Best Moving Averages for Swing Trading (With Proven Strategies)

Discover the best moving averages for swing trading, with proven crossover strategies and practical tips to improve your trades.

Swing trading is all about capturing short to medium term trends in the market. One of the simplest and most effective ways to do this is by using moving averages.

In this guide, you’ll learn exactly which moving averages work best for swing trading, how to build moving average strategies, and how to apply them in your own trades.

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What is Swing Trading?

Swing trading aims to capture "swings" or trends in price that typically last from a few days to a few weeks.

Unlike day traders, swing traders aren’t glued to the screen all day but they also don’t hold trades for months or years like long-term investors.

Swing traders look for momentum and moving averages are a great tool to identify that momentum.

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How Moving Averages Help Swing Traders

A moving average (MA) smooths out price action by calculating the average price over a specific number of periods.

Benefits for swing traders:

• Identifies the trend direction

• Filters out noise

• Helps time entries & exits

• Acts as dynamic support & resistance

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Types of Moving Averages

• Simple Moving Average (SMA)

  • Average price over time — gives equal weight to all periods

• Exponential Moving Average (EMA)

  • Gives more weight to recent price — reacts faster

Swing traders often prefer EMAs for faster signals but SMAs work well on higher timeframes.

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Best Moving Averages for Swing Trading

Here are the most popular and effective moving averages used by swing traders:

• 5-period EMA

  • Very short-term momentum (entry trigger)

• 9-period EMA

  • Short-term trend following

• 21-period EMA or SMA

  • Core swing trend MA. Works great on daily charts

• 50-period SMA

  • Medium-term trend. Used as confirmation

• 100 / 200 SMA

  • Long-term trend. Defines major trend direction

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Moving Average Crossover Strategies

A moving average crossover happens when a shorter MA crosses above or below a longer MA which signals momentum shifts.

Popular crossovers:

1. 9 EMA crossing 21 EMA

2. 21 EMA crossing 50 SMA

Example:

• When 9 EMA crosses above 21 EMA → potential bullish swing

• When 9 EMA crosses below 21 EMA → potential bearish swing

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Example Swing Trading Setups

1. Trend Following Swing:

   1. Price above 21 EMA + 9 EMA pointing up

   2. Entry on pullback to moving average

   3. Stop below 21 EMA

   4. Target 2x risk or trailing stop

2. Crossover Swing:

   1. 9 EMA crosses above 21 EMA

   2. Confirmed by volume or MACD

   3. Entry after crossover closes

   4. Stop below 21 EMA or prior swing low

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Backtested Performance of MA Strategies

• Short EMAs (5, 9) give more signals but can be noisy

• 21 EMA + 50 SMA crossover tends to capture larger, cleaner trends

• Combining MAs with momentum indicators (like RSI) improves accuracy

Tip: Backtest your MA setups on your preferred market before trading live!

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Common Mistakes to Avoid

1. Using only one moving average without confirmation

2. Trading crossovers in a choppy, sideways market

3. Ignoring market context (trend, volatility)

4. Not using stops with leverage

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Moving averages are one of the most versatile tools for swing traders. They can help you define trends, time entries, and manage trades whether you’re trading stocks, futures, or crypto.

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*Disclaimer: Not Financial Advice. Investors should conduct thorough research and seek professional advice before making any investment decisions.

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