A practical swing strategy for 2–7 days is: trade only liquid trending coins, enter on pullbacks to support with momentum confirmation on 4H–1D charts, and exit at predefined targets or when momentum weakens, always with strict risk management.
1. Timeframe and tools
Use:
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Higher timeframe for trend: 1D chart to define main trend and key levels.
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Trading timeframe: 4H for entries and exits (ideal for 2–7 day holds).
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Indicators:
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20 & 50 EMA (trend and dynamic support/resistance).
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RSI 14 (momentum/overbought–oversold).
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ATR 14 (to size stops and position).
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2. How to filter coins for swing
On screener (CoinMarketCap / CoinGecko + your exchange list):
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Liquidity and volume
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24h volume preferably in top coins; avoid illiquid/memecoins for start.
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Tight spreads and good orderbook on your exchange.
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Trend and structure (on 1D)
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Price above 50 EMA for long setups (uptrend bias).
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Clear series of higher highs and higher lows.
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Avoid choppy ranges with no clear direction unless using range strategy.
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Volatility
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ATR not extremely low (no movement) and not insanely high (too wild).
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Look for coins that move but are not crazy spiky.
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3. Entry rules (trend–pullback strategy)
Base idea: trade in direction of daily trend, enter on pullbacks on 4H.
For LONG setups:
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Pre-conditions (1D chart)
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Price above 50 EMA and 20 EMA above 50 EMA (healthy uptrend).
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No major resistance immediately overhead (check left structure).
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Pullback zone (4H chart)
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Price pulls back towards:
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20 or 50 EMA on 4H, or
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Horizontal support (previous swing high or support zone).
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Prefer confluence: EMA + horizontal level + Fibonacci 0.5–0.618 of last impulse.
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Momentum confirmation
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RSI on 4H between 35–50 and turning up (not below 30 crashy unless you are very aggressive).
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Bullish candle pattern near support: pin bar, engulfing, or strong close back above level.
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Optional: volume spike on bullish candle vs prior candles.
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Entry trigger
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Enter at close of confirming bullish candle that respects support/EMA zone.
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No entry if candle closes strongly below support or 50 EMA (trend may be breaking).
For SHORT setups (if you trade futures, higher risk):
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Same logic reversed: price below 50 EMA on 1D, pullback to resistance on 4H, RSI 50–65 turning down, bearish candle at resistance.
4. Stop-loss, target, and exit
Stop-loss placement
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Technical stop:
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A few ticks below swing low / support / 50 EMA for long trades.
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Volatility filter:
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Place stop roughly 1–1.5 × ATR below entry (on 4H) if that is still under support.
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Never move stop further away after entry; only move it closer (trailing) as trade works.
Position sizing (risk management)
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Risk per trade: 0.5–1% of total capital per trade (for beginners).
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Position size formula:
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Position size = (Account size × risk%) ÷ (Entry price − Stop price).
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Avoid over-leverage; for futures, size so liquidation is far from stop.
Take-profit and exits
Common swing TP logic for 2–7 days:
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Main targets:
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TP1 at recent swing high or next resistance zone on 4H/1D.
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TP2 at extension beyond that (e.g., 1.272–1.618 Fibonacci of swing).
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Exiting rules:
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Exit at TP levels (can scale out: 50% at TP1, rest at TP2).
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Or exit if:
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RSI on 4H goes above 70 and starts turning down (momentum exhaustion).
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Price closes below 20 EMA, then below 50 EMA on 4H (trend weakening).
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Strong bearish reversal candle on resistance with high volume.
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Trailing stop (optional):
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After price moves 1R in profit (distance from entry to stop), move stop to breakeven.
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Then trail under higher lows / 20 EMA on 4H until hit.
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5. Example rule-set you can code/test
For LONG swing trades (4H execution, 1D trend filter):
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Filter:
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1D: price > 50 EMA, 20 EMA > 50 EMA.
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24h volume above your threshold.
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Setup:
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4H: price retraces to zone between 20 EMA and 50 EMA or horizontal support.
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RSI 4H between 35 and 50 and turning upwards.
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Bullish engulfing / strong bullish candle closing in upper 30% of its range.
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Entry:
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Buy at candle close.
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Stop:
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Below recent swing low or 1–1.5 × ATR below entry, whichever is slightly further but reasonable.
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Target:
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TP1: previous 4H/1D swing high.
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TP2: next resistance or 1.272–1.618 Fib extension.
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Exit override:
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Close full trade if 4H candle closes below 50 EMA or RSI crosses below 40 after entry.
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This gives you a clear, mechanical 2–7 day system you can backtest and refine.
If you share which exchange and timeframes you mainly use (only spot or also futures, leverage, min capital), a more customized version with exact parameter values can be created.
Reviewed by Admin team
on
January 02, 2026
Rating:





