What are Swing Charts?
What is a Swing Point?
Each morning we will give a Swing Point. The Swing Point is the level we believe the market needs to say above or below to keep the market in its current trend.
The swing point is usually the tightest level we provide. This number may be above the market on the close and start the next day below the market. This may be caused by the markets overnight action.
The ‘Long Term’ analysis will have a Swing Point as well. This will also be the level where we feel the long term trend will change.
How to understand the Intraday Swing Chart
On the Intraday Swing Point Chart there are three main levels.
The most important level is the one in the middle which represents the actual swing point. The level above (green line) shows where the market can go as long as the market stays above it, or crosses back over. The lower level (red line) is the exact opposite for when the market is under the swing, or crossing back under.
For the more aggressive trader who want to trade more then just the levels provided on the Market Price Ladder, we recommend that you trade from the short side when the market is below the swing point and the long side when the market is trading above the swing point.
The swing points will at times differ from each other based on the timeframe. You can have a situation where the short term is telling you to trade from the long side and the long term swing point from the short side. The short term swing point is obviously more important for the day trader, but the long term swing can help those who want to hold a position for more than just the day.
Our main goal with the Intraday Swing Point Chart is to keep you on the right side of the trend for both short term and long term.
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