5 Most Used Indicators by Swing Traders:
A Thread (π§΅)... (1/18)
A Thread (π§΅)... (1/18)
1. Moving Averages: The most simple indicator out there, used by both amateur, as well as experienced #Swingtraders! This indicator takes into account the closing prices of specific periods and Averages them outπ (2/18)
Periods may be categorized into short, medium, or long-term! For example, a 7-day, 50-day, and 200-day #MovingAverage may be consideredπ
(3/18)
(3/18)
Moving Averages are of two types: Simple Moving Average: which take all closing prices with the same weightage, and Exponential Moving Average: which gives more weightage to the prices closer to the present dateπ (4/18)
2. Volume: Swing Traders have to rely on an #indicator that tells them about the strength of a trend. A trend with a High #Volume is supposed to be stronger than one with weak Volume (5/18)
#Traders often consider Volume while analyzing a breakout in the trend. Generally, there is a period of #consolidation, accompanied by low Volume. But the Volume spikes when the breakout occursπ (6/18)
RSI is measured on a scale of 0-100. Usually, when prices are above 70, we consider it as an overbought zone. Conversely, if the RSI dips below 30, we consider it to be in the oversold zoneπ (8/18)
Generally, any stock in the oversold zone has a chance of flipping to an #uptrend, and one which is in the overbought zone has a chance of flipping to a #downtrendπ(9/18)
4. Stochastic Oscillator: Another Momentum Indicator, which comprises of 2 lines, one of which shows the current value of the #Oscillator, and the other shows 3-Day #MovingAverageπ (10/18)
Stochastic Oscillator compares the Closing Price of a Stock to the range of its prices over a specific period π(11/18)
5. Ease of Movement(EOM): A momentum Indicator that indicates the relationship between the rate of change in a stock price with its volumeπ (12/18)
EOM is generally used on daily charts or in higher #timeframes. It is plotted with 0 as the baseline. When it rises above zero, it concludes that the market's price is advancing easily. If there is a further rise in EOM, it signifies the price will advance more easilyπ(13/18)
We have some webinars that reflect more on these indicators: sedg.in (15/18)
1. Abhijit Paul (@alphabhijit) shared his insight on how to use Moving Averages for Intraday Trading: sedg.in (16/18)
2. Learn to Identify Pullbacks and trade them effectively with a combination of #ADX and #RSI with Amit Seth (@MaverickAmit01): sedg.in (17/18)
3. Souradeep Dey's (@Trader_souradep) Masterclass focuses on a Golden Swing Trading Strategy with dynamic stop losses and target setting: sedg.in (18/18)
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