Thread by @elearnmarkets

5 Most Used Indicators by Swing Traders:

A Thread (🧵)... (1/18)

1. Moving Averages: The most simple indicator out there, used by both amateur, as well as experienced #Swingtraders! This indicator takes into account the closing prices of specific periods and Averages them out👇 (2/18)

Periods may be categorized into short, medium, or long-term! For example, a 7-day, 50-day, and 200-day #MovingAverage may be considered👇
(3/18)

Moving Averages are of two types: Simple Moving Average: which take all closing prices with the same weightage, and Exponential Moving Average: which gives more weightage to the prices closer to the present date👇 (4/18)

2. Volume: Swing Traders have to rely on an #indicator that tells them about the strength of a trend. A trend with a High #Volume is supposed to be stronger than one with weak Volume (5/18)

#Traders often consider Volume while analyzing a breakout in the trend. Generally, there is a period of #consolidation, accompanied by low Volume. But the Volume spikes when the breakout occurs👇 (6/18)

3. Relative Strength Index: RSI is arguably the most famous #Momentum Indicator. The role of #RSI is to show whether a #Stock is in the overbought or an oversold zone (7/18)

RSI is measured on a scale of 0-100. Usually, when prices are above 70, we consider it as an overbought zone. Conversely, if the RSI dips below 30, we consider it to be in the oversold zone👇 (8/18)

Generally, any stock in the oversold zone has a chance of flipping to an #uptrend, and one which is in the overbought zone has a chance of flipping to a #downtrend👇(9/18)

4. Stochastic Oscillator: Another Momentum Indicator, which comprises of 2 lines, one of which shows the current value of the #Oscillator, and the other shows 3-Day #MovingAverage👇 (10/18)

Stochastic Oscillator compares the Closing Price of a Stock to the range of its prices over a specific period 👇(11/18)

5. Ease of Movement(EOM): A momentum Indicator that indicates the relationship between the rate of change in a stock price with its volume👇 (12/18)

EOM is generally used on daily charts or in higher #timeframes. It is plotted with 0 as the baseline. When it rises above zero, it concludes that the market's price is advancing easily. If there is a further rise in EOM, it signifies the price will advance more easily👇(13/18)

To read the entire blog, click here: sedg.in/wxreufq9

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We have some webinars that reflect more on these indicators: sedg.in/qtc1bhe2 (15/18)

1. Abhijit Paul (@alphabhijit) shared his insight on how to use Moving Averages for Intraday Trading: sedg.in/kqza7wes (16/18)

2. Learn to Identify Pullbacks and trade them effectively with a combination of #ADX and #RSI with Amit Seth (@MaverickAmit01): sedg.in/cxnypke5 (17/18)

3. Souradeep Dey's (@Trader_souradep) Masterclass focuses on a Golden Swing Trading Strategy with dynamic stop losses and target setting: sedg.in/czkjqna9 (18/18)