Estadosecidades.com – Swing trading is one of the strategies in stock trading that rely on the trends in stock price movements. players swing trading this very trend to rely on, because for them the trend is Your friend. So it can be taken the conclusion is the trend this is the key factor of trading stocks a swing.
With the trend, then they can see where the price will move, and what they should do can be planned with caution. There are many trading strategies, including the indicators used for this strategy. But in This article, there are only 3 indicators used, and this is already powerful enough to create cuan In stock.
But You must remember that no matter how good Your strategy, will not succeed if psychology is not ripe, for that flying hours be the key to Your success using this strategy.
Indicators Swing Trading On Stock
There are many indicators in trading, set up any trader, but for traders who are long in the world persahaman, usually they will use the most simple and not confusing.
No matter if You use a lot of indicators with a mixture of leading and lagging behind, such as stochastic with the MACD or the other. There are also traders who only look at the Price Action Without Indicators that stick on the chart.
On the other hand, there are also just added MA200 as a tool to see the trend of a stock. Because as we all know, the stock moved above the MA200 is a stock that is in the stage of uptred in the long term.
Well, on this occasion I only mention the 3 indicators are considered good enough to help Your trading activities in the future. Because basically all the technical indicators are modern, is basically the price action and volume.
So for those of you that only using Price Action with a combination of volume, of course, not a problem, even for my simple, it’s sometimes more powerful because it is more pure than the movement of the stock price itself.
Okay, we only discuss the 3 indicators of exchange, usually moving average (MA), MACD, and a combination of price and Volume.
1. Moving Average (Ma)
Moving average can be considered as an indicator of the beginning of all technical indicators of the other modern. Basically just using the average price in a couple of days ago, so that it will produce the average price of the last and can provide information on the trend of the price at a certain price.
Moving average itself there are many variants, the development macem-macem, ranging from simple moving average (SMA), moving average (EMA), to WMA Moving Average.
Three powerful for those who have already mastered how to use it, but for those of you who are not familiar with everything, my advice wear of high school because of the basic and most easily.
How to use it is MA become support and resistance for the candle (the stock price). The following description Easy
If the price is under mother, then I serve as resistance. If MA penetrated by the stock price, the stock has the potential to rise or uptred.
If the price is above the MA, then I serve as a support. If MA penetrated with the stock price, then the stock will go down greater or decrease.
MA own can be arranged according to your needs, and there is no provision should be using how many days or candlestick.
However, the number of commonly used trader in the whole world is MA20, MA50, MA100 and MA200. Which means
- MA20 is the movement of the average price in the 20 Days (wax) last
- MA50 is the average price movement in 50 days (wax) last
- MA100 is the movement of the average price in 100 days (wax) last
- MA200 is the average price movement in 200 days (wax) last
Do nothing if the number of her mother’s change in addition to the figures at the top? The answer is no, all flexible according to the needs and desires of you.
Want to wear MA11, MA26, MA60, MA150 is not a problem. Because all restored to each merchant, and every trader has their own rules.
In this discussion, I was only using two main indicators, namely the MA20 and MA50. There is no particular reason why the numbers I use, only I love and fit just using the second mother is, that’s all.
A discussion of the details are in the bottom of right away with the chart of the stock options.A discussion of the details are in the bottom of right away with the chart of the stock options.
MACD or moving Average convergence is an update of the MA. So basically the MACD is a descendant of MA, because it was built based on the mother’s own.
The difference is that the MACD can detect the tendency of the existence of the reversal of the direction or trend. So you as a trader can make preparations if the trend is changing and the opportunity arises for you to trade.
MACD simple is more suitable to be konfirmator of a trend that is formed pad afase the beginning.
For example, the share price has broken MA20 accompanied with enough volume, but the MACD does not immediately able to confirm whether a trend can last long enough or not.
Then usually after a few candles formed then the MACD new confirm it by forming the signal Goldencross which shows that the trend has been confirmed and have a chance to survive for quite a long time.
The problem is the MACD is very slow, even more interesting than Manya own. So You are strongly advised not only to use MACD to perform technical analysis, he should be there are other indicators to confirm with.