Best Technical Indicators for Swing Trading

Best Technical Indicators for Swing Trading [Beginners’ Guide]

Without understanding the best technical indicators for swing trading, you won’t be able to become a professional trader who lives on it. So, our experts have come up with the most promising indicators to help you to become an expert swing trader.

As a beginner, you need extensive analysis capability for swing trading. There are several highly accurate swing technical trading indicators available in the market. As a swing trader, you would want to know the best ones to make use of.

There is no hard and fast rule in determining the best ones in the market. However, a technical swing trading indicator is crucial to implementing swing trading strategies in forex, cryptocurrency, or commodity trading.

Finding the best technical indicators for swing trading is crucial. Here is a complete beginners’ guide for you.

An Explanation of Technical Analysis Indicator

Technical analysis indicators for swing trading can seem tricky to understand as a beginner in the trading industry. However, it would help if you had technical indicators to analyze the numerical trends of the trading market.

The primary function of trading indicators is to help you figure out how the prices of the assets move. You can analyze short and long-term price trends.

Trading indicators for swing trading cryptocurrency indicate what the crypto market trend would look like shortly. Therefore, you can consider the indicators as calculators. They calculate the numerical events and signal future happenings.

Apart from cryptocurrency, the indicators can be used in other online trading markets. For example, they are highly famous among swing traders. They can measure price movement, momentum, volume, and other signals of the trading market to implement swing trading strategies.

Why Use Technical Indicators for Swing Trading?

The fundamental factor of any currency market is the price changes of the currencies. As a swing trader, you must be skillful in understanding the trends in which the prices change. That is where technical indicators are required.

Technical indicators allow traders to find out future movements of prices from the past analysis. This is crucial to invest your assets in the trading market.

Moreover, you need to know how long you should hold your assets and when you should sell them away. Again, technical indicators allow you to decide after analyzing the market trends.

Now that you know how crucial technical indicators are, you need to know the best technical indicators available. In the following section, we will look into the top 5 technical hands for swing trading.

Best Technical Indicators for Swing Trading

5 Best Technical Indicators for Swing Trading

As a beginner in the trading industry, you need the best technical indicators for swing trading. This can ensure that you get the highest gains out of our investment.

However, most novice traders tend to follow what the world wants them to do. As a result, novice swing traders end up getting their hands on any indicator they find in front of them.

Instead of doing that, you should consider the information you seek from the indicator. This can help you in utilizing the best hands available for swing trading.

Here are the 5 best technical indicators for swing trading.

1. 50-Day and 200-Day EMA

The ema indicator for swing trading is a part of the Moving Averages indicator. With this indicator, you can analyze the price movements over a certain period.

The 50-day and 200-day EMA are the two sub-divisions of the Exponential Moving Averages indicator. The 50-day EMA measures the price changes for the short-term span of an asset. On the other hand, the 200-day EMA is a long-term measurement of an asset’s price changes.

The EMA uses exponential scales to determine opportunities to buy and sell assets. Thus, it provides an excellent signal for the traders to buy or sell their assets.

The functional aspect of the indicator is based on the volatility of prices. Therefore, you can understand a multidimensional movement of asset prices rather than focusing on one-dimensional changes. 

2. Mean Reversion Indicator with Bollinger Bands

The idea of Bollinger Bands is to figure out the travels of the prices on the chart. The buying and selling of assets can travel to unexpected levels over and under the central point. Bollinger Bands is a technical indicator that is used to determine how far the changes can occur.

You can determine two zones with this indicator. The first one is the overbought level. This is the indication of the top-level the price can reach. The second one is the oversold levels. This level is an indication of how low or bottom the prices can fall to.

The center point or line of the prices is considered as the Moving Averages point. This is the one we just came to know about from the previous point. Costs of any asset usually move between the highest and lowest peak, which is either over or lower the Moving Averages line.

One of the widely popular swing trading strategies is the Support and Resistance Strategy. That is precisely what the Bollinger Bands provide traders with. The highest point or the overbought level is the “Resistance” point, and the lowest or the oversold level is the “Support” point. With this, traders can understand when to buy assets and when to sell away the assets.

Best Technical Indicators for Swing Trading

3. Relative Strength Indicator through Stochastics

Stochastics indicator enables a swing trader to understand the market movement through the cycles of buy and sell. It is a Relative Strength Indicator (RSI) that focuses on the price up to and down cycles over a limited timeframe.

You can quantify your gains and losses for a fixed timeframe through RSI. There is a 0 to 100 scale. This helps traders to understand the asset’s value. For example, an asset with the RSI indicator of 70 means that it is overbought. When the asset has an RSI of lower than 40, it is considered to be oversold.

You can determine the bullish and bearish trends through RSI. For example, a cryptocurrency with below 50 RSI means it is bearish, whereas more than 50 RSI indicates bullish.

With the Stochastic Oscillator, you can determine the difference in the price range. It is a graphical method of exploring the changes in price over a fixed period.

4. Momentum Indicator through MACD

If you want to understand the rapid price changes, you need to use the Moving Average Convergence Divergence (MACD) indicator. This is one of the classic technical macro indicators for swing trading that determines the pace of the price change movement. It is considered one of the best technical indicators.

The technical indicator considers the convergence and divergence of two Moving Averages together. As a result, traders can determine the direction, movement, and duration of any price change trend.

The MACD calculates the price change trend by deducing the 26-day EMA from the 12-day EMA. Thus, a negative value indicates a negative direction. Conversely, a positive value indicates a positive trend.

5. Average Directional Index (ADX)

The last technical indicators for swing trading penny stocks in our list is the Average Directional Index (ADX). If you wish to determine the price movement quality, you use ADX to analyze the trends.

In other words, ADX determines the strength of the price change trend. Asset prices can either go up or down. Therefore, ADX has two indicators. One is the Negative Directional Indicator (-DI), and the other is the positive direction (+DI).

The ADX is a guide for traders to understand the logic behind a swing trade. Instead of showing a specific direction or movement of price change, ADX determines how strong buying or selling the asset would be at a particular time.

ADX also has a 0 to 100 scale indicator. If the scale has a value of over 25, you can implement your swing trading strategies. When the score is anything lower than 25, traders should not enforce their strategy.

A price change trend has no significance if the ADX score is between 0 to 25. The trend is weak when the score is 25 to 50. A mediumly strong trend is 50 to 75. Finally, a strong trend score is 75 to 100.

FAQ: Best Technical Indicators for Swing Trading

Traders are often asking many questions that they are confused about. So, we have come up with a solution for you which is going to help you the most. We have answered the most asked questions on different trading community platforms. Check those answers along with the questions so you get your issue solved and also go through other questions to extend your knowledge about swing trading indicators.

Question – 01: What are the Best Technical Indicators for Swing Trading?

Answer: There are several technical indicators available for swing trading. EMA, Bollinger Bands, RSI, ADX, and MACD are the 5 top technical indicators widely popular among swing traders.

Question – 02: Is MACD Good for Swing Trading?

Answer: MACD is one of the most popular technical indicators for swing trading. One of the best things about MACD is that it is usable by both professionals and beginners.    

Question – 03: What is the Best Volume Indicator for Swing Trading?

Answer: The On-Balance-Volume (OBV) indicator is the best volume indicator for swing trading. OBV is used to draw lines and set trendlines of price changes.

Question – 04: Does Technical Analysis Work for Swing Trading?

Answer: Technical analysis is extremely important for swing trading. As a swing trader, you must be skillful in analyzing price change trends. Therefore, you need technical indicators to explore the technical aspects of trends for swing trading.

Question – 05: What is The Best Time Frame for Swing Trading

Answer: You can use Oscillator charts to identify the price change trends. For this, you should focus on short-term charts for the best identification of trends. This can be daily, weekly, or even 60-minute charts.


The 5 best technical indicators for swing trading can be effective if you can utilize them properly. As a beginner, you may not need all the indicators. It is your job to determine the effectiveness of one hand and make full use of it. Though there are general indicators available for swing trading, you should always go for the technical indicators after learning general.

You can also consider using a combination of these indicators. Moreover, the choice of the indicator also depends on what type of asset you intend to trade. There are numerous factors to consider. It would help if you focused on the aspects to implement the best strategies.

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