Does Swing Trading Works in Cryptocurrency Market?

shubham

Swing trading works well in stock markets. Does it work in crypto too?

gopal

Swing trading works well in traditional markets where fundamental data is available. Without fundamental data like earnings, news flow, or big investor action, it is impossible for anyone to decide if there are chances for a swing.

harsh

Yes, crypto markets too have swing trades. Recently, we saw that in the Jackson Hole meeting of the US, the Fed chair Jerome Powell’s comments caused crypto to swing. This was also caused when Elon Musk’s company Space X sold its entire Bitcoin holdings.

raman

Swing trading works in crypto markets too. If you take a look at the following chart, you can see that whenever MACD’s blue line goes below the orange line (aka Trend Line), there is a downfall in prices. This causes a reversal in the direction where you can short the crypto and sell. Similarly, on the upside, whenever the MACD line (blue) goes above the Trend Line (orange), you can initiate a buy and hold. This is how swing trading works in cryptocurrency markets.