Swing trading is a strategy for profit by capitalizing on upswings and downswings in the short term. Swing traders will often hold positions for six days to a few weeks, depending on how profitable the trade is.
Swing traders will generally begin their day well before the daily trading session for two main reasons. To get information about the daily market and any news that might affect it and to get an idea of potential trades.
This strategy uses the Fibonacci retracement pattern that can help identify resistance and support levels which can help identify reversal levels on stock charts. The concept of this pattern is that stocks tend to retrace a specific percentage before reversing again.
Technical analysis tools can help swing traders develop their strategies or even strengthen any that they are already using. They are an essential asset to have under your belt as they will make your research much simpler.
There are many tools available, so you should use one that compliments your style and strategy. Some tools are:
StockTwits: In essence, this analysis tool combines the feed UI of Twitter and turns it into an app that provides real-time news on stock trades.TradeMiner: TradeMiner is a tool that can help you conduct any technical research you may need.TradeTracker: TradeTracker is a simple tool that helps you keep track of all your trades.