Swing Trading Software

Written by Michael Federico
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Swing trading revolves around uptrends and downtrends in the market. An uptrend is usually a sign that there has been a series of rallies that have pushed both market highs and lows higher. There are declines during an uptrend, but low-points are still above those of the previous sell-off. Downtrends create lower highs and lows. The increases that arise during this series of declines will still terminate at lower points than during the rally that occurred before.

Long swing trades exploit buying opportunities during an uptrend. Shares are purchased when a stock experiences a decline within a series of rallies. This allows a trader to buy at lower prices with the strong possibility that the price of the stock will increase during the next trading day. Short swing trades function in a very similar way, but they focus on stocks that are experiencing slight rallies during a downtrend.

Benefits of Swing Trading Software

Identifying trends in the market is not the easiest thing to do. Even people who have worked in the field for long periods of time have trouble interpreting what is happening on a day-to-day basis. However, swing trading software can latch onto those trends, and it can also identify stocks that are ripe for long or short swing trades.

There are software programs that are designed to anticipate slight pivots in the market. This will allow a trader to tap into opportunities that will be lost on most people. Swing trading systems make it possible for a person to wade through broad trends in order to find the details that will benefit him.

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