The Best Swing Trading Indicators can help you improve your stock trading returns. So in this blog post I’ll share some of my favourite swing trading indicators, and how I use them to try and time my buying and selling of shares in the stock market. Sound good?
Keep in mind, swing trading indicators (even the best ones) should be used in conjunction with other types of analysis. Additionally, each swing trading indicator has pros and cons. Some work better in trending markets and others work well during consolidation. So…
Just remember when you’re browsing the list of the best swing trading indicators below that you need to keep the big picture in mind.
Best Swing Trading Indicators:
Moving Averages – In a trending market, moving averages are the best swing trading indicators. They clearly demonstrate the price momentum of your stock, over short, intermediate and long-term time frames. The slope of the moving averages can better help you understand the strength of the trend. If you want to learn more about moving averages, read this post about how to use moving averages to trend-trade.
Trend Lines – You might call trend lines the most basic swing trading indicators. But with simplicity comes power. You can draw trend lines over both long and short term time frames to help you identify the controlling technical pattern. Thus, trend lines can help you get perspective on the market and understand high probability places to initiate swing trades. While trend lines might sound like a simple swing trading indicators. Stockcharts.com gives great insight into the best way to draw trend lines.
Bollinger Bands – During both consolidation and big price trends, Bollinger bands are useful indicators for swing traders. Bollinger bands can foretell a large move during consolidation. And Bollinger bands are a swing trading indicator that can also hep you understand when stocks are overbought and oversold. Read this blog post to learn more about how to ring the register with Bollinger bands.
Relative Strength Index (RSI) – This relatively easy to use swing trading indicator can help you understand how overbought or oversold your stock is. It can also give insight into the bearish or bullish momentum your stock has. I personally don’t use RSI as much as the above indicators, but a lot of traders reference it, as well as MACD. My favourite example of how to use RSI is this Chessnwine blog post.
There are a ton of swing trading indicators, but the above are some of the best!
And in addition to the above trading indicators I always look at volume patterns. Finally, you should know I exclusively use swing trading indicators and techniques on long term investment ideas that meet my fundamental investment criteria. All this helps gives me more conviction in my stock ideas. But enough about me.
I encourage you to experiment with these swing trading indicators and any other momentum measuring techniques that might catch your curiosity. And now that you’ve heard from me, I want to ask you… what do you think are the best swing trading indicators?
And By the Way: If you’re looking for more swing trading techniques to improve your stock market profits, sign up for my newsletter below. You’ll get access to my favorite tips and resources to improve your portfolio returns.