Swing Traders

A Swing trader can also hold on to his trades as long as the trend goes in the right direction.

In the example below the Supertrend is applied. The Supertrend is a good trendindicator that holds on quite long to a trend, even if the market temporarily gets quite volatile. It is a good exit-indicator on clearly trending markets.

This indicator was developped by Olivier Seban, a french futures trader who applies the indicator on timeframes of 4 hours or on a daily basis.

If the red line of the Supertrend is below the grey line, the trend is positive. If the red line is above the grey line, the trend is down.

In our example the trader buys a position when the Center of Gravity is in the green. Note that the Supertrend indicator at that time indicates a downtrend. This is normal as a trendindicator is always lagging. After a few days the Supertrend is turning positive.

The position is closed when the trend afterward turn negative.

Note that a trader can stay in position for several weeks to months.