The Best Charts for Swing Trading
There are so many options and information for traders in today’s online world, that most new traders fall into analysis paralysis. What are the best charts, what is swing trading, where do I start?
In today’s post, I want to share the best charts to use for swing trading.
The Best Charts Platform for Swing Trading
First and foremost, I believe that TradingView has created the best charts for stocks. It is FREE, and powerful. I do not get paid anything for recommending them, and I always recommend them to everyone.
Why? Because their entire platform is online based, and complete with all of the most common (and not so common) indicators a trader needs. In addition to that, you can also share your trading ideas with the community, as well as view ideas from other traders. The community and collaboration feature is very helpful and friendly – especially for new traders.
By far the best feature of TradingView charts is that they allow you to create custom templates, indicators and much more. It really is a complete platform and hands down the best charts available. Give it a try, you will not regret it.
My Favorite Time Frame for Swing Trading
One question that new traders have is what are the best time frames for analysis when you are swing trading.
To answer this, I will share my settings and how I use them in my trading strategy.
Trend Direction Identification
Weekly and daily charts:
I will use the weekly to show me in which direction the stock is going, up or down? Simple as that. Once I answer this, the next question I will ask myself is where would be a good area to look to get into the trend, or fade it.
This is where I switch to the daily chart. I will then identify, are we in a primary move in the trend direction, or in a corrective move against the trend. This will then help me pinpoint a more narrow area of interest that I will look for trade entries.
Notice that so far, I have not made any trades – it is all just cycle and trend analysis, with the benefit of identifying a target entry area for my swing trading strategy.
Four hour, one hour and fifteen minute charts:
Once I have identified my target entry area, I will switch to the four hour chart and see what the price action is telling me. If it is moving in my favor already, I will identify a pullback level at which I could jump in with little risk, and a lot of continuation potential. The key is to look for entries when price action is moving against the trend, but slowing down.
From there I will switch to the one hour to further drill down into an entry zone.
The fifteen minute gives me the option to nail down a price with laser precision, but if you are not trading full time and have another job, you can easily get also get an entry on the hourly chart. The only difference is that you may have to take a larger risk on your trade, but you can compensate this with taking less position size to reduce your total risk to your strategy parameters.
Swing Trading Charts Setup
Here is my charting setup for swing trading analysis. I will look at each chart briefly, and then expand each of them to cover the full screen while I draw trendlines, support levels and overall technical analysis.
So there you have it, a detailed explanation on how to identify and follow a trend, and further drill down into entry zones and executions.
When it is all said and done, a swing trading strategy is the most important part, followed by your discipline in executing it.
Once you have your rules, you can use the information above to help you cycle through different chart timeframes to pin-point your entry with laser precision.
If you would like help creating your trading plan, or to learn more of the tools that professional traders use to analyse and execute setups, check out our subscription packages.
If you are new and want to learn how to swing trade, the options pro membership is an affordable, but powerful way to get started.
If you want to day trade in a live room and learn how the professionals make money reading order flow, the day trader pro package is the perfect solution for you.
The information contained in this post is solely for educational purposes, and does not constitute investment advice. The risk of trading in securities markets can be substantial. You should carefully consider if engaging in such activity is suitable to your own financial situation. TRADEPRO Academy is not responsible for any liabilities arising as a result of your market involvement or individual trade activities.