7+ Best Indicators for Swing Trading You Must Know
Swing trading is all about grabbing short to medium-term price movement trends in the stock market. It’s somewhere in between — perfect for people who can’t stare at charts all day but still want to make steady gains from price swings that happen over days or weeks.
But here’s the catch — timing is everything.
That’s where the best indicators for swing trading come in. They help you spot the right moment to enter or exit a trade. In this blog, we’ll break down the top swing trading indicators, how to use them, and how to find the best stocks to swing trade — in plain, easy-to-understand language.
What Is Swing Trading?
Swing trading means buying a stock or financial instrument for a few particular days to a month, with the intention of grabbing a “swing” or a short-term price fluctuation. Unlike day traders who close their positions on the same day, swing traders allow their trades to go on longer, such as weeks together, based on the given technical signals.
Success in swing trading comes down to choosing the right stocks and using the right tools — especially swing trading indicators.
Why Indicators Matter in Swing Trading
Indicators are like road signs in the world of trading. They help you make sense of where the market might go next. Swing traders use them to:
- Identify trend direction
- Spot potential reversal zones
- Confirm entry/exit signals
- Manage risk
The trick is to combine indicators wisely — not overload your screen with ten of them. Let’s explore the best indicators for swing trading that can help you trade with more confidence.
1. Relative Strength Index (RSI)
What it is: RSI is a momentum oscillator that shows us how overbought or oversold a particular stock is.
Why it’s useful: In swing trading, RSI helps one detect potential reversals. When RSI is above 70, the stock might be overbought (and due for a pullback). Below 30? It could be oversold (and about to bounce).
How to use RSI in swing trading:
- Buy signal: RSI below 30, bouncing up
- Sell signal: RSI above 70, turning down
Pro Tip: One can combine RSI with trendlines or moving averages to confirm direction and trend.
2. Moving Averages (MA)
What they are: Moving averages smooth out price data and help identifying trends.
Types used in swing trading:
- Simple Moving Average (SMA)
- Exponential Moving Average (EMA) – adds more solid weight to recent price movements and better accuracy for confirmation of trades.
Popular setups:
- 50-day SMA – used to gauge the medium-term trend
- 9-day EMA – often used for faster signals
How to use:
- A bullish movement can potentially be arriving if a 9-day EMA crosses above the 21-day EMA.
- The trend is likely to continue to rise up if the price is above 50-day SMA .
3. MACD (Moving Average Convergence Divergence)
What it does: MACD is a trend-following momentum indicator that provides a connection between two moving averages.
Why swing traders love it: It’s excellent for spotting changes in momentum.
How to read MACD:
- MACD line crosses above signal line: Bullish
- MACD line crosses below signal line: Bearish
- MACD histogram: Shows the strength of the move
Best use: Combine with RSI or volume to avoid false signals.
4. Bollinger Bands
What they are: Bollinger Bands is a volatility-based indicator that expands or contracts based on price movement.
Structure:
- Middle line: 20-day SMA
- Upper and lower bands: 2 standard deviations away from the SMA
How swing traders use them:
- When price touches the lower band, it may bounce back (buy zone)
- When price hits the upper band, it may reverse down (sell zone)
Warning: Don’t trade just because the price hits a band — confirm with another indicator like RSI.
5. Volume Profile or Volume Analysis
Why it matters: Volume confirms whether price movements are supported by strong participation or just false noise.
What to look for:
- Rising volume with price rise = strong uptrend
- Rising volume with price fall = strong downtrend
- Low volume = weak moves, risky entries
Using volume along with price action is one of the most underrated swing trading indicators.
6. Stochastic Oscillator
What it does: This indicator compares a stock’s closing price to its price range over a certain time.
Settings often used: 14-period %K and %D lines
How swing traders use it:
- Overbought: Above 80 – could reverse downward
- Oversold: Below 20 – could bounce up
Again, combining it with trend indicators (like MA) gives better results.
7. Fibonacci Retracement
What it does: Identifies potential pullback zones based on the ratios (like 38.2%, 50%, 61.8%).
Best used when: A stock is trending and one is looking to enter the stock during a pullback.
How to use:
- Draw Fib levels from swing low to swing high (or vice versa)
- Watch how price reacts near those levels — especially 61.8%
Great for timing entries with low risk.
Bonus: Swing Trade Scanner Tools
Instead of manually scanning hundreds of charts, you can use a swing trade scanner to filter stocks based on:
- RSI levels
- Moving average crossovers
- Unusual volume
- Bullish or bearish candlestick patterns
Some popular scanners:
- TradingView (custom filters)
- TrendSpider
- Finviz
Having a good scanner saves time and helps you how to find stocks to swing trade efficiently.
How to Find Stocks to Swing Trade (Checklist)
- Sticking to large or mid-cap stocks with good liquidity
- Look for recent breakouts or breakdowns
- Use swing trade scanner to filter by RSI or MACD
- Check overall trend using moving averages
- Confirm setups with volume and support/resistance
Pros of Using Swing Trading Indicators
- Clear visual signals
- Help reduce emotional decisions
- Great for both beginners and experienced traders
- Can be used across sectors and timeframes
Mistakes to Avoid
- Relying on one indicator blindly
- Ignoring market news or earnings events
- Using indicators without understanding what they mean
- Entering too late because you waited for “perfect” alignment
Conclusion:
Swing trading is an excellent option for one who wants to become a part-time trader or make side income. But to do it correctly, one needs to have solid strategy in mind- and the best indicators for swing trading are the starting pillars to make a strategy.
Here’s a quick recap:
Indicator | Use Case |
RSI | Spot overbought/oversold conditions |
MACD | Track momentum and trend reversals |
Moving Averages | Identify trend direction |
Bollinger Bands | Spot volatility and reversals |
Stochastic Oscillator | Confirm reversal points |
Fibonacci | Find retracement zones |
Volume | Confirm trend strength |
Swing Trade Scanner | Save time, filter best setups |
Always remember, no indicator is perfect on its own. Combine 2-3 that work for you, keep things simple, and test your strategy.
Bonus Tip: Don’t Just Rely on Indicators
While indicators are helpful, don’t forget the power of simple tools like:
- Candlestick patterns
- Support/resistance zones
- Trendlines
- Market sentiment/news
If one is able to connect both — technical indicators and price action — they end up becoming a smarter, more confident swing trader.
If one is just begining, they can pick two swing trading indicators, test them for a few weeks, and gradually construct their system. One must keep learning, stay consistent, and not chase after every signal.
Also Read : 5+ Types of Doji Candles Explained with Examples
FAQ'S
Which are the best indicators for swing trading?
The best indicators for swing trading include RSI, MACD and moving averages. Each comes with its own unique strength. One must combine both — for example, trend indicator (like MA) + momentum indicator (like RSI).
How to find stocks to swing trade?
Using a swing trading scanner with filters such as RSI below 30, price near support, or moving average crossovers. One must focus on stocks with solid volume and lucid chart patterns.
Can I swing trade without indicators?
Yes, one can implement price action, chart patterns, and support/resistance. But indicators aid traders to improve accuracy and confirm their analysis.
How often should I check charts for swing trading?
Once or twice a day is enough. Since swing trading works on daily or 4-hour charts, one need not monitor them every single hour.
