Meaning of Swing call in stock market
Before know about swing call strategy we need to understand what Swing call is.
What is Swing Trading?
Swing Trading takes advantage of price moment in short term to ride the momentum in the direction of the trend.
- Swing trading combines the best of two worlds — the slower pace of investing and the increased potential gains of day trading.
- Swing traders hold stocks for days or weeks and earn in upward or downward trends.
- Some people call it momentum investing, because you only hold positions that are making major moves.
How to Swing Trade?
Before you understand how to Generate Swing call you 1st need to understand trades
What are up/down trends are.
Up Trend: When particular Stock or Instrument create higher highs closing basis and higher lows in closing basis. Its called upward trend.
Down Trend: When Particular stock or instrument creates lower lows on closing basis and lower highs on closing basis. It’s called downward trend.
Swing Buy Call: Once you identified that its upward trends Swing trader take long position. With trading stop technique once stock brake lower candle Low. Long position sq up and wait for another trend.
Swing Short Call: Once you identified that its Downward trends Swing trader take Short position. With trading stop technique once stock brake Higher candle High. Short position sq up and wait for another trend.
You can Find Swing Trading Amibroker AFL Here
Also Read :
What is day trading and swing trading?
How to Compare Brokerage Firms?