Generally, breakouts follow a period of consolidation accompanied by low volume. Volume is crucial when there is a breakout in the trend. As more traders buy or sell, it forms a better basis for the price action. Note: the indicator uses the NinjaTrader Swing indicator so the labels are not applied until the swing is confirmed according to the strength setting. Usually, a trend with high volume is stronger than one with weak volume. Volume is an important indicator in swing trading as it tells us about the strength of the ongoing trend. For analysts who choose to use the percentage price oscillator, a value outside the range of -10 to +10 is supposed to indicate a stock being oversold or overbought, respectively. When a faster Moving Average crosses a slower one from above, then the momentum may be reversing to a bearish move. When a faster Moving Average crosses a slower Moving Average from below then it indicates a bull move. Arguable, PPO is a better indicator than the MACD. The Percentage Price Oscillator is similar to the MACD oscillator. Swing traders use moving averages when a market’s short-term Moving Average crosses a longer-term Moving Average indicating that a change in momentum is taking place. The Percentage Price Oscillator indicator can be used on your trading platform charts to help filter potential trading signals as part of an overall trading strategy. Having discussed the basics of moving average, let’s see the use of this indicator in swing trading. 50 period: The 50 moving average is the standard swing-trading moving. Simple moving averages, which take all the closing prices of a specific period and averages them out, and Exponential moving averages that give more weightage to the price which is closer to the current date. The EMA gives more weight to the most recent price action which means that when. Moving Averages can be categorized into short-, medium- or long-term, based on the number of the periods such as 50- or 200-days moving average.
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