Swing trading is a trading strategy employed in financial markets, including cryptocurrency, stocks, forex, and commodities, where traders aim to capture short- to medium-term price movements within a larger trend. Unlike day trading, which involves executing multiple trades within a single day, swing traders typically hold positions for several days to weeks, depending on the duration of the price swing they are attempting to capitalize on.

Swing traders analyze price charts and technical indicators to identify potential entry and exit points based on market trends, support and resistance levels, and momentum indicators. They seek to profit from price fluctuations between these support and resistance levels, buying at the bottom of price swings (support) and selling at the top (resistance).

Risk management is crucial in swing trading, as traders aim to maximize profits while minimizing losses. They often set stop-loss orders to limit potential losses and employ risk-reward ratios to assess the potential profitability of a trade.

Swing trading requires patience, discipline, and the ability to identify and capitalize on short- to medium-term market trends. It can be a suitable strategy for traders who cannot dedicate full-time hours to trading but still want to participate in financial markets and potentially generate returns over time.