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swing trading

Pivot Point Trend

Another less popular method of identifying the trend is through the use of the pivot point.  A pivot point is a level that is considered to be of importance and is used by many technical traders.  A pivot point is calculated as an average of the high, low, close from the previous timeframe of the [...]

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Relative Strength Indicator Trend

The relative strength indicator (RSI) is a momentum based indicator.  However, this indicator can still be used to identify the trend of any market by using the middle 50 line.
RSI can be used to identify the trend of a market by it’s relation to the middle 50 line.  When the RSI is above the middle [...]

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Price Action Trend

If indicators aren’t your style, the other most commonly used way of identifying a trend is through price action (price action trend identification).  The use of price action is one of the oldest and considered by many the most reliable method of identifying trends in any market.
During an uptrend, price will make higher highs and [...]

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Trend Indicators

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 [...]

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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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Doji

The final and last kind of Japanese candlestick formation is the doji or sometimes called doji star.  Dojis fall into a group all of their own and offer the least more powerful confirmation of a potential change in trend.  They can be used at both tops and bottoms of price swings. They typically consist of [...]

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Bearish Engulfing Pattern

Like bullish engulfing patterns, bearish engulfing patterns fall into what is possibly the third most powerful kind of Japanese candlestick patterns.  Again, these patterns offer less confirmation of a potential change in trend and should be used with caution.  They typically have the following characteristics:

Their real body must engulf the previous candles real body.
The real [...]

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Bullish Engulfing Pattern

The third kind of Japanese candlestick formations are bullish engulfing patterns.  These patterns offer much less strength than the pin bar, hanging man and inverted hammer, but they can still offer some insight into potential future market movement.   Typically have the following characteristics:

Their real body must engulf the previous candles real body.
The real body should [...]

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