A swing chart shows you when a specific trading asset is likely to go higher or lower. It is a tool that takes a stock and the price you would pay for it. It does not necessarily mean that the stock actually hits the level it was trading for.
When making a trade, the trader might only need to look at the chart when a certain price level is reached. The “level” is a percentage, and in this case the top is 90%. It’s a bit of a mathematical exercise, but an essential tool in determining when your money should be placed in certain parts of a stock’s trading range.
How to make a swing chart?
First, decide what your goal is. Are you looking out for a specific company? Do you only want to go to the top and then go down as the stock moves lower? Are you looking for a specific time period or percentage? For example, you could look at data from a specific day, or time period and make a chart of a particular company’s recent highs and lows.
Next, select a way to show your data for further analysis. In this case, I used a stock’s price with a tick symbol. A move of 100% means you are 100% done with the trade at that point. A move of 95% means you are 95% done.
Lastly, you determine the format of the chart to include. Do you have charts like the one below, or do you choose to add other features? A tick symbol could be an indicator of future trends, or it could just be a way to visually show your data.
After you decide the overall look you want, you will need to choose an indicator to chart. The most popular way to create swing charts is by using a price action. This is where prices change on either side of your trend line. You then use that chart to determine whether or not you are at the top or the bottom.
This example shows a price action on the right. You’ll want to take a look at the direction of the price. If the price trend line moves higher, make your move higher. If the price trend line moves lower, make your move lower.
There are many, many different price action options that you can use to make a good chart. As I mentioned in my Swing Chart Tool post, you could use a simple price pattern to chart one stock or the next one.
Now that you’ve determined what your trade should look like,
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