Charts

moving-average
Charts

Moving Averages for Trading The Swings

Choosing a moving average for swing trading can be tricky. Many swing traders prefer using a higher period setting because the higher it is, the later it will be – so the lower it is, the earlier it will be, and vice versa. You can also use a lower period setting to confirm trend changes – but remember, the higher the period, the later it will be. So, you can’t depend solely on a moving average to be successful at swing trading. The best way to use a moving average for swing trading is to follow a trend. Traders can use this indicator to confirm their trades, as it smooths out price fluctuations and incorporates older data. However, the first and most important thing to remember is that past performance is no guarantee of future performance. A better way to determine a trend is to use the longer-term chart. However, if you’re a new trader, you can also use the short-term chart as a guide. In swing trading, a moving average can be a powerful tool, but it must be […]

SwingTrader
indicator
Charts

Indicators for Swing Trading – What’s Best?

There are several indicators that you can use to make money swing trading. A moving average is a popular indicator, and is used to validate the direction of an asset’s price behavior over a specified period of time. The moving average can be created in two basic styles, simple and exponential. Simple moving averages are the easiest to use and provide the most recent statistics. The exponential version gives you more recent data and is best suited for shorter-term investment stocks. The Donchian Channel is probably the most common and straightforward indicator. It helps you identify buy lows and sell highs. Another tool that can help you find a profitable trade is the OHLC indicator. The Zig Zag indicator will help you find swing highs and lows, but it’s best used in conjunction with price action. While all three indicators are helpful, they won’t make your life easy. You must know how to interpret them properly. Another indicator for swing trading is the Relative Strength Index. This indicator is a trend indicator that shows when an asset is overbought or […]

SwingTrader
swing-trading
Charts

So You Want To Swing Trade Stocks?

The first thing you should know about swing trading stocks is that you shouldn’t trade in the middle of the day. If you’re tempted to, you should know that you’re putting yourself at risk. Swing trading stocks are best when they’re at a high point in their uptrend and have a profit target of. You can also use candlesticks to determine trends and patterns and reduce your risk. You should also know how to follow the news in the market. The RSI (relative strength index) is a helpful indicator when swing trading stocks. This tool shows whether a particular security has reached a point of overbought or oversold. When a security crosses over the overbought zone, it is more likely to reverse into a downtrend than to rise again. Therefore, using RSI when swing trading stocks can be very effective. Traders can use this tool to find the best time to enter a position. Another helpful indicator for swing traders is the moving average. The moving average is a graph of the price of a stock over a given period […]

SwingTrader
bull stocks
Charts

Identifying Bullish Stocks – Chart Set Ups for Bulls

Identifying a bullish stock chart involves identifying its key characteristics. Stocks that have a rocket-like trajectory should be avoided because they rarely last longer than a couple of weeks and are inevitably followed by a sharp decline. Bullish stock charts generally show a consistent price trend from the lower left to upper right. Large advances will be peppered with consolidations that work off of extreme overbought conditions. Instead of a rocket, these charts look more like an upward mountain slope. Bull flags form when a stock reaches a high point, breaks through its lower low and then rises again. A bull flag occurs when the stock exceeds the highest high point, which forces shorts to cover and buyers to get off the fence. Once a bull flag forms, the stock starts to rise and forms an uptrend. Similarly, a bear flag is an indicator that a stock is headed for a downward trend. Candlesticks show a day’s worth of price data. Each candlestick shows an opening price, a closing price, a high and a low. The “body” of a candlestick […]

SwingTrader

Charts for Index Trading – The Tool For The Pro’s

A stock index chart is an important tool in a trader’s arsenal. This visual display of historical trends of the US market indexes provides a clear picture of where prices are headed. The charts are updated each Friday evening and are available to members. PRO members have access to complete versions of these charts. Non-PRO members can view data from 1980 until today. Traders can also view historical trendlines to identify support and resistance. The Dow Jones Industrial Average closed below the rising 50-day EMA and has since dropped to a test of the 200-day EMA. It has not reclaimed this support, however, because bearish daily technical indicators are signaling that the support level is not going to hold. The MACD has crossed above its signal line, but remains in negative territory. The RSI has also failed to cross its 50-day EMA and is headed downward. Similarly, slow stochastic has crossed its 50% level into bullish territory, and a break of this resistance level is a good sign of further decline in the index. The DJIA represents nearly one-fourth of […]

SwingTrader

Hard To Argue About the Strength of This Market

After a massive run-up going into this morning’s job number, the market was certainly set up for a selloff, and when the number came out (which was AWFUL), we certainly got a selloff…sort of. The market started the day with a gap, tried to bounce a bit, but then quickly sold off further. That was about it, however, and around 11:15, a bottom was put in for the day and the market rallied strongly from there, finishing well off of its lows. Although the final numbers will show decent sized losses, in my opinion today was a very impressive showing by the bulls. Remember as well that this was in the face of an AWFUL jobs number… I went into the day short two stocks (SOHU and BEXP) and long only one stock. I was stopped out of both shorts by lunchtime and began to go long again in force as I saw setups I liked all over the place. This may be the wrong play as perhaps the market needs to pullback further from here, but given the action […]

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