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PZ Swing Trading

Are you a swing trader? The PZ Swing Trading is the first indicator designed to detect swings in the direction of the trend and possible reversals. The indicator studies several price and time vectors to track the aggregate trend direction and finds situations in which the market is oversold or overbought and ready to correct.

  • Profit for market swings without getting whipsawed
  • The indicator displays the trend direction at all times
  • A colored price band represents the opportunity baseline
  • Colored dashes represent possible reversal swings
  • Customizable trend and swing periods
  • It implements email/sound/push alerts
  • The indicator is non-repainting
Swing Trading is a style of trading that attempts to capture gains in a security within one day to a week, although some trades can eventually be kept alive for longer. Swing traders use technical analysis to buy weakness and sell strength, and have the patience to wait for these opportunities to happen, because it makes more sense to buy a security after a wave of selling has occurred rather than getting caught in a sell-off.


What is Swing Trading

Swing Trading is a style of trading that attempts to capture gains in a security within one day to a week, although some trades can eventually be kept alive for longer. Swing traders use technical analysis to buy weakness and sell strength, and have the patience to wait for these opportunities to happen, because it makes more sense to buy a security after a wave of selling has occurred rather than getting caught in a sell-off


The Opportunity Baseline

Much research on historical data has proven that markets suitable for swing trading tend to trade above and below a baseline price band, which is portrayed on the chart by a colored band, calculated using the Average True Range.

The baseline is used by the swing trader, which strategy is buying normalcy and selling mania or shorting normalcy and covering depression. In absence of exhaustion patterns, the swing trader goes long at the baseline when the stock is heading up and short at the baseline when the stock is on its way down.

Swing traders are not looking to hit the home run with a single trade, they are not concerned about perfect timing to buy a stock exactly at its bottom and sell exactly at its top. In a perfect trading environment, they wait for the stock to hit its baseline and confirm its direction before they make their moves.

The story gets more complicated when a stronger uptrend or downtrend is at play on the current or higher timeframe: the trader may paradoxically go long when the stock jumps below its baseline and wait for the stock to go back up in an uptrend, or he may short a stock that has stabbed above the baseline and wait for it to drop if the longer trend is down. To this effect, the indicator displays reversals as colored dashes.


Reversals

Sophisticated traders also profit from reversal swings against the prevailing trend, by looking for exhaustion patterns on the chart (double top, double bottom, head and shoulders, etc), Harmonic Patterns, Wolfe Waves or Oscillator Divergences.

Swing trading is actually one of the best trading styles for the beginning trader to get his or her feet wet, but it still offers significant profit potential for intermediate and advanced traders. Swing traders receive sufficient feedback on their trades after a couple of days to keep them motivated, but their long and short positions of several days are of the duration that does not lead to distraction.

Swing Trading has several advantages over other trading styles. Most top swing traders spend 20 or 30 minutes at day in front of the computer and nothing else, which is enough to update their positions and find new ones. It is perfect for people holding a day time job, because it offers the greatest amount of return for the least amount of work.

If you are a novice trader, forget about the nonsense of trading M5 charts and adopt a trend trading or a swing trading approach.


Some Nitty-Gritty Details

  • The indicator is evaluated every bar, not every tick.
  • The indicator evaluates several price/time vectors recursively
  • It implements visual, sound, email and push alerts for all setups enabled.


Developers

In order to build an expert advisor, you can read data from the indicator using the iCustom() function as exemplified below.

//---- Step 1: Define constants in your EA
#define OP_BUY_CORR     2
#define OP_SELL_CORR    3

//---- Step 2: Read values from the signal buffer
int start()
{
   // Read signal and current trend
   double signal  = iCustom(Symbol(), Period(), "Market\\pz-swing-trading", 6, 1);
   double trend   = iCustom(Symbol(), Period(), "Market\\pz-swing-trading", 7, 1);
   double trend_1 = iCustom(Symbol(), Period(), "Market\\pz-swing-trading", 7, 2);
   
   // Do something
   if(trend  == OP_BUY && trend_1 != OP_BUY)  { /* Your code for bullish trend change */ }
   if(trend  == OP_SELL && trend_1 != OP_SELL){ /* Your code for bearish trend change */ }
   if(signal == OP_BUY)                       { /* Your code for bullish swing */ }
   if(signal == OP_SELL)                      { /* Your code for bearish swing */ }
   if(signal == OP_BUY_CORR)                  { /* Your code for bullish correction */ }
   if(signal == OP_SELL_CORR)                 { /* Your code for bearish correction */ }
   if(signal == EMPTY_VALUE)                  { /* Your code if no signal */}
   
   // Exit
   return(0);
}


Author

Arturo López Pérez, private investor and speculator, software engineer and founder of Point Zero Trading Solutions.

blty86
109
2014.10.22 17:41 
 

入场信号准确率高! Very good indicator

Ian Tavener
1169
2014.10.22 17:00 
 

Very high quality indicator. Has made my time much more efficient

Frank Breinling
10179
2014.06.27 18:42 
 

Very good indicator. Helps a lot in my trading decisions.

Highly Recommended. Thumbs Up!

Version 3.5 - 2016.04.26
- Improved alerts
Version 3.0 - 2016.02.08
- Added accuracy and performance calculations
Version 2.5 - 2015.09.15
- Increased signals chart history. Please update.
Version 2.2 - 2015.07.28
- Important bug fix in dashboard
Version 2.0 - 2015.07.27
- Added multi-timeframe dashboard