Capture the 3-7 day moves that institutional flow creates.
Swing trading holds positions for days to weeks, targeting the structural moves that emerge from institutional order flow. Combines higher-timeframe direction with lower-timeframe entry precision. Lower stress than scalping, faster than trend following.
Daily chart shows a clear market structure (HH-HL or LH-LL).
Higher-timeframe context defines the trade direction.
4-hour chart pulls back to a structural level (prior swing high/low).
Aligns the entry with both timeframes.
1-hour chart shows a reversal pattern at the structural level.
Precision entry with tight stop placement.
Enter on the 1-hour reversal candle close with stop below its extreme.
Tight invalidation point relative to expected move size.
First target: the next opposing structural level on the daily chart.
Logical take-profit based on market structure, not arbitrary R multiples.
Second target: trail with 4h 20 EMA after first target.
Captures extended structural moves.
Stop to break-even once first target is hit.
Eliminates risk on the runner portion of the position.
Manual — swing highs and lows on the daily and 4h charts.
Trailing stop on the 4-hour chart.
Identifies high-volume nodes for trade targets.
Trailing stop
4h 20 EMA after first target.
Pros
Cons
Buy strength, sell weakness — let winners run.
The classic trend-following approach: identify the prevailing direction with moving averages, enter on pullbacks to value, and trail your stop until the trend breaks. Boring, reliable, and the strategy that built Tudor, Dunn, and Campbell.
Catch the explosion after the compression.
Breakout trading waits for price to compress inside a range or pattern, then enters in the direction of the breakout with a stop inside the former range. The thesis: low volatility begets high volatility, and the breakout is the inflection point.
Most chart patterns are just support and resistance with extra steps. Master horizontal levels, role reversal, and confluence — and skip the 200-page candlestick encyclopedia.
Stop measuring trades in dollars or pips. Measure them in R — multiples of your initial risk. Once you do, your win rate stops mattering and your expectancy takes over.
Open the Risk Calculator with the strategy’s recommended risk percentage already in mind.