For a swing trader, what are the best technical indicators one can use for a profitable trading?

                 Paul from Swingtown


Paul, if your definition of a “swing trader” is a trader who is in and out of a trade in one to four days, then I have some indicators for you. I don’t know if they are the best for you because I have no idea how you trade, but they are solid indicators for short-term trading.


Of all the indicators in my playbook, this is number one. I look for strong volume, trending in the direction of my potential trade. If the volume is lower (or higher depending) than the 10-day average, or up and down like a yo-yo, I dismiss the trade. Remember, light volume is subject to extreme volatility as one big trade can change the course of history for a market, and there goes your trade.

Moving Averages

The 10-day moving averages help me define the “true” market price of my trade, when I am ready to trade. I believe this average gives the most accurate price picture, and it tells me if the trend is in my direction. Longer moving averages work, but not as well. Remember, the trade is 1-4 days.  


These little guys help define entry and exit points, as well as buying or selling strength. My goal is to get in to a market close to the lowest low (or highest high) of the previous day, and to get into a market with big, fat candles showing up the previous day or the morning of the trade.


It helps to know how much buying and selling is really going on in a market. This indicator tells me whether a market is overbought or oversold. As well, I can detect momentum and directional movement with this indicator.

The above is just informational, and in no way reflects my complete strategic approach to trading, but it might give you an idea of where you might want to go.

Trade in the day; invest in your life …

Trader Ed