Swing3 Indicator

What is Swing Trading?

• Swing Trading is a style of trading that aims to capture gains in a security within one day to a week, although some trades can last longer.
• Traders use technical analysis to buy weakness and sell strength, patiently waiting for these opportunities to arise.
• 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

• Markets suitable for swing trading tend to trade above and below a baseline price band, portrayed on the chart by a colored band calculated using the Average True Range.
• The baseline strategy involves buying normalcy and selling mania or shorting normalcy and covering depression.
• In the absence of exhaustion patterns, traders go long at the baseline when the stock is heading up and short at the baseline when the stock is on its way down.
• Traders wait for the stock to hit its baseline and confirm its direction before making their moves.
• When a stronger uptrend or downtrend is at play, traders may paradoxically go long when the stock jumps below its baseline or short a stock that has stabbed above the baseline.

Key Features of Swing3 Indicator

• Displays the trend direction at all times.
• A colored price band represents the opportunity baseline.
• Colored dashes represent possible reversal swings.
• Analyzes its own quality and performance.
• Implements a multi-timeframe dashboard.
• Customizable trend and swing periods.
• Implements email, sound, and push alerts.
• Non-repainting or backpainting.

Input Parameters

• Trend period: Controls the sensitivity to trend changes. A big trend period captures longer trends, while a small trend period captures shorter trends but recognizes changes faster.
• Baseline period: Controls the sensitivity of the baseline. It should always be below the trend period. Increase it for a bigger opportunity band and decrease it for a smaller one.
• Display swing signals: Enables arrows when the price retraces to the baseline and breaks out of it.
• Display corrections: Enables colored dashes when the trend starts to correct.
• Display the dashboard: Shows the multi-timeframe dashboard on the chart.
• Display statistics: Shows the stats dashboard on the chart.
• Drawing Settings: Customize colors and sizes for arrows and reversal dashes.
• Alerts: Enable display, email, push, and sound alerts for patterns.

Usage Tips

• Entry should be made when the indicator line is above the 100 level, and the vertical histogram bars are present and of the same color.
• Early entry: Considered if either the vertical histogram bar is green/red but the indicator line is still yellow, or the histogram bar is purple but the indicator line is above 100.
• The optional alert is controlled via an on-chart tick box, and the alert will be raised when the market transitions from flat to trending.
• A bonus spread indicator shows the current spread, which can be configured to change color if the spread has gone too high.

Support and Questions

• For questions or timely support, use the helpdesk or write an email to: [email protected]

Author

• Arturo López Pérez, a private investor and speculator, software engineer, and founder of Point Zero Trading Solutions.

Final Thoughts

• The Swing3 Indicator is a robust tool for traders looking to capitalize on market swings without getting whipsawed. 🎯
• Its comprehensive features and customizable settings make it a versatile addition to any trader's toolkit. 📈