine what type of strategy to use and what timeframe to trade in.

  2. Find an edge – In order for your swing trading strategy to be successful, you need to have an “edge” over the market. This could be anything from having better information about a company’s earnings releases before the general public does, or using technical analysis to identify trends that others haven’t noticed yet.

What is Swing Trading?

  1. What is Swing Trading?

Swing trading is a strategy that involves holding a stock or other asset for a period of time, generally overnight or for several days, in order to profit from price changes or “swings.”

Swing traders typically look for stocks with high volatility and ample liquidity, as these characteristics tend to create large price swings that can be exploited for profit. Swing trading also tends to work well in markets that are trending, as prices usually continue moving in the same direction after a breakout or reversal.

There are a number of different swing trading strategies, but most involve some combination of technical analysis and fundamental analysis. Technical analysis focuses on chart patterns and other indicators to identify potential entry and exit points, while fundamental analysis looks at factors like company earnings, industry trends, and economic data to find stocks that are under- or overvalued.

Types of Swing Trading Strategies

Swing trading is a popular strategy for investors who want to take advantage of short-term market movements. There are several different swing trading strategies that investors can use, each with its own advantages and disadvantages.

One popular swing trading strategy is to buy stocks that are showing signs of an uptrend and sell them when they start to show signs of a downtrend. This strategy can be profitable if the investor correctly predicts the direction of the market. However, it can also lead to losses if the market turns against the investor’s predictions.

Another common swing trading strategy is to buy stocks that have been oversold and sell them when they become overbought. This strategy takes advantage of the fact that stock prices often bounce back after falling sharply. However, it can be difficult to timing the market correctly using this strategy.

A final popular swing trading strategy is known as momentum investing. This involves buying stocks that are showing strong signs of price momentum and selling them when their momentum starts to slow down. Momentum investing can be profitable if the investor times the market correctly but can also lead to losses if the stock price reverses course before the investor sells.

The Basic Swing Trading Strategy

Assuming you are trading with a 100,000 account, each trade should be no more than 1% of your account value. This means you can take a position size of 10000 shares in a 50Rs stock if stop loss is 1 Rs.

When swing trading, you should always use a stop-loss order to protect your position. A stop-loss is an order that will automatically sell your shares at a set price if the stock falls below that price.

For example, let’s say you buy 1000 shares of XYZ stock at 50 per share. You could place a stop-loss order at 45 per share. If the stock falls to 45 per share, your stop-loss order will be triggered and your shares will be sold automatically.

Your goal should be to make 2-3% per trade. This may seem like a small amount, but it can add up quickly if you are making multiple trades per month.

The basic swing trading strategy is simple:

  1. Find a stock that is trending higher or lower.

  2. Place a buy or sell order near the support or resistance level.

  3. Place a stop-loss order below the support or above the resistance level.

  4. Target 2-3% profits per trade


In this post, we have discussed what is swing trading. How a beginner can do swing trading using simple support and resistance strategy.
The advantage of swing trading over other forms is that, you capture big moves. And emotions hardly comes your way.

Are you a swing trader? And what is your swing trading strategy?


Nice article, but if you would put some charts.That would be great