Best Indicators For Swing Trading: Enhancing 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:

1. The time frame is 1–10 days

2. We enter and exit at the close on the same day as the signal

3. We use symmetry in entries and exits, ie. the opposite signals

Let’s jump to the backtest and run an optimization of the RSI and see how it performs (Shown Below)

You can find more info about this trading strategy here:
https://www.quantifiedstrategies.com/which-is-the-best-indicator-for-swing-trading/

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