If you’ve been in the markets for a while, you’ve probably noticed something — indicators can get noisy, but price never lies. That’s where price action swing trading comes in. It’s clean, adaptable, and, once you understand the rhythm, almost feels like a cheat code for the markets.
Let’s break this down in plain English and see how you can put it to work.
1. The Timeframes That Actually Matter
We’re not day traders chasing every tick here — swing trading means catching moves that last days to weeks.
Here’s my go-to setup:
- Daily chart (D1): Your main swing entry chart.
- 4-hour chart (H4): Fine-tunes your entries and risk placement.
- Weekly chart (W1): For big-picture trend bias. Think of it as your compass — you don’t set sail without knowing which way the wind blows.
2. Core Price Action Patterns
You don’t need a 100-page chart pattern encyclopedia. These few setups cover most situations:
- Breakouts: Price clearing a well-defined range or level. Works best with volume confirmation.
- Flags: A strong impulsive move followed by a small, orderly pullback before continuation.
- Triangles: Price compressing into a tighter range — when it breaks, it often runs hard.
- Base Re-tests: Price breaks out, pulls back to the breakout zone, and then takes off again.
- False Break Traps: Price fakes out traders by breaking a level and quickly reversing — amazing for catching people on the wrong side.
3. Confluence Is King
One pattern alone? Meh. Multiple factors lining up? That’s where magic happens.
Look for:
- Support/Resistance zones: Historical turning points.
- Moving Averages: I like the 20EMA and 50SMA — they act as dynamic S/R.
- Volume Expansion: Breakouts without volume are just… polite suggestions.
- Market Breadth Filter: Is the overall market healthy, or is your trade swimming against the current?
4. Entry & Exit Rules (The Boring Stuff That Saves Your Account)
- Stops: Use ATR (Average True Range) to give trades breathing room.
- Scaling: Add size only if the trade is proving itself, not because you “feel” like it.
- Time-based exits: If a trade goes nowhere in 3–5 bars on your entry timeframe, cut it. Dead trades eat capital.
5. Risk Model: How to Not Blow Up
I stick to the 1–2% rule — risk that per trade, no more. Here’s what it looks like:
- Example: $10,000 account, 1% risk = $100 max loss per trade.
- If your stop loss is $2 away from entry, you take 50 shares ($100 ÷ $2).
- Keep it mechanical — guessing is how accounts disappear.
6. Review: 3 Trades, 3 Lessons
Win — Triangle Breakout on XYZ
- Entry: Break of triangle resistance with volume surge.
- Exit: Trailed stop under 20EMA.
- Lesson: Volume confirmation kept me in through the noise.
Loss — False Break Trap on ABC
- Entry: Bought breakout, no volume, market breadth negative.
- Exit: Stop hit in 2 bars.
- Lesson: Ignored confluence. Paid tuition to the market.
Breakeven — Base Re-test on DEF
- Entry: Pullback to breakout level.
- Exit: Price stalled, no momentum, cut flat.
- Lesson: Time-based exits keep capital free for better setups.
The Bottom Line
Swing trading with price action isn’t about predicting the future — it’s about stacking odds in your favor, managing risk like a pro, and letting the market do the heavy lifting. Learn the patterns, respect your stops, and remember: cash is a position too.
