Swing trading is very popular among Forex traders, as it is both dynamic and profitable. However, just like any other trading method out there, swing trading comes with its own ups and downs. Let’s discuss the specifics of this approach and find out which time frame is best for swing trading.

The straightforward definition of swing trading for beginners is that users seek to capture gains by holding an instrument anywhere from overnight to several weeks. The objective is to capitalize on a greater price shift than is possible in an intraday time frame. But because you follow a larger price range and shift, you need calculated position sizing so you can decrease downside risk. To do this, individuals call on technical analysis to identify instruments with short-term price momentum.

Markets move in waves known as swings in the price of the instrument. No market, for example, will trend up without having some sort of retrace in price.