The real Secrets To Swing Trading are not about finding a trade every day. They are about identifying the few market conditions where momentum is clearly weighted in one direction and then patiently waiting for a high-quality setup.
Michael J. Huddleston, the founder of ICT (Inner Circle Trader) concepts, teaches this swing trading approach in the ICT Forex – Market Maker Primer Course. The framework uses higher-timeframe momentum, a simple moving average filter, market structure, and ICT Optimal Trade Entry concepts to help traders stay aligned with the dominant move.
One of the most important lessons is that traders do not need to know the daily bias correctly every single day.
As Michael J. Huddleston explains:
“You don’t need to know that. You just need to know the few times a month or a couple times a week when it’s really loaded in one direction over the other.”
This principle completely changes the way a trader approaches the market.
The objective is not constant participation.
The objective is to identify favourable swing conditions and wait.
What Is Swing Trading in ICT?
Swing trading attempts to capture a meaningful portion of a directional market move over a longer period than a typical day trade.
A swing position may remain open overnight and sometimes continue for several trading days.
The trader is trying to participate in the meat of the move, not necessarily predict the exact market high or low.
In ICT swing trading, the process is generally:
Higher Timeframe Momentum → Directional Filter → Hourly Setup → Optimal Trade Entry → Partial Profits → Hold a Remaining Position
The trader first determines which side of the market should be favoured.
Only after establishing that context does the trader begin looking for an entry.
You Do Not Need a Trade Every Day
One of the biggest mistakes traders make is believing they need a daily bias and a trade every session.
A trader wakes up and immediately asks:
Should I buy today?
Should I sell today?
Where is today’s setup?
This creates unnecessary pressure.
Swing trading does not require constant action.
Some weeks may provide several opportunities.
Other periods may offer very few suitable setups.
Huddleston emphasizes that swing trades are not everyday trades.
The goal is to identify when the market is strongly aligned in one direction.
When conditions are unclear, the trader waits.
This approach may look slower, but it can help prevent overtrading and poor-quality entries.
Start With the Daily Chart
The first step in this ICT swing trading framework is the daily chart.
The daily timeframe is used to determine intermediate-term momentum.
Rather than trying to predict every daily turning point, the trader attempts to remain aligned with the broader directional environment.
Huddleston introduces a simple momentum filter using two exponential moving averages:
10-Period Exponential Moving Average
20-Period Exponential Moving Average
Both are applied to the closing price.
The daily chart is the primary timeframe for identifying whether the market is in a bullish or bearish swing trading condition.
Using the 10 and 20 EMA for Swing Trading
The moving averages are not used as automatic buy and sell signals.
They are used as a directional filter.
The basic idea is to help the trader stay on one side of the market.
Bullish Swing Trading Condition
A bullish condition develops when:
10 EMA moves above the 20 EMA
The trader also wants to see both moving averages pointing higher.
Ideally, the 10 EMA begins separating from the 20 EMA.
This separation is referred to as stacking.
The bullish condition looks like:
10 EMA Above 20 EMA → Both Pointing Higher → Averages Spreading Apart
During this environment, the swing trader primarily searches for long positions.
Bearish Swing Trading Condition
A bearish condition develops when:
10 EMA moves below the 20 EMA
Both averages should preferably point lower.
The 10 EMA should begin separating below the 20 EMA.
The bearish condition looks like:
10 EMA Below 20 EMA → Both Pointing Lower → Averages Spreading Apart
During this environment, the swing trader primarily searches for short positions.
What Is Moving Average Stacking?
Moving average stacking occurs when the faster and slower moving averages separate while pointing in the same direction.
In a bullish condition:
The 10 EMA is above the 20 EMA.
Both are pointing higher.
The distance between the averages begins increasing.
In a bearish condition:
The 10 EMA is below the 20 EMA.
Both are pointing lower.
The distance between them begins increasing.
This helps identify a market displaying directional momentum.
The moving averages are not predicting the future.
They are simply helping the trader recognise when the current market environment is strongly directional.
Look for Price Leaving Consolidation
The ideal condition is not simply a moving average crossover.
The trader should also study price action.
Markets generally move through two obvious conditions:
Trending → Consolidating → Trending
A high-quality swing trading environment can develop when price begins leaving consolidation.
For a bullish condition, the trader may look for:
Consolidation → Break Above Swing High → 10 EMA Above 20 EMA → Bullish Stacking
For a bearish condition:
Consolidation → Break Below Market Structure → 10 EMA Below 20 EMA → Bearish Stacking
This shows that price is demonstrating a willingness to leave the previous range.
The trader can then begin searching for retracement entries.
Use the Daily Chart Only for Directional Context
Huddleston specifically emphasizes using this moving average framework on the daily chart.
Do not assume that applying the same crossover technique to every 1-minute or 5-minute chart will provide the same quality of information.
The daily chart provides the broad swing trading context.
The process is:
Daily Chart → Identify Bullish or Bearish Condition
Then:
Move to the 1-Hour Chart → Search for Swing Entry
This separation of timeframe roles is important.
The daily chart answers:
Which side should I favour?
The hourly chart answers:
Where can I enter?
Why the 1-Hour Chart Is Important for Swing Trading
Huddleston describes the 60-minute chart as an ideal swing trading timeframe.
The hourly chart contains enough detail to identify meaningful impulse moves and retracements while still maintaining a connection with daily and weekly price action.
It avoids much of the noise commonly found on very low timeframes.
Once a bullish or bearish condition has been established on the daily chart, the trader drops to the hourly chart.
The objective is now to find an ICT Optimal Trade Entry in the direction of the daily momentum.
Mapping Bullish Swing Trading Conditions
Suppose the daily chart displays bullish momentum.
The 10 EMA has crossed above the 20 EMA.
Both moving averages are pointing higher and spreading apart.
The trader now treats this as a bullish swing trading environment.
The trader moves to the hourly chart.
The basic long setup process is:
Daily Bullish Condition → Hourly Price Moves Higher → Impulse Leg Forms → Retracement → Optimal Trade Entry → Long
The trader wants to see price demonstrating bullish intent.
Price should move away and produce an identifiable bullish impulse swing.
After the impulse leg forms, the trader waits for retracement.
The retracement may then create an Optimal Trade Entry.
Bullish Hourly Chart Filter
During a bullish daily condition, the trader does not automatically buy every retracement.
The hourly chart is also filtered.
Price should generally demonstrate strength relative to the 20 EMA.
A valid bullish condition may allow price to temporarily retrace below the 20 EMA.
However, Huddleston explains that the 10 EMA should not cross below the 20 EMA during the retracement.
The bullish filtering process is:
Daily Bullish Context
↓
Hourly Bullish Impulse
↓
Price Retraces
↓
10 EMA Remains Above 20 EMA
↓
Optimal Trade Entry
↓
Long Position
If the 10 EMA crosses below the 20 EMA, the trader avoids the long setup.
This filter intentionally removes many trades.
That is the purpose.
Implementing ICT Optimal Trade Entry for Long Positions
Once the bullish condition is present, the trader identifies an impulse leg on the hourly chart.
The Fibonacci retracement tool is applied to the relevant price swing.
The trader then looks for the ICT Optimal Trade Entry, commonly associated with the deeper retracement portion of the impulse swing.
The sequence becomes:
Bullish Momentum → Impulse Higher → Retracement Into OTE → Buy
The stop loss is generally positioned below the relevant swing low or invalidation point.
The trader then targets projected expansion levels.
Huddleston demonstrates using:
- Target 1
- Target 2
- Symmetrical price swings
- Fibonacci extensions
The key is not to blindly buy because a Fibonacci level has been reached.
The OTE should appear inside the correct higher-timeframe directional condition.
Mapping Bearish Swing Trading Conditions
The same process is reversed for bearish conditions.
On the daily chart:
The 10 EMA moves below the 20 EMA.
Both moving averages point lower.
The averages begin spreading apart.
Price demonstrates a willingness to move away from consolidation.
The trader now treats the market as a bearish swing trading environment.
The process becomes:
Daily Bearish Condition → Hourly Impulse Lower → Retracement → Optimal Trade Entry → Sell
The trader focuses primarily on short positions.
Bearish Hourly Chart Filter
During a bearish daily condition, the trader waits for price to trade below the moving average structure and demonstrate bearish momentum.
Price can temporarily spike above the 20 EMA during a retracement.
However, the 10 EMA should remain below the 20 EMA.
The bearish process is:
Daily Bearish Context
↓
Hourly Bearish Impulse
↓
Price Retraces Higher
↓
10 EMA Remains Below 20 EMA
↓
Optimal Trade Entry
↓
Short Position
Once the 10 EMA crosses above the 20 EMA, the bearish setup is filtered out.
The trader waits until the market becomes aligned again.
The Moving Average Filter Is Designed to Make You Miss Trades
This is an important point.
A good filter will sometimes prevent you from taking profitable trades.
There will be situations where price creates a technically attractive OTE but the moving average conditions do not qualify.
The trader skips the setup.
Price may still move in the expected direction.
That does not mean the filter failed.
The objective is not to participate in every market movement.
The objective is to create a repeatable swing trading framework.
Huddleston repeatedly demonstrates situations where the filter removes a setup.
The mindset should be:
No Qualification → No Swing Trade
Missing a move is acceptable.
Taking every possible setup is not required.
Wait for the Market to Show Willingness to Move
After leaving consolidation, the trader wants to see price demonstrate directional intent.
This means price should begin moving away from the previous range.
In bullish conditions, price should show a willingness to run higher.
In bearish conditions, price should show a willingness to run lower.
The trader should not simply enter because two moving averages have crossed.
The crossover creates context.
Price action provides confirmation that the market is willing to expand.
A stronger process is:
Consolidation → Break → Momentum Stacking → Impulse → Retracement → OTE
This is much more selective than:
EMA Cross → Enter Trade
Take Partial Profits on Swing Trades
Trade management is one of the most important Secrets To Swing Trading.
Huddleston recommends taking partial profits while leaving a portion of the position available for continued expansion.
For example, a swing trader may take approximately half of the position off at a reasonable objective.
The remaining position can continue with the larger directional move.
The logic is:
Enter Swing Trade → Reach Objective → Take Partial Profit → Hold Remaining Position
This allows the trader to realise profit while still participating in a potentially large swing.
Swing trading is designed to capture larger price movement.
Closing the entire position at the first short-term objective may prevent the trader from benefiting from the full directional expansion.
Do Not Aggressively Trail Your Stop Loss
According to Huddleston:
“Swing trading, you do not want to aggressively trail your stop.”
This is an important difference between swing trading and short-term trade management.
A swing position needs room to develop.
Price may retrace.
Consolidation may form.
Short-term volatility may appear inside the broader directional move.
If the stop loss is aggressively trailed behind every small candle or minor swing, the trader may be stopped out before the expected expansion continues.
The objective is to manage risk while still allowing the trade to behave like a swing trade.
When Should You Begin Trailing the Stop?
Huddleston provides a practical idea for stop management.
When price enters consolidation, the trader does not immediately move the stop.
The trader waits for price to demonstrate a willingness to leave the consolidation in the expected direction.
For example, in a bullish swing:
Price moves higher.
A consolidation develops.
The trader holds the position.
Price breaks away from the consolidation and resumes higher.
The trader can now consider moving the protective stop behind meaningful swing lows.
The bullish process becomes:
Long Position → Consolidation → Price Leaves Consolidation Higher → Trail Behind Relevant Swing Lows
For bearish positions:
Short Position → Consolidation → Price Leaves Consolidation Lower → Trail Behind Relevant Swing Highs
The market must first prove that it is continuing the directional move.
Add to Swing Positions When New Setups Form
A strong directional environment can produce multiple Optimal Trade Entry setups.
The trader may already have a position from an earlier entry.
A new bullish OTE develops inside a bullish daily environment.
The trader may consider adding another position.
The process is sometimes called pyramiding or position building.
For example:
Original Long → Partial Profit → Hold Remainder → New Bullish OTE → Add Position
This allows the trader to build exposure during a strong trend.
However, the same directional filters should still apply.
Do not add simply because the original trade is profitable.
Every additional entry should qualify as a legitimate setup.
Swing Trading Is About Holding for the Broader Move
A swing trader has a different objective from a day trader.
A day trader may focus on a single session objective.
Once price reaches the target, most of the position may be closed.
A swing trader is attempting to participate in a broader daily momentum move.
Huddleston contrasts the two approaches.
For a day trade, a trader may remove approximately 75% to 80% of the position at the first important objective and leave a smaller remainder.
For a swing trade, the trader may take approximately 50% off and allow a larger portion of the position to continue.
The exact percentage is less important than understanding the principle.
Day Trade → Capture Short-Term Move
Swing Trade → Maintain Exposure to Larger Directional Expansion
Can You Day Trade Against the Swing Bias?
An interesting point in the ICT framework is that a bearish swing trading environment does not mean price can never move higher.
Counter-trend day trades may still exist.
Suppose the daily swing condition is bearish.
The swing trader is only looking for OTE short setups.
However, price may form a short-term bullish setup with obvious buy-side liquidity above.
A day trader may potentially trade the move higher toward that liquidity.
That does not change the bearish swing trading framework.
The trader simply understands the difference between:
Swing Trade Direction
and
Short-Term Day Trade Opportunity
For swing positions, stay aligned with the daily momentum filter.
For short-term trading, separate analysis and objectives may apply.
Common Swing Trading Mistakes
Trying to Trade Every Day
Swing setups are not designed to form daily.
Wait for the correct environment.
Using Moving Average Crossovers as Entry Signals
The 10 and 20 EMA provide context.
The entry comes from price action and the Optimal Trade Entry framework.
Applying the System to Very Low Timeframes
The primary momentum condition is established on the daily chart.
The hourly chart is used for the swing setup.
Ignoring Consolidation
Price leaving consolidation can provide important evidence of directional willingness.
Taking Every Fibonacci Retracement
An OTE without the correct higher-timeframe context should be filtered.
Closing the Entire Position Too Early
Swing trading requires allowing a portion of the position to participate in larger expansion.
Trailing Stops Too Aggressively
Give the swing trade enough room to develop.
A Simple ICT Swing Trading Model
The complete bullish model can be summarised as:
Daily Consolidation
↓
Bullish Break in Price
↓
10 EMA Crosses Above 20 EMA
↓
Both EMAs Stack Higher
↓
Move to 1-Hour Chart
↓
Wait for Bullish Impulse
↓
Retracement Into ICT Optimal Trade Entry
↓
10 EMA Remains Above 20 EMA
↓
Enter Long
↓
Take Partial Profit
↓
Hold Remainder for Larger Expansion
For bearish conditions:
Daily Consolidation
↓
Bearish Break in Price
↓
10 EMA Crosses Below 20 EMA
↓
Both EMAs Stack Lower
↓
Move to 1-Hour Chart
↓
Wait for Bearish Impulse
↓
Retracement Into ICT Optimal Trade Entry
↓
10 EMA Remains Below 20 EMA
↓
Enter Short
↓
Take Partial Profit
↓
Hold Remainder for Larger Expansion
ICT Swing Trading Checklist
Before taking a swing trade, ask:
What is the daily momentum condition?
Is the 10 EMA above or below the 20 EMA?
Are the moving averages stacking?
Has price shown willingness to leave consolidation?
Am I trading on the correct side of the daily momentum?
Has an impulse leg formed on the 1-hour chart?
Has price retraced into an Optimal Trade Entry?
Has the hourly moving average structure remained valid?
Where is my stop loss?
Where will I take partial profits?
What portion will I leave for the larger swing?
When will I consider trailing my stop?
If the conditions are incomplete, the trader waits.
Final Thoughts on Secrets To Swing Trading
The most important Secrets To Swing Trading are patience, directional filtering, and selective execution.
You do not need to correctly predict the daily bias every trading day.
You do not need a swing setup every session.
You do not need to participate in every market move.
The ICT swing trading approach taught by Michael J. Huddleston focuses on identifying the periods when the market is clearly weighted in one direction.
The trader uses the daily chart to frame momentum.
The 10 and 20 period exponential moving averages provide a simple directional filter.
The hourly chart is used to identify impulse legs and ICT Optimal Trade Entry retracements.
The complete framework is:
Daily Momentum → EMA Stacking → Hourly Impulse → Optimal Trade Entry → Partial Profits → Hold for Expansion
The real secret is not trading more.
It is learning when conditions are strong enough to justify waiting for a swing trade and then allowing that trade enough time to deliver its larger directional move.
