Swing Trading 4.0

Metatrader (MT4/MT5) Indicator

  • Overview

    Swing Trading is the first indicator designed to detect swings in the direction of the trend and possible reversal swings. It uses the baseline swing trading approach, widely described in trading literature. Its winning ratio is around 80%.

    • Profit for market swings without getting whipsawed
    • The indicator displays the trend direction at all times
    • A colored price band represents the opportunity baseline
    • Colored dashes represent possible reversal swings
    • The indicator analyzes its own quality and performance
    • It includes a multi-symbol and multi-timeframe scanner
    • The scanner scans all the instruments in the Market Watch
    • It implements a multi-timeframe dashboard

    The indicator studies several price and time vectors to track the aggregate trend direction and detects situations in which the market is oversold or overbought and ready to correct.

    • Customizable trend and swing periods
    • It implements email/sound/push alerts
    • The indicator is non-repainting

    Enhance your trading activity with the best swing trading indicator, just like our customers have already done.

    A brief introduction

    Swing Trading is a style of trading that attempts to capture gains in a security within one day to a week, although some trades can eventually be kept alive for longer. Swing traders use technical analysis to buy weakness and sell strength, and have the patience to wait for these opportunities to happen, because it makes more sense to buy a security after a wave of selling has occurred rather than getting caught in a sell-off.

    The Opportunity Baseline

    Much research on historical data has proven that markets suitable for swing trading tend to trade above and below a baseline price band, which is portrayed on the chart by a colored band, calculated using the Average True Range.

    The baseline is used by the swing trader, which strategy is buying normalcy and selling mania or shorting normalcy and covering depression. In absence of exhaustion patterns, the swing trader goes long at the baseline when the stock is heading up and short at the baseline when the stock is on its way down.

    Swing traders are not looking to hit the home run with a single trade, they are not concerned about perfect timing to buy a stock exactly at its bottom and sell exactly at its top. In a perfect trading environment, they wait for the stock to hit its baseline and confirm its direction before they make their moves.

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    The story gets more complicated when a stronger uptrend or downtrend is at play on the current or higher timeframe: the trader may paradoxically go long when the stock jumps below its baseline and wait for the stock to go back up in an uptrend, or he may short a stock that has stabbed above the baseline and wait for it to drop if the longer trend is down. To this effect, the indicator displays reversals as colored dashes.

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    Reversals

    Sophisticated traders also profit from reversal swings against the prevailing trend, by looking for exhaustion patterns on the chart (double top, double bottom, head and shoulders, etc).

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    Swing trading is actually one of the best trading styles for the beginning trader to get his or her feet wet, but it still offers significant profit potential for intermediate and advanced traders. Swing traders receive sufficient feedback on their trades after a couple of days to keep them motivated, but their long and short positions of several days are of the duration that does not lead to distraction.

    Swing Trading has several advantages over other trading styles. Most top swing traders spend 20 or 30 minutes at day in front of the computer and nothing else, which is enough to update their positions and find new ones. It is perfect for people holding a day time job, because it offers the greatest amount of return for the least amount of work.

    If you are a novice trader, forget about the nonsense of trading M5 charts and adopt a trend trading or a swing trading approach.

  • Input parameters
    Input parameters

    When loading the indicator to any chart, you will be presented with a set of options as input parameters. Don't despair if you think they are too many, because parameters are grouped into self-explanatory blocks.

    Indicator Settings
    The TrendPeriod parameter controls the price threshold for trend changes: set a higher value to track longer trends. The SwingPeriod parameter represents the size of the opportunity baseline on the chart: increase it to trade using a bigger opportunity band and decrease it to make it smaller. The MaxHistoryBars parameter controls how many past bars are examined to minimize memory usage, and finally, you can enable or disable signals for swings and reversal swings.
    Drawing Settings
    Choose your own colors and sizes for arrows and reversal dashes.
    Alerts
    Enable display/email/push/sound alerts for patterns.
  • ? FAQ
    Should I trade every signal?
    No, you should not. Exhausted trends should be avoided. If a trend is exhausted, you should be trading reversal swings instead of trend swings. Exhaustion patterns to look for are double tops, double bottoms, harmonic patterns, wolfe waves and/or oscillator divergences.
    Which is the best timeframe for Swing Trading?
    The best timeframe for swing trading is daily charts.
    But I want to make money very fast trading small timeframes!
    Then, Swing Trading is not for you.
    Which is the exit strategy?
    The exit strategy is up to you. You can trail the stop-loss using a donchian channel or the price band of the indicator.
    Which are the best settings?
    Default settings are very good. It really doesn't matter if you learn to trade reversal swings.
  • </> Developers

    In order to build your expert advisor, you can read data from the indicator using the iCustom() function as exemplified below. The indicator has one extra buffer which only purpose is to store trading signals as constants: this is the only buffer you need to read from. Copy and paste the code below into your EA, and replace the indicator name of the iCustom() call with your own.

    //---- Step 1: Define constants in your EA
    #define OP_BUY_CORR     2
    #define OP_SELL_CORR    3
    //---- Step 2: Read values from the signal buffer
    int start()
    {
    // Read signal and current trend
    double signal  = iCustom(Symbol(), Period(), "Marketpz-swing-trading", 6, 1);
    double trend   = iCustom(Symbol(), Period(), "Marketpz-swing-trading", 7, 1);
    double trend_1 = iCustom(Symbol(), Period(), "Marketpz-swing-trading", 7, 2);
    // Do something
    if(trend  == OP_BUY && trend_1 != OP_BUY)  { /* Your code for bullish trend change */ }
    if(trend  == OP_SELL && trend_1 != OP_SELL){ /* Your code for bearish trend change */ }
    if(signal == OP_BUY)                       { /* Your code for bullish swing */ }
    if(signal == OP_SELL)                      { /* Your code for bearish swing */ }
    if(signal == OP_BUY_CORR)                  { /* Your code for bullish correction */ }
    if(signal == OP_SELL_CORR)                 { /* Your code for bearish correction */ }
    if(signal == EMPTY_VALUE)                  { /* Your code if no signal */}
    // Exit
    return(0);
    }

Screenshots

Swing Trading Indicator for Metatrader
Swing Trading Indicator for Metatrader
Swing Trading Indicator for Metatrader
Swing Trading Indicator for Metatrader
Swing Trading Indicator for Metatrader
Swing Trading Indicator for Metatrader
Swing Trading Indicator for Metatrader
Swing Trading Indicator for Metatrader
Swing Trading Indicator for Metatrader
Swing Trading Indicator for Metatrader
Swing Trading Indicator for Metatrader

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