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4.1 What is Swing Trading

Everyone is familiar with waves. A wave alternates from positive to negative, then

to positive and negative, and so on. Waves are found in nature – you see waves

when you throw a rock into a lake. Sound is transmitted in waves. And when stock

prices change, they follow a wave-like pattern. The wave is rarely as orderly a sine

wave, but they are waves nevertheless, and we use these waves in Swing Trading.