3. Methods for Swing Trading

Swing trading can be divided into long-term and short-term swings. Short-term swings require constant monitoring of the market, keeping an eye on the strength of both bullish and bearish forces, as well as tracking the 5-day and 30-day moving averages on 1-minute, 3-minute, 5-minute, and 15-minute charts, but this can be quite exhausting. Today, I will teach you a more relaxed trading method.

The so-called relaxed trading method means that you do not need to constantly monitor the market; you just need to identify the support and resistance levels. In the case of prolonged sideways movement, the price will oscillate within a range, and we only need to observe the highest and lowest price points of that range.

Then, set a buy order at 0.5% below the lowest point and a sell order at 0.5% above the highest point. This is a relatively conservative approach that reduces some risks but increases the single trade’s return rate.

For those who are more aggressive, you can buy at 0.5% above the lowest point and sell at 0.5% below the highest point. This method will decrease the single trade’s return rate but increase the number of trades. I suggest taking a more conservative approach by using the first method; the more you trade, the more transaction fees you incur, which is unnecessary.

Note: This method should only be used when there is sufficient price fluctuation, ideally not less than 5%, otherwise half of your profits could go towards transaction fees.

If the cryptocurrency price trend is favorable and is in a stable upward trend from a long-term perspective, you can set your buy price for each swing at 3% above the previous swing's lowest point. Sell at 5% above the previous swing's highest point to maximize profit.

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