Stochastic, MACD, Bollinger Bands Plus Day And Swing Traders
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Which Time Frame Is Best For Swing Trading?
This is an important swing trade question that all technical swing traders must know. However, to answer that question it is not that simple as it seems. Obviously a swing trader that is using the daily chart successfully will say it is the daily chart but another successful weekly chart swing trader will recommend the weekly chart instead of the daily chart. As you can see, it is normal that a swing trader that using the monthly chart successfully prioritizes that time frame. So we have to go beyond the swing traders' preferences to answer the question more correctly.
To avoid a long discussion, let me ask you a question: what is the ultimate goal of all successful swing traders? Think of it for a second. Get it now. That's right, the common goal is to have many successful swing trades. Right? YES IT IS. So would you agree that it is not the time frame that one is using that is the real cause of a successful swing trade but instead it is how one is using that time frame for swing trading. Commonly, swing traders use three times frame: daily, weekly and monthly charts. In my view, most old fashioned swing traders love the daily chart but I prefer the monthly chart because it allows one to see the bigger picture that many daily chart swing traders are not viewing. Hold that thought. I am not saying that one should not swing trade the daily chart. One should use the daily chart in conjunction with the monthly chart. For swing trading in my opinion and experience, the monthly chart is the best time frame.