The RSI Swing Trading Guide PDF offers a comprehensive primer for aspiring swing traders, focusing on capturing larger market moves over days to weeks. Unlike the fast-paced nature of day trading, swing trading provides a less stressful approach, ideal for those with limited time, aiming to turn small gains into substantial profits.
The guide outlines three core rules: embracing psychologically challenging trades, fading short-term trends against the long-term direction, and placing entries where the crowd sets stops to exploit institutional liquidity. It introduces three key indicators—20-period Moving Averages for trend direction, RSI for momentum shifts, and Chaikin Money Flow for buying/selling pressure—combined into a simple, profitable strategy.
With step-by-step instructions, including chart setup and exit tactics, this guide empowers traders to execute high-probability trades, like the example yielding a 1:7 risk-reward ratio, fostering a solid foundation for success.
Excerpts
This swing trading guide will teach you all you need to know before you start swimming with
the sharks. We’re going to give you a comprehensive introduction to swing trading and what you
can expect in terms of growing your account as a swing trader.
The main advantage of swing trading is that it gives you the opportunity to turn small profits into
big profits. Unlike day trading, if the market conditions are favorable you can hold your trades
for weeks or even months.
However, one trading style isn’t better than the other. In the end it all comes down to which
trading style suits your personality and your needs. But still swing trading is like a microwave
trading comparing with the fast pace associated with day trading.
Swing trading can be less stressful and has some advantages that can help you increase your
account balance. But to accomplish this, we’re going to use some swing trading indicators that
will give us a picture of where the market is headed.
We’re going to go over different steps and give you some simple but yet profitable swing
trading strategies to get you started as a swing trader. Our goal is that by the end of this swing
trading guide you’ll have a solid understanding on how to find, evaluate and execute successful
swing trades.
Introduction to Swing Trading
In technical analysis, swing trading is a trading strategy that has the main goals to catch bigger
moves in the markets. The swing trades can last anywhere between few days to several weeks
but no more than 3 weeks. There are three major trading rules for swing trading that anyone
needs to follow to be a successful swing trader.
The first rule is that a good trade will always be hard to place from a psychological point of view.
The rule number two is to always fade short-term trends against the long-term trend.
The third rule is more controversial because we suggest to always placing your entry where the crowds places their stops. The majority of traders will place their stops at very predictable places, like below and above major swing low and swing high points.
To explain more the third swing trading rule you need to know that the institutional trader’s job
is to generate the liquidity to get into the position. They can’t trade like the retail traders do.
Invariably the market makers will not know where the stops are, but they know where most of
the uneducated traders will place their stops and invariable the market will go to where the stops
are over and over again.
One of the main objectives behind swing trading is to profit from different price swings in the
market. As a swing trader you don’t trade every single day. You want to capitalize off of a larger
time frame thus getting much better profits than what you can get from shorter time frames.
The second advantage of employing swing trading strategies is that it minimizes the time
commitment. If you have a full-time job you can’t be actively involved in the market so if you
want to take advantage of the financial markets, swing trading is a good alternative.
Let’s now talk about some of the swing trading indicators you can use to profit the markets.