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What are the best indicators for swing trading?

Adam Morrison


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Hi, thank you for your question! 

Basic indicators which swing traders are looking for are swing lows and swing highs, which actually show how high and the low stock went in the past. Once these are marked on the chart, the swing trading gets much easier. 

In order to identify these levels, traders use the following indicators:

Moving averages (MAs) - which take all the data in the specific time frame and come up with the number which represents the average over a set time period.
Volume - shows the amount that is traded
Relative strength index (RSI) - indicates if a single stock is being overbought or oversold recently, and according to this indicates if a swing is nearby.
The Stochastic oscillator - the stochastic oscillator is another form of momentum indicator, working similarly to the RSI. It compares the closing price of a market to the range of its prices over a given period.

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Hello Adam,

There are literally thousands of different indicators that swing traders can use. However, I have found the best strategy is a simple one that can be easily followed.

I personally follow the Morpheus swing trading strategy (https://morpheustrading.com/best-swing-trading-strategy) because it is based primarily on relative strength and volume, while using moving averages and prior lows/highs for support and resistance levels.

It works pretty well for me, but a trading strategy is only as effective if you can be disciplined to follow it closely, without fail.

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