Swing Point Indicator

Swing Point Indicator

The Swing Point indicator for MT4 highlights the swing points created in the market.

The Swing Point Indicator for MetaTrader 4 highlights the swing points(SP) created in the market as the price moves from one zone to the other. Swing zones are levels of interest in the financial market because they tend to act as levels where the price may likely reverse.

Furthermore, swing points are also given special attention because they determine the probability of the price to keep trending to the upside or downside. For instance, the price may continue to push to the upside if it breaks out of a major SP.

What are the major swing points?
The major swing point of the price is termed a pivotal zone where the price is likely to reverse. Swing points are formed when the market prints higher highs and lows, which tend to become potential support or resistance levels in the future.

How to Trade with the Swing Point Indicator for MT4

The above image shows how the indicator for MT4 highlighted different swing zones on the EURUSD pair.

The blue line that runs across the chart highlights the swing point of the price in a zig-zag pattern. In other words, the indicator follows the price with a blue line to mark the peak and trough of a financial instrument.

The indicator marks both the major and minor swing points of an asset. However, the major swing points are more reliable than the minor ones. Therefore, it is recommended to use the major swing points to find trading opportunities in the market.

So, you may look for an opportunity to buy/long an asset after the price breaks the upper swing point (as illustrated above). Similarly, you may sell/short an asset when the price breaks the lower swing point.

Conclusion
The Swing Point Indicator for MT4 is recommended to be used along with technical analysis to identify better entry zones to buy/sell in the forex market. Finally, you can download the indicator for free.