In this video, you will learn about the three indicators that you need for swing trading. Swing trading is a trading style in which trades are entered and held open for a few weeks or even a few months. You do not have to baby sit your open positions. You aim to capture large price movements for maximizing profits.
The first indicator you need is the moving average. You can use three moving averages, 20-period MA, 50-period MA, and the 200-period MA. You can observe large trends using the combination of these moving averages. You can use the moving averages to determine support and resistance.
The next indicator that you need is the RSI indicator. This is an oscillator indicating overbought and oversold conditions.
The third indicator that you need is the visual analysis. It consists of chart patterns like the head and shoulders, double bottom, bullish flag, etc.
The combination of these three indicators gives you a great trading setup. You need to identify the trend using the moving averages, then use the RSI in overbought or oversold zone, and use chart patterns in combination to them. For example, you can trade pullbacks in the direction of the trend, giving you a great risk to reward ratio.