Swing trading and trend following is one of the best approaches to the stock market that you can use because it helps you capitalize on the big market moves without being suck in the market during crashes. However, there are so many different strategies you can use for this approach.

Here is one of the best swing trading indicators that you can use. The indicator is called the Moving Average Convergence Divergence or MACD for short. The strategy is called MACD Divergence plays.

MACD Divergence is classified as opposing trend directions between MACD and the stock chart near a support or resistance level. If MACD is headed in a downwards direction while the stock is trending up, then it is indicative of a reversal. The same is true of the inverse, if the MACD is trending up and the stock is trending down near a support level, a reversal is indicative.

A pet peeve of mine in the trading education industry is when people share strategies without sharing what markets the strategy works best in. The MACD Divergence strategy works best in range bound markets when the market is very sideways and up and down. This strategy doesn't work well when the market is trending: either up or down.

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