Swing Trading-What Indicator Accurately Tells Whether The Market Is Trending Or Not!

In swing trading, it is very important for you to use the trending indicators for a trending stock or security and a ranging indictor to a ranging stock or security. Before swing trading a stock or a security, you need to determine whether the stock or the security is trending or ranging. You need to do this right in order to make your swing trading a profitable success.Watch this weird 30 minutes Stock Trading video just now.

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As a swing trader, you should only rely on the hourly and daily charts. Anything longer is only appropriate for position traders or buy and hold investors. Now, if you are satisfied with your eyeballing the charts, you can use an indicator that can tell you about the strength of the trend.

The most popular indicator that shows whether the security is trending or ranging is the Average Directional Index (ADX). ADX actually measures the strength of the trend rather than it's direction. It oscillates between the value of 0 and 100. The standard setting for ADX is 14 days period.

Now before you plan to swing trade a security, first you should determine whether the security is trending or not trending. As explained above, you can eyeball the charts to determine whether the security is trending o not or you can use the ADX indicator. It is upto you. But don't make the mistake of swing trading a non trending security !