Here are my favorite features for Swing Trading 'indicator → logic → signals → filters → features'.
#SwingTradingStrategy let's consider 6 accurate indicators for Swing trading.
🧠 #1 RSI (Relative Strength Index) — 'Wave of emotions'
Settings: RSI (14), zones 70 / 30
✅ What is:
RSI — oscillator that reflects price momentum, i.e., 'strength of movement' of the last 14 candles. The indicator fluctuates from 0 to 100.
🟢 Signals:
RSI > 70 → overbought → potential selling zone
RSI < 30 → oversold → potential buying zone
The strongest signals occur when RSI exits a zone (for example, exited the 30 zone → buy confirmed)
🧩 Filters:
Works better in sideways markets than in a trend
In a trending market, RSI can stay >70 or <30 for a long time — don't enter blindly
💡 Feature:
Use RSI/price divergences as additional confirmation of a reversal
📈 #2 MACD (Moving Average Convergence Divergence) — 'Your entry momentum indicator'
Settings: MACD (12, 26, 9)
✅ What is:
MACD shows the interaction of two exponential moving averages (EMA12 and EMA26) and their difference. Oscillator + signal.
🟢 Signals:
MACD line crosses the signal line (9) from below to above → buy signal
Crossing from above to below → sell signal
🧩 Filters:
Works better on medium-term timeframes (1D, 4H)
Not ideal in a strong flat → add RSI or ADX as a filter
💡 Feature:
MACD crossing in the zone below 0 → stronger reversal (especially at the bottom of a decline)
🌀 #3 CCI (Commodity Channel Index) — 'Hunting for extremes'
Settings: CCI (20), levels +100/-100
✅ What is:
Oscillator that shows how much the price deviates from its average.
🟢 Signals:
CCI > +100 → overbought → can look for short
CCI < -100 → oversold → look for long
🧩 Filters:
Use only after confirmation by price or pattern
Can be combined with EMA50/200 or RSI
💡 Feature:
Divergences CCI + price level → more reliable signal
📊 #4 ADX + DI (Average Directional Index) — 'Movement strength filter'
Settings: ADX (14), levels 20/30
✅ What is:
ADX measures trend strength, not direction. In conjunction with DI+ and DI–, it determines who is dominant: bulls or bears.
🟢 Signals:
ADX > 20 → trend begins to gain strength
DI+ > DI– → bullish pressure; DI– > DI+ → bearish
Crossing of DI+ and DI– → change of advantage in the market
🧩 Filters:
Avoid trading when ADX < 15 — it's flat
💡 Feature:
Combine ADX with MACD: trend + momentum = ideal entry
📉 #5 EMA (Exponential Moving Average) — 'Swing trader's compass'
Popular pairs: EMA 50 and EMA 200
✅ What is:
EMA — exponential moving average focusing on new prices. Responds faster to movement than SMA.
🟢 Signals:
EMA50 > EMA200 → bullish trend (Golden Cross)
EMA50 < EMA200 → bearish trend (Death Cross)
💡 Feature:
EMA20 + EMA50 → detecting short trends on 1H/4H
EMA200 → global reference on the daily chart
📊 #6 SMI (Stochastic Momentum Index) — 'Accuracy at reversal'
Levels: –40 (long), +40 (short)
✅ What is:
Enhanced version of Stochastic. A more 'smooth' and less noisy oscillator.
🟢 Signals:
SMI < –40 → can enter long
SMI > +40 → exit or short signal
🧩 Filters:
Combine with EMA50 or RSI for trend confirmation
🧩 Conclusion:
Strategies with indicators — not a magic wand. They work if:
combine 2–3 indicators of different types (trend + momentum + volume)
add context: levels, patterns, volume
consider the timeframe and volatility of the asset