- Swing Index is used to compare a price movement to price swing
- The purpose is to defining the strength of price movement.
- Positive SI reading can be a sign of a price up-move and negative SI readings considered as a sign of price down-move.
- Swing Index is based on the 2-bar data
- I prefer to use SI on shorter time frames as it is only reliable to predict just several bars into the future.
Signals:
- Buy signal: when the Swing Index crosses over zero. (Duration of trade only next few candles)
- Sell signal: when the Swing Index crosses below zero. ( Stay in trade or change SL after only a few candles)