The stock market is full of opportunities, but not everyone can sit in front of their screen all day to track every tick. That’s where long swing trading comes in—a strategy that lets traders capture short-term price movements within an overall uptrend. It’s not day trading, and it’s not long-term investing—it sits comfortably in between, making it perfect for traders who want to balance market participation with their daily routine.
In this blog, we’ll break down how long swing trading works and how you can apply it in the markets for consistent profits.
Table of Contents
What is Long Swing Trading?
ong swing trading is a strategy where you buy a stock during a pullback in an uptrend and hold it for a few days to weeks, aiming to exit at a profit when the stock resumes its upward move. The goal is to ride the wave of an ongoing trend while avoiding unnecessary risk.
This strategy works well because:
✅ It follows the trend – You’re trading in the stock’s natural direction.
✅ You buy at a discount – Entering during a pullback means you’re not chasing high prices.
✅ You manage risk effectively – Using a stop-loss ensures that your losses are controlled.
How to Apply Long Swing Trading in the Markets?
Let’s break it down into a simple step-by-step approach for traders.
Step 1: Picking the Right Stocks
Not all stocks are suitable for swing trading. Here’s how to filter the best ones:
✔ Stick to NSE F&O stocks – Stocks in the Futures & Options (F&O) segment are highly liquid and less likely to be manipulated.
✔ Look for strong uptrends – Stocks should be above their 10-day and 20-day moving averages (MA).
✔ Check daily trading volume – A minimum 500,000 shares per day ensures smooth trade execution.
✔ Avoid very cheap stocks – Focus on stocks trading above ₹100 to reduce volatility risks
Click on the picture below to Open Demat account with Zerodha
Step 2: Identifying the Buy Signal
The ideal buy entry in long swing trading happens when:
- The stock is in an uptrend (price above 10-day & 20-day MAs).
- The stock has pulled back slightly over the last 2-3 days (lower highs).
- The Force Index indicator confirms strength (Short-term Force Index is negative, but long-term is positive).
- ADX is above 30, meaning the stock is trending strongly.
✅ Entry Rule:
Place a Buy Stop Order 0.5% above the previous day’s high.
If the stock gaps down by more than 1%, wait 5 minutes before placing your order.
If the stock gaps up by more than 1% at market open, wait 30 minutes before entering.
Step 3: Setting the Exit Strategy (Profit & Stop-Loss)
Once your trade is executed, immediately set your exit orders:
✔ Profit Target: 5-6% above entry price (instead of 7% in Western markets).
✔ Stop-Loss: 3% below entry price or below the previous day’s low (whichever is higher).
✔ Trailing Stop Strategy: If the stock moves up, adjust the stop-loss higher to lock in profits.
Step 4: Managing the Trade Like a Pro
- If the trade isn’t executed on day one, repeat the process for up to 5 trading days.
- If the stock gaps up or down the next day, adjust stop-loss accordingly:
- Wait 30 minutes for a gap up.
- Wait 5 minutes for a gap down.
Best Practices for the Traders
✔ Avoid trading during high volatility periods:
- 9:15 AM – 9:45 AM (opening rush)
- 2:45 PM – 3:30 PM (pre-close volatility)
✔ Stick to NSE F&O stocks for better liquidity.
✔ Use Bracket Orders (BO) or GTT Orders (Good Till Triggered) on brokers like Zerodha, Upstox, or Angel One to automate stop-loss and take-profit orders.
✔ Keep emotions in check – Stick to the plan, avoid chasing stocks, and don’t panic-sell.
Disclaimer: Readers to note that the strategy is given for educational purpose. Not meant to be any kind of recommendation for trading.
