From the category archives:

Trading Indicators

Stochastic Indicator

The stochastics indicator is similar to the relative strength indicator in that it measures the momentum of the market and can warn as to when a market is perceived to be overbought or oversold.  Any reading above 80 is considered overbought and below 20 is considered oversold.
Swing traders use the stochatic indicator to buy when [...]

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Relative Strength Indicator (RSI)

Relative Strength Index, or RSI, is a favourite amongst many bank traders.  It is a momentum indicator that helps identify the trend and potential overbought and oversold areas in the market.  The indicator’s scale ranges from 0 to 100.  Usually, readings below 30 indicate oversold and readings above 70 indicate overbought.
When the indicator is showing [...]

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Moving Averages

Simple moving averages are perhaps one of the oldest and most widely used swing trading indicators.  Many traders use simple moving averages for trend identification.  The most common for swing trading are the 150 and 200 simple moving average on the daily chart to identify the long term trend.  There are other kinds of moving [...]

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