Swing Trade Blog - The Best Swing Trading Indicators and Oscillators
Swing Trade Blog
One question I get asked a lot is "What are the best indicators for Swing Trading?" My answer is always the same. It really depends on the beliefs you have about the market and the system you have designed to trade those beliefs. Swing Trade Blog
I usually get a confused look followed by a slight moment of silence. I then go on to say that the best indicators for ME might not be the best for THEM.
This gives me a great opportunity to teach people who are interested in Swing Trading about some of the core principals needed to become successful. But rather than making this article about "Trading your beliefs" I will stick to the topic at hand. But instead of answering the "what are the BEST swing trading indicators?" question I will tell you about some of the most popular indicators used in swing trading. That way you can determine which swing trading indicators are the best for you (and your belief system!)
For simplicity I will use the general term "indicator" for this article instead of specifically stating whether the method is an actual indicator or oscillator. I would say that for identifying "trending" stocks or ETF's that the most popular indicators would be moving averages, the ADX, the MACD, and trend lines.
If you are trying to measure volatility then I would say that Bollinger Bands and the ATR or True Range indicators are at the top of the list. For overbought/oversold indicators RSI, ROC and stochastics seems to be the most popular. Remember that indicators and oscillators can be used to generate trading signals (entries and/or exits) or simply as a filter for identifying potential trade setups. Swing Trade Blog
For example we like to look at stocks or ETF's trading above their 50 period moving average for LONG swing trading set ups. We use the 50 period Simple Moving Average as a FILTER and then drill down a little more to see if the trade makes sense to us. This is based on our belief that stocks trading above their 50 period moving average are showing overall relative strength and that there is a good amount of institutional buying interest in these stocks or ETF's.
We also have a trading strategy that uses a specific reading on an overbought/oversold indicator as a trade SIGNAL for entry and exit. We use other indicators as a FILTER but, in this example, we use the indicator reading as the actual SIGNAL.
Another important thing to always consider is the context of the market. You can be using an indicator that is aligned perfectly with your belief system but if the market, sector or individual stock or ETF is in a different context than your indicator you may run into problems. What I mean by this is, for example, using a trend following indicator in a sideways, consolidating market. Or using a overbought/oversold oscillator in a breakout stock that begins to trend.
In these two examples you can quickly see how even the best swing trading indicator or oscillator can lead to poor results if used at inopportune moments. All in all the best swing trading indicators are the ones that make sense to you in the context of the current market environment and allow to trade your beliefs in a profitable manner. Swing Trade Blog
Swing Trade Blog - The Best Swing Trading Indicators and Oscillators
By: Trading Expert Swing Trades Stocks - Watts Trading System For Scalp, Day Or Swing Trading Stocks, Futures Or Forex Get Substantially Cheaper Rates Using A Canadian Online Pharmacy Are You Serious In Finding Helpful Currency Exchange Trading Lessons Online? Your Best Bet To Find A Lost Contact Is The Online Email Address Search Services NBA players who could be deal with trade deadline Order online no prescription needed drugs at No-Prescription-Needed-Drugs.com F1 Betting Odds Valencia - Online Formula One Betting Order Quality and Cheap Eyeglasses Online Can You Make Money Online With Rapid Mass Traffic? To choose the right pair of glasses online Purchase Ralph Lauren glasses online Can Online Investments Create A Project Payday? How to Make Big Money through Online Casino