Swing Trading Strategies – ADX Indicator Trading Strategy & Moving Average Strategy
In this Swing Trading Strategies video I have covered ADX Indicator and Moving Averages based Trading Strategy recommended by Linda Bradford Raschke. This is a highly effective Swing Trading Strategy that is implemented on Daily time frame to Swing Trade stocks successfully.
I have begun this video by explaining in detail about ADX Indicator. I have explained how ADX Indicator should be used to assess Trend strength and not the direction of trend. ADX Indicator is plotted in the same window as Negative DMI and Positive DMI. I have explained how one has to interpret Positive and Negative DMI with respect to ADX Indicator.
This strategy by Linda Bradford Raschke revolves around Price Action, ADX Indicator and Moving Averages. I have explained this trading strategy in detail. She recommends choosing those stocks whose ADX Indicator value is greater than 30 for Swing Trading. I have also illustrated why one must include Beta criterion for Stock selection in Swing Trading.
For this Swing trading strategy I have explained Entry, Exit, Stop Loss with respect to ADX Indicator and Moving Averages. I have also explained why one must use Candle Volume Charts along with Relative Strength Comparative Indicator to get better results from this Swing Trading Strategy.
In the end, I have taken one complete example and explained from scratch how to implement this Swing trading strategy while looking at ADX Indicator, Price Action Analysis and Moving Averages. This is one of the simplest Moving Average Trading strategy that a Swing Trader can practice and implement.