The Swing Index is a technical indicator that attempts to predict future short-term price action:
- When the Swing Index crosses over zero, then a trader might expect short-term price movement upward.
- When the Swing Index crosses below zero, then a trader might expect short-term price movement downward.
A few of the many potential buy and sell signals are shown below in the chart of the E-mini Russell 2000 Futures contract:
As can be noted from the chart above of the e-mini futures contract, numerous potential buy and sell signals are given. The Swing Index advertises itself as a tool for very short-term trading.
The Swing Index is used in its later format, the Accumulative Swing Index (see: Accumulative Swing Index).
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