Month: January 2018

What are the best indicators for swing trading?

Post author By admin
Post date January 30, 2018

Most useful indicators for swing trading

Swing Trading is a type of trading method that can be used to trade in stocks and options for short term. An Intraday Day trading last for just one trading day, but in Swing Trading positions are normally hold for two to six days, but also in some circumstances it can be hold for two weeks too.

In swing trading a traders has a goal to capture a larger price movement to earn more than a possible uptrend or downtrend in the stock on an intra-day basis. Swing trades usually rely on study of larger time frame charts including the 15 minute, 60 minute, daily charts or weekly charts.

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There are lot of novice traders so First of all for them, we will try to explain the meaning of swing trade as this will help them to understand and do the swing trading very easily. Swing trading often called as a short-term trading strategy. Generally traders apply this swing strategy for buying and selling stocks whose technical indicators suggest an bullish or bearish trend for a short term period . Usually Swing trading strategy for one day to one week or two weeks. In swing trading traders cant trade for intraday or for long term, traders has to trade for only short time that is two to three days or two weeks.

Also Read: Which is the best indicator for intraday trading?

The following Chart will give you descriptive idea about swing trading

There are so many indicators in the Nse share market like Super Trend, RSI, Trend Indicator, MACD, Parabolic SAR, Bollinger Bands, Moving average, Momentum Oscillator, Visual Analysis Indicator etc…but according us following indicators are really good for swing traders.

There are Two useful Indicators for Swing trading:

Moving Average

The first useful indictor that a trader should study is the moving average, the focus of the trader while looking at the moving average is to identify and confirm the trend of the stock.

The easiest moving average indicator to use is the simple moving average. It requires that all the closing prices be added up for a specific number of days, and then taking the total and dividing it by the same number. On a graph, it is possible to plot the average so that one can understand what is happening with the market price. A shorter-term moving average is more volatile, then the longer term average.

Relative Strength Index (RSI)

The Next Best Indicator for Swing trading is Relative Strength Index (RSI), its also one of the best technical indicators for swing trading.
Swing Traders normally called Relative Strength Index as RSI and this is a favourite indictor for professional traders in Nse market

This indicator helps a trader to provide information about an ideal position for enter in the market. That is the fact the market may be overbought or may be oversold. It is an excellent strategy when the market has proven to be flat as well as range bound.

Relative Strength Index (RSI) = 100 – 100 / (1 + RS)

Where RS = Average gain of up periods during the specified time frame / Average loss of down periods during the specified time frame/

RSI values range from 0 to 100. The default time frame for comparing the RSI is 14 trading days. A RSI value of 70+ indicate that the stock is becoming overbought or overvalued, and therefore a trend reversal or corrective downtrend can happen in the stock.

If RSI of the stock is below 30 ie. 30- can be interpreted as that the RSI is indicating that stock is in the oversold or undervalued condition, which is a signals of a trend reversal in the stock ie. stock is likely to move up and can be brought at current levels for swing trading.

Also Read: What is super trend in technical analysis?

Swing traders are advised to carefully study the above article before they start trading in live Nse market. We also advised traders to trade as per their risk capability.

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Also Read:

What is a good RSI number?

What are the Best Technical Indicators for Position Trading?

Tags best indicators, indicators for swing trading, swing trading

Stock Market

What is a good RSI number?

Post author By admin
Post date January 13, 2018

Ultimate Guide to the Relative Strength Index (RSI)

The Full Form of RSI is Relative Strength Index which is the important indicator of Swing Trading. RSI indicator was introduce by J. Welles Wilder in his book “New Concepts in Technical Trading Systems”. to the trading community. RSI is the one of the best technical indicator & momentum oscillator that measures the speed and change of price movements, RSI oscillates between zero and 100.

RSI shows overall market and individual stock position in National stock Exchange (NSE) & Bombay Stock Exchange (BSE). The RSI is one such indicator that analysts use to determine whether the asset is in an oversold or overbought territory. If it shows a value less than 30, it indicates that the stock, or the index, is in the oversold territory, while a value higher than 70 suggests an overbought status. One can also get the idea of whether the present trend in the stock is intact or is likely to reverse in coming days.

Also Read: What is supertrend in technical analysis?

In the so many articles, interviews, and books over the years have given due credit to the RSI has the most popular momentum oscillator. Most of all technical analyst use RSI indicator to consider the trend of the market i.e. bull market or the bear market and its ranges. RSI indicator also shows when the market will reverse from bull market to bearish and vice versa. So trader can square off his position immediately if the position is against the RSI signal.

RSI Indicator – Multiply Your Profits

Calculation

Relative Strength Index (RSI) = 100 – 100 / (1 + RS)

RS = Average Gain / Average Loss

To simplify the calculation explanation, RSI has been broken down into its basic components like RS, Average Gain and Average Loss. This RSI calculation is based on 14 periods. Losses are expressed as positive values, not negative values.

The very first calculations for average gain and average loss are simple 14-period averages.

First Average Gain = Sum of Gains over the past 14 periods / 14.
First Average Loss = Sum of Losses over the past 14 periods / 14

The second, and subsequent, calculations are based on the prior averages and the current gain loss:

Average Gain = [(previous Average Gain) x 13 + current Gain] / 14.
Average Loss = [(previous Average Loss) x 13 + current Loss] / 14.

In short RSI is most popular Indicator to shows oversold or over bought position and Running Market Trend .

Also Read: What is the meaning of square off in intraday?

So to sum up what is a good RSI number, Stocks for which the RSI is approaching 30 are a clear buy on dips and if RSI has hit 70 it’s a clear signal to sell on rallies. We also advised traders that if there is a sell signal on the RSI chart, one needs to look for confirmation from other technical indicators for better gains . Only when other indicators suggest the bearishness, they should short sell the stock in NSE market.

Tags Relative Strength Index, RSI

intraday trading

What is super trend in technical analysis?

Post author By admin
Post date January 8, 2018

technical analysis of supertrend indicator

Technical Analysis: SuperTrend Indicator

If you want to become a professional intraday trader and earn money in nse stock market you have to learn and implement technical analysis for spotting trades by using different indicators like super trend. Indicators are independent trading techniques introduced to the world by successful traders. Indicators are built on preset logic using which traders can supplement their technical study (candlesticks, volumes, S&R) to arrive at a trading decision. Indicators help in buying, selling, confirming trends, and sometimes also predicting trends. A ‘Super trend’ indicator is one, which can give you precise buy or sell signal when market is in either a uptrend or down trend.

Also Read: What is the meaning of square off in intraday?

Before we start providing information about the Supertrend indicator, let me give you idea about the term “Technical Analysis”. There are lot of novice traders who do not have knowledge of term technical analysis and this will help them to learn the concept better..

Technical Analysis

The term technical analysis means a research based on movement of stock market prices in the past and the technical indicators. A Technical analyst always believes that short term price movements in the future will always depends on movement of the stock in the past. If a trader wishes to do day trading, he should be well versed with the Technical Analysis or he should find a company like a1intradayitps.in to do through technical research and then provide share tips in nse market for day trading.

Also Read: Which is the best indicator for intraday trading?

Super Trend

Super trend is the best indicator to find buying stock & selling stock opportunity in Bombay stock exchange ( BSE) & National Stock Exchange ( NSE). All the traders who do technical research before trading should always use this indicator to identifty the best stock to either buy or short sell and also the perfect time to execute the orders.

A trader can first calculate the main Super Trend using the daily charts and then use the one hour or 30min or a 15min chart to locate entry timings for trade.

The Super indicator is very easy to use and also gives an accurate reading about an ongoing trend of the stock. It is constructed with two parameters, namely period and multiplier. The default values used while constructing a super indicator are 10 for average true range or trading period and three for its multiple.

The supertrend indicator measures trend direction but not strength. It gives buy or sell signals when price crosses the indicator. In a sense, it is similar to a moving average and trailing stop hybrid. Since the indicator flips sides from above to below price action and back it adds an element of the parabolics stop-and-reverse for actually making the trade.

Also Read: How does a trading tips company give accurate Intraday Tips?

A chartist using ‘Supertrend’ needs in two important things, first the ‘period (ATR number of days)’ and second one ‘multiplier (value by which ATR is multiplied)’

Like any other indicator, ‘Supertrend’ works best when used with other indicators such as MACD, Parabolic SAR, RSI, This indicator performs badly in volatile markets, traders need to ensure they have identified the underlying trend and use this indicator in tandem with other indicators.

Super Trend Formula

Upper = ((high + low / 2) + Multiplier * ATR …Only if price < upper

Lower = ((high + low / 2) – Multiplier * ATR …Only if price > lower

ATR = simple moving average of TR

Tags supertrend inicator, Technical Analysis