Best Indicators for Swing Trading: Tools for Effective Market Analysis
One of the least known or used indicators is the best one for swing trading: Williams %R. We test six indicators and base our conclusions not necessarily on the highest return, but rather on the indicator with the best risk-adjusted return. Return must always be compared to the max drawdown.
We backtest the following trading rules:
The time frame is 1–10 days
We enter and exit at the close on the same day as the signal
We use symmetry in entries and exits, ie. the opposite signals
We backtest a specific swing trading strategy by using a two-day RSI and entry when the RSI drops below 10 and exit when it rises to above 60 (Shown Below)
You can find more info about this trading strategy here:
https://www.quantifiedstrategies.com/which-is-the-best-indicator-for-swing-trading/