Crypto Swing Trade Signals | Complete Guide

Most people find it extremely difficult to determine which markets are the best for trading, what time-frames to pay attention, where and how to get in, how to handle risks and how to make profits in this competitive market. Crypto swing trade signals provide you a comprehensive overview and help in achieving consistent and healthy trading returns. These swing trading signals also offer you benefit in real-time and enable you to see the market like professional traders and in the most transparent way.

What is Crypto swing trading?

Crypto swing trading is a useful strategy in which traders try to capture the moving price that happens in a short time frame. The main purpose of swing trading is to understand and capture market “swings” that play out over a couple of days to few weeks.

Swing trading signals and strategies are more helpful in trending markets. If there’s a high trend on a higher time frame, traders will have grand swing trading openings, and they can acquire benefits from larger price swings. However, swing trading can become more complicated in a consolidating market. This is because if the market is unpredictable or going sideways, it’s difficult to capture price changes. Check this blog All You Need To Know About Crypto Choe | 2023 Complete Guide for crypto choe information.

Do Crypto Swing traders actually make money?

As stated above, swing traders try to catch price swings that occur in the market from a few days to weeks. Due to this, swing traders hold and maintain positions longer than others.

Typically, swing trading includes in-depth technical analysis to produce crypto swing trade signals. As fundamental events last for weeks, so they might also use fundamental analysis while trading.

Despite that, there are many factors that traders must consider, such as price, candlestick patterns, support and holding power, and technical indicators for trading setups. However, the most used swing trade signals include moving averages, relative strength index (RSI), Bollinger bands, and the Fibonacci retracement tool.

Furthermore, swing traders also monitor medium to high time frames and charts. This is because a strong trend upwards or downwards has to be established on a high time frame. Similarly, sometimes they also monitor intraday time frames, like 1-hour, 4-hour, and 10-hour, to determine precise entry and exit points. These swing trade signals can indicate a breakout or a pullback, especially on a lower time frame.

However, according to most traders, daily charts are the most important time frame when it comes to swing trading. 

Note that all these are not strict rules but just examples.

Crypto Swing Trade Signals Types

Generally, crypto swing trade signals are classified into two types: those that are entirely free and those which are paid. So, what are the differences between these two crypto signals type?

Evidently, paid crypto swing trading signals are more useful and work for a wider index of services than free signals. It also helps in tracking the market’s algorithms and patterns.

On the other hand, free swing trade signals only provide a basic overview of the market and its health. However, some free crypto swing trade signals offer exact readings despite being free.

Here some of the primary factors to consider when deciding whether you need free or paid crypto signals:

Free swing trade signals are best if you are:

• An independent trader who can confidently trade;
• Aware of the consequences and impacts of market conditions on crypto trends;
• Available 24/7 to manage trading;
• Hesitant to use automated trading;

While paid crypto swing trade signals are best if you are:

• A beginner just learning to crypto trade;
• Not aware of market conditions and their effects;
• Not into the business of managing trading 24/7;

Free Crypto Swing Trade Signals

Free Crypto Swing Trade Signals work fine and perfect for all those who jumpstart the trade and still learn trading. However, as these are free, their platforms are not that wide, resulting in high traffic and delayed timing. When opting for free crypto signals, check them out thoroughly and pick the ones that do not compromise quality despite being unpaid.

Paid Crypto Swing Trade Signals

Some paid crypto swing trade signals are classified as scams, so be careful. Luckily there are many trustworthy paid crypto swing trade signals out there that you can use and take a good start. Paid ones are more reliable and effective than free signals.

This is because they come with more functions and features as compared to the free version, and all these features help in smooth trading. Before opting for the paid swing trade signals for crypto, we will advise you to test the provider’s free versions. You can check this article Best Places To Buy And Sell Cryptocurrency to find best crypto buying places.

Top 5 Crypto swing trading signals/indicators

• Moving averages
• Volume
• Ease of movement
• Relative strength index (RSI)
• Stochastic oscillator

Above are some of the most used and common crypto indicators of swing trades that every new and professional trader should know. Let’s discuss each of them in detail below:

Moving averages

Moving averages (MAs) identifies the actual mean of a market’s price trends and movements over a given period of time.

Moving Averages are classified as ‘lagging’ indicators as they look at the past price. Furthermore, they cover a longer period, and that is why they lag. As a lagging indicator for swing trading, these are mostly used to confirm the market’s tendencies instead of predicting the trends.

Moving averages can be short-, medium- or long-term, and it depends on how many periods they analyze.

One of the most useful and popular ways that swing traders utilize moving averages is to monitor whether the market’s short-term MA crosses a longer-term moving average. All such points are known as crossovers, and according to technical traders, crossovers indicate a change in momentum when they occur.

Volume

Volume is a vital signal or tool for all types of Crypto swing traders as it shows the accurate strength of a new market trend. The volume principle works in a simple way: it offers a trend with the highest volume and its power compared to one with weak volume. It provides all traders a better basis for the price action. A volume indicator is particularly useful in breakout crypto strategy. Breakouts include a period of consolidation accompanied by low volume. And when the breakout takes hold, volume levels spike.

Ease of movement

IG’s ease of movement (EOM) is another reliable swing trade signal that provides traders a closer look at volume by reflecting how it is related to price action. By using this indicator, you can quickly identify whether the market’s movements are driven by the low volume of trades.

The EOM indicator for crypto is planned on a chart, and its baseline is zero. When it rises above the baseline, it means that prices are going higher. Higher it goes means the price is advancing. When EOM drops below zero, it’s a signal that the market is dropping with increasing ease.

Relative strength index

Momentum indicators in crypto outline potential swinging into a broader trend; thus, these are more preferred among swing traders. Perhaps the best example is the relative strength index (RSI). This signal identifies whether a market is overbought or oversold – and also determines whether a swing is on the horizon or not.

The RSI in crypto also helps in measuring the number and size of a market’s plus and minuses close over set numbers usually; these are up to 14.[HA1]  It is shown as an oscillator: a chart that changes between zero and 100.

Example of RSI

If a chart is above 70, it means that market is overbought, which is a clear signal that it’s open on a short position. When the RSI goes below 30, it means that it is in oversold territory. For example, if a market trend is going in an upward direction, but the RSI is above 70, this uptrend can be turned into a bear market.

Stochastic oscillator

The stochastic oscillator is another momentum indicator that works like the RSI. In this oscillator, traders compare the closing price with the range of its prices within a specific period.

Like the previous RSI indicator, the stochastic oscillator is also presented on a chart between zero and 100. However, readings above 80 are classified as overbought for this indicator, while readings below 20 are oversold. Unlike the RSI indicator, the stochastic oscillator has two different lines on the chart. One demonstrates the current value of the oscillator, and the other one represents a three-day MA.

Example of Stochastic oscillator

Whether you have an overbought reading or oversold, it doesn’t mean that a reversal is coming up. Strong trends remain in both territories for much longer. Due to this reason, many traders monitor the chart of a stochastic oscillator and take it as a signal that a reversal can happen shortly.

Other useful Crypto swing trading Signals and tools

Although all the signals and indicators mentioned above provide a comprehensive overview of the crypto market’s trend, none of these gives a full picture of a market. For this reason, many expert swing traders also use support & resistance, and patterns when determining the market’s future trends and breakouts.

Support and resistance

Support and resistance levels are the spots in a crypto market’s chart that prices often have difficulty crossing. Furthermore, these are also used to create the base of various technical strategies, and the same applies to crypto swing trading signals.

When a market price comes down to a upport level, this is an ideal spot for all bulls. At this point, all bulls become active in the market, assuming that the market will rise again. Similarly, when the market hits an area of upward resistance, all bears enter the market to try their luck. This spot is useful for bears and allows them to identify open and close trades and remains close to reversals as much as possible.

According to the experts, the more times a crypto market crosses or reaches a support or resistance line, the stronger it becomes. And if the crypto market somehow moves beyond that area, it results in a dramatic breakout.

Patterns in Crypto Swing Trading

Swing trading patterns offer an early signal and indication of price. Patterns in crypto include several factors; some crucial factors to watch out for are mentioned below:

Wedges: These are mostly used to determine reversals. A falling wedge in a dropping market – or a rising wedge in a high market can specify an upcoming price reversal.

Pennants: These often result in new breakouts. Pennants often occur in a consolidated market and after significant price action.

Triangles: These work as a precursor during a breakout, especially when the patterns are invalidated.

Standard head and shoulders: Normally, you will see them inbear markets. Opposite ones may lead to uptrends in the crypto market.

Closing thoughts

Crypto Swing trading signals are effective in determining the right strategy. Furthermore, these are also useful when you are trading in the stock market. Swing trading is helpful for traders in the crypto market as it stays in positions for some days or a few weeks, depending on the market and trade setup.

Should you enter into swing trading or opt for other crypto trading methods? We will recommend you try a couple of them to check which one suits your trading style more and generates more profit.

Our experts recommend that all new traders learn and understand risk management before going into the crypto market. Having said that, crypto swing trade signals are handy and effective tools, no matter which type you use, and regardless of how you enter the market.

So, that’s all from the topic “crypto swing trade signals” and if you’ve any questions in mind, feel free to comment down below.

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