Numerous technical indicators can help us interpret and act upon what the candlesticks are telling us. These are simple to use on today’s trading platforms.
Additionally, simple swing trading strategies can make highly profitable use of both candlesticks and indicators. Below, I outline a couple of common strategies.
Moving averages are simply an average of an instrument’s closing prices over a given number of periods. Moving averages are plotted as lines on the price charts.
What’s interesting is that traders often use these EMAs as areas to buy or sell. So for swing traders, EMAs become places to enter or exit trades. EMAs are so widely used they almost become self-fulfilling.
This is one of the simplest swing trading strategies. Both double top and double bottom partners occur when price tries and fails in two attempts to break a level of resistance (double top) or support (double bottom).