Indicators are used to identify trends in all markets and are an extremely popular way, especially for beginners, to identify trends. Two common indicators used to identify trends are:
- Moving Averages – The most common moving averages used to identify trends are the 150 day and 200 day simple moving average.
- Relative Strength Indicator – The Relative Strength Indicator is a momentum indicator and is a popular indicator used to identify trends.
Regardless of which trend indicator you use to identify the trend, trend identification is a core component of swing trading and is a crucial step that must be completed before placing any trade.
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