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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If you are interested in trading using technical analysis, have a look at our reviews of these regulated brokers to learn which tools they offer:
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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 73.90%-89.00% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.