The SwingArm Indicator is a powerful tool that can be used for technical analysis in any instrument in the markets, including stocks, options, futures, forex, or cryptocurrency. The SwingArm represents price action in the form of a visual grid, showing traders where the price is coming from and where it is headed. It enables traders to visually identify value area zones to buy or sell and provides alert signals that do not repaint, helping traders to forecast possible areas of interest in the future.
The SwingArm Indicator is compatible with a variety of platforms, including the Trading View platform. The default settings are the ATR Period set at 28 and the ATR Factor set at 5. Users have the option to select the desired timeframe to be used, such as “CHART” or a specific timeframe, allowing for the viewing of price in a lower time and still seeing the areas of interest of the higher timeframe. This is a powerful feature that provides traders with huge levels of confidence as it provides significant insight into potential market bounces or turnovers from such zones.
The display setting “Session Time” allows users to select the beginning hour and ending hour of a highlight session on the charts. Traders should highlight 3 areas: from 8:00 AM EST to 8:30 AM EST for major news events that cause increased levels of volatility, from 9:30 AM EST to 10:00 AM EST for the first 30 minutes of the US Session market open, and from 3:00 PM EST to 4:00 PM EST, the last hour of the US session trading for stocks, another time in the day where volatility may increase. The price tends to move faster and either drop to test swingarm zones below when trending bullish, or move up to test resistance then trending bearish. These backtests provide either trade entry or scaling into a bigger position from optimal points of entry.
The SwingArm Indicator includes label options for swingarm break, swingarm trend step up or down, labels for each of the zones 2, 3, and 4 plus the swingarm timeframe label, the current trend label, and options to show the candle display such as heiken ashi candles vs regular candles. The label spacing option allows users to change this setting to move labels higher or lower on the chart. The alerts settings include options for the break of the swingarm, the break of the zones trending, or the break of each of the individual zones. My interest is always to focus on the break of the swingarm or the backtest of the zone 4 of the swingarm.
The Zone 4 labels show in either deep YELLOW (selling pressure) or BLUE (buying pressure), and the custom label text field is used to keep the focus on the opportunity based on higher timeframe pressure direction either bullish or bearish. The custom label size option is chosen to display the label in the “HUGE” size option when the zone to be reached is an extreme zone of a higher timeframe.
The Alert Selection – Time for Alert beginning and end times allows users to select the times they would like to be notified of the alert triggering. The SL (Stop Loss) Selection – SL Buffer can be adjusted based on the trader’s risk tolerance.
The default settings for the Overbought or Oversold RSI candles are left as default. On the style tab of the settings options, the only setting that is adjusted is the background color zone, which is used to display the three important times of the day.
Remember, it’s always best to consult with a financial advisor or other professionals before making any trading decisions. With the SwingArm Indicator, you can gain powerful insights into price action in the markets and make more informed trading decisions.
If you’d like to learn more about the SwingArm Indicator, please visit www.blackflagfuturestrading.com.
