Are you looking for the best swing trading indicators? There are a wide variety of indicators that swing traders can implement into their trading. However, there are only a few indicators that the top banks and market traders use in their trading. These are moving averages and momentum based indicators.
Moving averages are widely used by banks and other corporate players. While there are many different kinds of moving averages available, surprisingly the main players still use simple moving averages. The most popular simple moving average is the 150 day and 200 day. Why is this time frame so popular? The 150 and 200 day simple moving average are often used to show the main trend. With price above, the trend is up, with price below, the trend is down.
Momentum based indicators are also a popular amongst professional traders. The two most popular momentum based indicators are Relative Strength Index (RSI) and Stochastics. These indicators measure the momentum or speed of price change in the market and can show areas where price may potentially be overbought or oversold. When momentum drops, but price continues down, traders may start to tighten their stoplosses as they know a pullback in price may be coming.
While the above swing trading indicators are by no means complex, this doesn't stop the largest banks and deepest pockets in the world from using them to trade. Professional traders use these indicators to swing trade successfully and manage to earn billions each year from the stock and forex markets.
Article Source: http://www.articlesbase.com/currency-trading-articles/trading-indicators-whats-the-best-indicators-for-swing-trading-1052056.html
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