Technical Indicator MEGA Reference Part 53 – Swing Index

Swing Index

The Swing Index is a technical indicator that attempts to predict future short-term price action:

  • When the Swing Index crosses over zero, then a trader might expect short-term price movement upward.
  • When the Swing Index crosses below zero, then a trader might expect short-term price movement downward.

A few of the many potential buy and sell signals are shown below in the chart of the E-mini Russell 2000 Futures contract:

As can be noted from the chart above of the e-mini futures contract, numerous potential buy and sell signals are given. The Swing Index advertises itself as a tool for very short-term trading.

The Swing Index is used in its later format, the Accumulative Swing Index.

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