#SwingTradingStrategy Mastering technical indicators can give you a serious edge. Below are 6 powerful tools — from momentum to trend strength — that help you spot entries, exits, and avoid common traps.
🧠 #1 RSI (Relative Strength Index)
Settings: RSI(14), Zones: 70/30
Measures price momentum (0–100).
RSI > 70 → Overbought → possible sell
RSI < 30 → Oversold → possible buy
✅ Best in ranging markets.
⚠️ In trends, RSI can stay >70/<30.
💡 Use RSI-price divergence for reversals.
📈 #2 MACD (12, 26, 9)
Shows EMA interaction + signal line.
MACD crosses above signal → Buy
MACD crosses below → Sell
✅ Best on 4H/1D.
⚠️ Weak in sideways markets — use with RSI/ADX.
💡 Cross under 0 → stronger reversal.
🌀 #3 CCI (20), Levels ±100
Shows price deviation from average.
CCI > 100 → Overbought → short
CCI < –100 → Oversold → long
✅ Confirm with price/patterns.
💡 CCI + divergence + level = reliable signal.
📊 #4 ADX + DI (14), Levels 20/30
ADX shows trend strength, not direction.
ADX > 20 → trend forming
DI+ > DI– → bulls dominate
DI– > DI+ → bears dominate
✅ Avoid trading if ADX < 15.
💡 Combine with MACD: trend + momentum.
📉 #5 EMA (50/200)
EMA reacts faster than SMA.
EMA50 > EMA200 → Golden Cross → Bullish
EMA50 < EMA200 → Death Cross → Bearish
💡 EMA20+50 for short trends (1H/4H), EMA200 as key support/resistance on daily.
📊 #6 SMI (Stochastic Momentum Index)
Levels: –40 (long), +40 (short)
SMI < –40 → potential long
SMI > +40 → short/exit
💡 Confirm with EMA50 or RSI.
🧩 Final Tip:
Don’t rely on one tool. Combine trend + momentum + context (levels, patterns, volume). Always consider the timeframe and volatility of the asset.