TradingView Swing Trading Indicator

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In this video, we're going to talk.

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About our swing trading model and our swing trading levels indicator. Before we go into the settings and how to use the indicator, let's go over what the swing model indicator is and what the swing trading levels are.

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So what is the swing trading models.

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And how can we use it?

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So the first idea of the swing trading model is to replicate what we did already successfully with our one day expected move indicator. And we wanted to actually allow an accurate precision and an accurate forecast of where the price of an asset could be in five days and 20 days in the future. So one week and one month. By doing that, we can quantify risk and reward zones based on data. We can identify high conviction areas of support and resistance based on options data and not just really price action or past price action. And of course we can adapt that to any market so we can cover stocks, we can cover eth, we can cover indices and of course provide you with the data. The swing model is based on three components. We have our upper band, which basically would be the upper level of resistance that we see. And basically you it would come when we have a bearish bias. So the goal of the swing model is not only to give you areas of support and resistance, but also leverage the option data to provide you with a bias. Is the market bearish or bullish?

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And if that is the case, then how strong can that upper band or lower band hold and how successful can we be? So whenever we have an upper band, we have a bearish bias. When we have a lower band, our bias is bullish. So we should be looking for bullish setups. And then we also have our risk trigger. So the risk trigger would be the level on the opposite side. So if we have a lower band, the risk trigger will be above the lower band. And if we have the upper band, the risk trigger will be below the upper band. And the risk trigger is typically a volatility zone or an inflection point. The very important part is that we generate one key level per day. So on any given day there's only going to be either an upper band or a lower band. And of course you will always have a risk trigger. And basically that is very key. When we look at the bias on the left hand side, we see the swing model as of yesterday on gld. So on gold we have a lower band. We also have a green price.

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So whenever we have a lower band, the model is bullish. And on the right side you actually have the swing model 5 day for xpx and we see an upper band and obviously a red price on the right. So whenever we see the upper band, the model is bearish. Right? Very, very simple. Then what we do provide and we can go and look at the how to read the data. So if we have, if we have a bullish bias and the price five days or 20 days from now, close above the lower band, then the model is successful. So in this case the model is showing us a 287.51 level. If in five days from now the price of GLD closes above that level, that is a success for the model. So we're trying to predict the floor looking at the lower band and, and the resistance looking at the upper band. If we see a bearish bias. So if we do have an upper band and the price in five days or 20 days from now, close below the upper band, then again the model is successful. And at the top right of the screen you would see the success rate.

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So in this case you can see the success rate of the risk trigger. That means that the price should close below the risk trigger. In that case, for the model to be successful in five days or 20 days from now, you see the success rate of the upper band, you see the success rate of the lower band and then you see the total success of the model in any given time frame. We could have a period where we only have upper bands or a period where we only have lower bands. The model provides you the overall success of that period and we go back in this case 119 days. On 119 days, which is over four months of data, the model was successful on 88.24% of the cases. So okay, now that we understand the.

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Different components of the indicator, let's go into TradingView and let's see the indicator settings and how to use it on your chart.

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So the first thing you need to.

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Do of course is connect your TradingView account. If you haven't done so, we have a separate videos for it. Then you'll find the indicator under the indicator section, invite only and then mentor queue swing levels. Simply add this to the chart and this will bring up the different swing levels on the asset. Very important to note, we cover about 1200 plus stocks, ETFs and indices. The indicator and the swing levels are available for all our coverage on stocks, ETFs indices. If you're looking to use the swing levels on futures, we are going to go over how to convert those within the indicator. So simply by adding the levels they will automatically update it and you'll be able to see the swing levels directly into your chart.

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Now let's go and see what the.

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Different labels represents and what these levels are. First, let's jump into the dashboard. And what we plot on the swing model is kind of currently the swing model 5 days level for the past 5 days. So what you see, what you will see in the indicator would be this lower band risk trigger for the past five days on the asset that you're looking for. And we are plotting the five days swing model. So if we look back at the chart, what you can see here is the labels.

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So RT stands for risk trigger, LB stands for lower band and UB stands for upper band.

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So those are the three components of the indicator. Now let's go into the settings. The first thing you can do is.

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Define the position of the labels, whether.

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You want them left centered or right. You can also change the offset here. So this will move basically the labels towards the right hand side. You can also change the screen size of the labels.

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You then have the table settings where.

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You can add the table to the chart. You can position the table, you can define the size, or you can remove the table if you don't want to see it. Then we have our training roadmap. So the training roadmap allows us to build our plan using our swing levels. To enable the roadmap, simply click on.

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The box Create roadmap.

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You can also choose the color of the roadmap and this will change and you can also choose the ratio. So the ratio really allows you to customize how close together the levels are and on the roadmap and you can modify this and by changing the ratio, this will create a different roadmap based on the space between the different levels. So if you want more boxes, you can use a smaller ratio if you want. If you want larger areas, you can increase the ratio based on the asset that you cover. To disable the roadmap, simply click on the button and this will come out of your chart before we go into the levels conversion. So the ability to plot swing trading levels from an asset to a future.

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Asset or to another asset.

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Let's go all the way to the bottom and and let's look at the different settings for plotting the levels. So as we mentioned, we are plotting the last five days of levels. The swing levels are calculated after the market close at around 6pm Eastern time.

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So what we see here is the.

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Ability to plot our T minus 1 levels. This means that this would be the current level for today and are calculated as of the end of the Yesterday. So T minus 1, our T minus 2 will be calculated as of two days ago, our T minus 3 as of three days ago, and so on up to five days ago. And the reason why we show the last five days of data is because the model is trying to forecast the.

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Next five days of price action.

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So the levels that you're going to receive today are going to be valid for the next five trading days. So that's why we show you the the last five days of level. If you want to disable some of these lines, you can untick the box. And maybe if you just want to show the last day of levels, you can do that and you can have only that plotted in the chart. Or we can add all the 10 different levels just by selecting that. We can also change the color of each of these level type and and basically customize the settings of the indicator. Now let's go into our levels conversion setting and let's look at some of the conversion that we can do and why conversion is important when we look at swing levels. So as we mentioned, we provide swing levels on 1300 plus assets from stocks, ETFs and indices. Swing levels are currently not available on futures. So in order to to use swing levels on your future asset, you could convert the levels coming from the index or the ETFs. So we are gonna look at how to do that. So a typical conversion would be plotting SPX swing levels on es.

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So I can simply tick this box and I can also use different conversion ratios. We can use our auto ratio which will automatically take the end of day pricing and calculate the conversion for you. Or we can use a manual ratio where the user would need to manually input the value for the ratio. Another typical conversion would be to plot QQQ levels on nq. So I can simply choose that, choose.

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The ticker, tick the box and basically.

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Now we can go and see the different levels on the future. So if we go on es.

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We.

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Can now see our SPX swing levels right there. And if we go now on nq, we'll be able to see our QQQ converted swing trading levels as well. And yeah, so that allows you to plot the levels coming from one asset to the other one. There are also other conversions that are typically used by our users. So for example, one typical conversion could be GLD string levels on gc. So I can go here and just do the simple conversion and then I can open up my GC future sticker and look at the swing trading levels. From GLD uploaded on my futures gold ticker.

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There are other conversions that are possible.

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For example, we could plot USO ETF levels on crude oil. We could plot IBIT swindering levels on Bitcoin. So there's many, many options for you and the indicator is completely flat maximum.

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The best thing is really that what we believe our swing model is truly unique because it's really versatile and it can be used by different trading styles. So whether you are a day trader, a position trader or an option seller, or even like a long term investor, you can use the model to potentially predict where the price could be in five days or 20 days in the future. You could actually use the model for sentiment. So if you are a day trader, for example, you could look at our swing model to find critical points that could serve as intraday support and resistance levels. And these are not just arbitrary lines, they are data driven inflection points that are derived from our option data and our machine learning model. So by knowing these levels you can actually place maybe stop and targets, right? Reducing your risk and increasing your risk reward. So that's how, for example, as a day trader you could potentially use the model. If you are a swing trader, then obviously we develop this model thinking about your workflow in our mind. And the 5 days and 20 days model really aligns with your time frame.

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So you are looking for maybe a one week or a month positioning and and again you can get some really very important level that can help you understand where the price could be in five days or 20 days in the future. So that will allow you to potentially plan your workflow and also look at data when building a plan. Then we also thought about option traders, right? So if you are an option seller, this could be a very, very important model that you can leverage. So one of the biggest challenge in selling premium is knowing where to place your strikes, right? So basically our upper and lower band can provide you with ideal boundaries for credit spreads, iron condors and other strategies that are related to premium selling. So very, very important. And once we go back with Dan, we're going to look at that. So basically really is giving you an idea of where your strike should be, similar to what you do with a zero DTE data, you could use this data to potentially plan your strikes accordingly. And finally, if you are simply a long term investor, so if you are really investing and you are not day trading or swing trading, but you're really taking position on an asset, whether it's a Stock or an ETF, our larger model, our 20 days can really help you understand price levels, understand where the risk can be, also understand when things change.

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Right. So when we see like the model changing from bullish to bearish, then maybe if you have a big position there, you could use that data to potentially protect yourself, maybe like buying some puts or maybe like adjusting your risk manager. So basically the key part is that really this model can be used by really any type of trader that are looking to find direction of the asset in the market.