STOCK

TRADI
NG

Whatar
esome
GoodIndicat
orsFor
Swingtr
ading?
Fr
om Team
Ni
ft
y50&St
ocks
2021Ni
ft
y50&St
ocks
Pr
eface
Today’
sst
ockmarketi
sov
erwhel
medwi tht
onsofindicat
orsforswi
ngtr
adi
ng,
andi
nter
est
ingl
y
onl
ytensoft
hem s
howpos i
ti
ver
esul
tsandbenefitinv
es t
ors,
greatl
y.

Taki
ngt hematt
erinconcer
nI haveconduct
edextens
iveresear
chandbroughtout3bes t
I
ndicatorsf
orswingtr
adealongwiththi
sIhaveals
omentionedhowt ousethesei
ndicat
ors
accuratel
ytogr
abmuchpr ofitfrom t
hemarket?andmoreimportant
lywhichonetochoose?

Bef
orewes
tar
tlet
’
ssee,
 Whati
sswi
ngTr
adi
ngandHow doesi
tWor
k?
Swi
ngtradi
ngisat
ypeoftr
adi
ngconcept
,whi
chtargetst
obuyst
ock
s(oranyot
herfinanci
al
i
nst
rument)whent
heyarei
nlowsandsel
limmediat
elywhent
heyar
ehigh.

How ToReadAndI
nter
pretTheMovi
ngAver
age?

Movi
ngav
eragei
ndi
cat
ori
nonanychar
tisgener
all
yconf
usi
ng,
atl
eas
tforl
aymen.

ButhereI
am goi
ngtomakeiteasi
erf
oryout
ounders
tandmovingav
eragei
ndi
cat
orsandat
thesameti
mewill
sugges
tyous omeoft
hebests
wingIndi
cat
ors.
Her
eWeGo:
-

Whatdowemeanbymovi
ngav
erageandi
nwhatwaydoesi
twor
k?

Movi
ngaver
ageindi
cat
orgener
all
yisus
edt
ocal
cul
atet
heav
eragepr
iceov
ert
hes
peci
fiedor
gi
veper
iodoft
ime.

Forinst
ance,1
0peri
odmovingaver
age,50per
iodmovi
ngav
eragecal
cul
atet
heav
eragepr
ice
overthelas
t10and50candl
es,r
espect
ivel
yet
c.

I
funder1
0-peri
odmovingav
erage,l
ast10candl
esarel
argel
ymovi
nghi
gher
,thenaut
omat
ical
l
y
movi
ngaveragewoul
dhavehighval
ue,vi
ceversa.

So,
ingeneral
ter
msmovi ngaver
ageindi
cat
orwork
sormov
esi
naccor
dancewi
tht
hepr
icet
rend
asi
fiti
sdi
rect
lypropor
ti
onalt
opricemovement
.

Now how canyour

Wel
l
,fort
hatyouhavet
olooki
nto2f
act
s:

1
.Lengt
hOfTheMovi
ngAver
age
Weal r
eadyknowt hatmovingaver
agecanhav evaryingwor kingperiod(egof10and50per i
od)
,
thi
smeansmovi ngindicat
orcanhoweverfuncti
ontoi denti
fyv ar
yingtr
endsi.
ebeitshort
(f
orthi
sy oucanus e10per i
osmovingaver
age) medium ( f
orthis50per i
odmovingav er
age)
orlongterm( f
orthis200periodmovingaverage),
movi ngav eragecanwor ki
nall
s uchtrends
ofti
meper iod.

2.
Timef
rameoft
hemovi
ngaver
age
I
tmustbenot
edthat10per
iodmovi
ngaver
agei
n1hourt
imef
ramei
squi
tedi
ff
erentf
rom 1
0
per
iodmovi
ngav
er agei
ndail
yti
mef
rame.

So,whenev
ery
our
eadanymovi
ngav
eragej
ustr
ememberi
t’
srel
atedt
othet
imef
ramey
ou
areint
o.

Eg.A200 per
iodmovi
ngaver
agewheni
n15minut
est
imef
rame,
theni
tmeanswear
elooki
ng
atl
ongter
mt r
endint
heti
mefr
ameof15mi
nut
es.
Now,
comi
ngbackt
ospeci
fical
l
yonSwi
ngI
ndi
cat
ors
.
So,weneedt hosei
nstr
ument swhichcanservethispur
poseofswingt
radi
ngi
.
ethese
i
ns t
rumenti
ndicat
orsmus tef
ficient
lyhel
pinv
es t
orsinbuyi
ngstock
sinl
owsandinsel
l
ing
them whentheygohigh,andthatal
s oi
nthesi
mpl estway.

Her
ear
esomedet
ermi
nant t“
sofbes s
wingt
radi
ngi
ndi
cat
ors”

Letmej
ustmenti
onwhatar
ethebasi
sbas
edonwhichweregar
das wi
ngt
radi
ngi
ndi
cat
or
asagoodindi
cat
or,
sot
hatthi
sar
ti
cl
ebecomesr
ati
onal
andnotvague.

AnI
ndi
cat
ors
houl
dbes
impl
eandeas
ytounder
stand

Since,
indicator
saretoolsthatar
eusedt
oreducecompl exi
ti
esinvol
vedinf
uncti
oningof
swingtrading,sot
heys houldbeass
impleasposs
ible,s
ot hatyoudon’
thavetospend
muchofy ourt i
meinunder st
andi
ngthei
nstr
ument,i
tsel
f.So,i
tshoul
dbeeas yandsimpl
e
tounderstandthetool.

Makess
ens
e?

I
ndi
cat
orsShoul
dbeMul
ti
pur
pos
e

Burdeni
ngyourchartwi t
hmul t
ipl
eindi
cator
s,doesnotincr
easey ourprobabil
i
tyi
nwinning
thetr
ade,i
nst
eadbur deny ourt
as k.
So,it
’
sbett
ertoholdfewindicatorsonyourchar
t,
andthesei
ndicat
orss houl
ds ervemult
ipl
epurpose,
hencei nv
olvinglesseff
ort
sandy i
el
ding
bestout
puts.
Thes
eindi
cat
orss
houl
dsi
ngl
ehandedl
y

Det
ermi
neent
ri
es

Det
ermi
nehowt
otak
epr
ofit
s

Det
ermi
nes
topl
oss

Thi
swil
lhel
pyourchar
tlookcl
ean,whi
chint
urnwouldincr
eas
ethepaceandef
fici
encyof
deci
si
onmaking,
hencemakingyourtr
ademuchprofitabl
eandsat
isf
act
ory
.

I
ndi
cat
orsmus
tbef
reeandeas
ytoacces
s

I
ndicatorscanprovetobegoodev enifi
t’
sfr
ee.
Yes,y
oucaneasi
l
yacces
sfreei
ndi
cator
s
avai
lableonwebs it
esl
ikeTradi
ngview.
Toyours urpr
iseyoudon’tneedtospendebenapennyf
ort
hat,
butsomedatas
urel
y.

I
thi
nkyoumus
tbes
uperexi
tedbyNow,
Let
’smovet
oSwi
ngTr
adi
ngi
ndi
cat
ors:
I
ndicat
or-1
Donchi
anChannel
Thi
snamemays oundcomplex,
butt
hisi
ndicat
ori
stoosi
mpl
etounder
stand.Thi
sIndi
cat
or
poi
ntsouthi
ghandlowsi
nyourchar
t,i
ntheperi
odofwhi
chyouwantt
oknowabout .

Fori
nstance,
youwanttoknowabouthi
ghes
thi
ghandl
owes
tlowoft
hes
tock
sov
erl
ast60
days
,itwil
lbesomet
hingl
iket
his
:

USDCHFDai
l
yTi
mef
rame

Now,l
et’
sdiv
eintot
hechar
t.Youwouldt
akenoti
met
ofindout,wher
eexactl
yyoucan
pot
enti
al
lybuyandsel
l
,asi
tisexpl
i
cit
lyi
ndi
cat
edbyt
hisi
ndi
cat
oronthechart
.

I
ns i
mplewordsy
oucanref
ertol
owerchannel
tobuyands
ubs
equent
lyr
efert
ohi
gher
channel
toknowwhentosel
l.
CHFJPYDai
l
yTi
mef
rame

Iam s
urey
ouwouldn’
tbesati
sfiedwit
hthi
sandwoul
ds t
il
lwantt
ouset
radi
ngi
ndicat
orss
uch
as200MAtogetanassur
ancethaty
ouaretr
adi
ngontheri
ghtsi
deoft
hetr
end.

So,
thati
fthepr
ices
urgebey
ond200MA,
youwoul
dbewi
l
li
ngt
obuyal
ongt
hel
owerchannel
.

GBPJPYDai
l
yTi
mef
rame
Si
mil
arl
y,i
fthepr
icepl
ummetbel
ow200MAy
ouwoul
dbewi
l
li
ngt
osel
lal
ongt
heupperchannel
.

Br
entCr
udeOi
l4-
hourTi
mef
rame

Now,youwoul
dbeshockt
oknowaboutmy2ndSwi
ngtr
adi
ngIndi
cat
or,
ast
hisr
arei
ndi
cat
or
canbeusedeveni
nti
meswhenswi
ngtradi
ngt
hel
owert
imef
rame.
I
ndi
cat
or-2
OHL
CMethod
OHL
CisOpen,
High,
LowandCl
ose.
Howdoest
hisi
ndi
cat
orf
unct
ions
?
Thi
sindi
cat
orcons
ider
shi
ghsandl
owsofdai
l
ycandl
e(changes
),nomat
terwhatt
imef
rame
i
schosen.
Her
eyoucanvi
sual
i
zemywor
ds:
EURCHFDai
l
yTi
mef
rame

EURCHF1
-hourTi
mef
rame
Howt
ous
ethi
sindi
cat
orwhi
l
eyouar
etr
adi
ng?
Whenpri
ceturnsbeari
sh,f
rom l
astday
’shi
ghs,youcaneasi
lywit
hthehel
poft
hisi
ndi
cat
orgo
shor
tandhuntforpr
ofitbefor
ethesepri
cesreachprevi
ousday’
slows.
AUDCHF1
-hourTi
mef
rame

Now,
youmus
thav
eencount
eredaquer
y,whyt
ous
edai
l
yhi
ghsandl
ows
?
Thereasoni
sthatsomemar
ket
shaveatendencyt
oregist
errev
ersehi
ghandl
owsfrom t
heir
dai
lyhi
ghsandlowsandatt
hesameti
mes omeothercont
inuetot
rendbey
ondthei
rregi
st
ered
nor
mal hi
ghsandlows.
I
ndicat
or-3
Zi
gZagMethod
Ar
eyouapr
iceact
iont
rader
?
I
fyest
hen,
youwoul
ddefini
tel
ylov
ezi
gzagi
ndi
cat
or.
I
tisknowntoal
lthatasapr
iceact
iont
rader
,howi
mpor
tanti
ti
sforonet
odet
ermi
net
hes
truct
ure
ofthemark
et,i
sn’
tit
?
Nowtoyoursurpri
set
hisindi
catordoest
hatworkf
ory
ou,
yesy
our
eadi
tri
ght
,zi
gzagi
ndi
cat
or
i
nst
ant
lydoesthiswor
kf orpr
iceacti
ontr
ader.
USDJPYDai
l
yTi
mef
rame

I
am s
oimpr
ess
edbyt
hisi
ndi
cat
orandI
am s
urey
oul
ovedi
ttoo.
Thi
sindi
cat
orl
eav
esnor
oom f
oranyki
ndofs
ubj
ect
ivi
ty
.
Andnowonderwhat
,wi
ththi
sindicatoryouwill
beabl
etomakesi
mpleobject
ivedeci
si
onss
uch
asatwhi
chpoi
nty
oushoul
dpot enti
al
lyexitandals
owheret
oent
eryourt
rades!
Her
eist
hechar
texpr
ess
ingt
hemat
ter
UST-
Not
edai
l
yTi
mef
rame

Nevert
hel
ess,yous houl
dnotcompl
etel
yrel
yont
hisindicat
or,al
wayshaveahabi
tofcr
os s
checki
ng.So,cros
schecktheresul
tsyi
el
dedbyi
ndicatorwithpri
ceacti
on,
asiti
snotaful
l
proofi
ndi
cator.

Her
eint
hischar
t,I
hav
eshownhoweas
il
yyoucancombi
net
hisi
ndi
cat
orwi
thpr
iceact
ion.

CADCHFDai
l
yTi
mef
rame

Aft
eral
lt
heseyoumustbet
hinki
ngt
hatIam j
ustbeat
ingaroundt
hebush.
So,
nowcomi
ngt
o
t
hemaintheme,what
’
sthebesti
ndi
cat
orforSwingTr
ading,amongal
l
?
 BestI
ndi
cat
orf
orSwi
ngTr
adi
ng
BestIndi
cat
orforyouwoul
dbetheonewhichsui
tsyoubes
t.Yes
,thati
ndi
cat
orwhi
chcompl
ywi
th
youraspi
rat
ions,
needsandwhi
chismostcompati
ble.
Youmus thavenoti
cedthatall
thethr
eeindi
cator
shavecommonbas ei.
e.
,al
lt
hreeachiev
es i
mil
ar
motivei.
e.,
BuyLowandSel lHigh.
Andthus,whatseparat
esthem i
sthemannerinwhichthese
i
ndicatorsachi
evethi
star
get-ofbuyi
nglowsands el
li
nghighs.
So,
whatwaywoul
dyouli
ketogotobuyi
nlowsandsel
li
nhighs,
det
ermi
neswhi
chi
ndi
cat
orwoul
d
bebes
tfory
ou.
Inot
herwords,
youshoul
daskfewques
tionst
oyour
sel
f:

Doest
hisi
ndi
cat
ormak
eanys
ens
etome?
Wi
lli
tbepossi
bletousethi
sindi
catorconsi
st
entl
yinar
ound50to100t
rades
?
Whatev
erIhav
ei ntr
adi
ngatpresent,wil
lt
heindi
cat
orappl
ytoal
l
?

Wasthatbi
genought
ounderstand?
Let
’
sgot hr
oughwhat
everhasbeenwri
t
tenabov
e,i
nshor
t.

Concl
usi
on
Donchai
nchanneli
sthemostsor
tedi
ndi
cat
or,t
hatass
ist
syouini
denti
fyi
ngwher
eist
he
poi
ntyoucanpotent
ial
l
ybuyinl
owsandwherecanyousell
inhi
ghs.
OHL Cindi
catoral
sodoesthetaskofdeterminingexitandentrypoint
s,buttr
adingiddone
i
slowt i
meframes.
ZigZagindi
catori
ndi
catesbestpossi
blepointofs winghighsandlowsatt heti
meoft r
adi
ng
opportuni
ti
es,whi
chisf
ur t
hersubst
anti
atedbypr iceacti
on.
Also,
toreadmovingaverageyoumus tknowt helengthofmovi ngaverageandt het
imefr
ame
youareon.

Wi
thal
lthef
act
sst
atedabove,now i
t’
syoutur
ntomakesel
ect
ionof
besti
ndicat
orforyour
sel
f.