The Swing Index is a technical indicator that predicts future short-term price action:
- When the Swing Index crosses over zero, then a short-term price movement upward is expected.
- When the Swing Index crosses below zero, then a short-term price movement downward is expected.
A few of the many buy and sell signals are shown below in the chart of the E-mini Russell 2000 Futures contract:
As can be noted from the chart above of the e-mini futures contract, numerous buy and sell signals are given. The Swing Index was made for very short-term trading.
The Swing Index is best used in its later format, the Accumulative Swing Index (see: Accumulative Swing Index).
