Using Advanced Hybrid Leading Indicators for Swing Trading The professional side of the stock market has undergone massive infrastructural changes in the past 5 years. These changes are unknown to most retail traders and that can pose major problems for you success and profitability no matter what trading style you use.
A trading style is a type of trading that has specific parameters to which strategies can be applied based on the current market condition. Currently, we have a Bottoming Market Condition that is poised to shift to a Moderately UpTrending Market condition.
The 3 sets of data used in stock indicators are Price Time and Quantity. Most retail traders use outdated price and time indicators from the 80's and 90's.
Unfortunately these indicators no longer work in the modern, millisecond transaction market which is dominated by Dark Pools and professional traders.
Hybrid Leading indicators use all 3 data sets in a complex mathematical formula that provides a leading indicator for you to use.
The Chaikin Oscillator is an excellent Hybrid Leading Indicator that has a CENTER LINE oscillation which provides more information about price direction, change of direction, duration of the run up or down and leads price.
An indicator that LEADS price means that it signals a day or a minute ahead of the change of direction of price on the candlestick charts. This is invaluable to swing and day traders who need to be able to quickly sell or buy-to-cover to net the highest profits from each trade while reducing risk factors of whipsaw action especially intraday.
Intraday traders must use indicators that signal ahead of the price direction change. Unfortunately, most traders are using outdated price and time cross overs which ALWAYS lag as the price must move down or up before the crossover can form on the indicator chart.
To improve your profitability start using center line indicators that have all 3 data sets within the mathematical formula.
