Systematic Swing Trading Model (2–10 Day)

The Systematic Swing Trading Model (2–10 Day) is a simplified institutional-style trend-following system designed to capture multi-day directional moves in equities, ETFs, and crypto.
It identifies moments where a strong trend, volatility compression, and a breakout event align — creating high-probability multi-day swing opportunities.

Core Components
1. Trend Structure (20/50/200 EMA Alignment)

The model only signals long when:

Price > 20 EMA

20 EMA > 50 EMA

50 EMA > 200 EMA

This ensures that trades occur only in established uptrends, avoiding counter-trend signals and reducing drawdown.

2. Volatility Compression (Bollinger Width Squeeze)

Periods of tightening volatility often precede expansion.
The indicator detects when Bollinger Band Width drops below a threshold, signaling a coil/reset phase in the trend.

This helps avoid late entries and identifies setups before the breakout occurs.

3. Breakout Detection (High-Based Break + BB Break)

A long entry requires price to break:

Above the squeeze zone

Above short-term structure (10-bar range high)

This captures early breakout momentum and begins the 2–10 day swing window.

4. ADX Trend Strength (Wilder Method)

A custom ADX engine (based on Wilder’s original formulation) confirms when trend strength is sufficient.
This prevents signals during low-momentum periods or chop.

5. Buy/Exit Signals (Visual)

The indicator plots:

BUY labels below the bar when all conditions align

EXIT labels above the bar when trend momentum is lost

This keeps charts clean and provides actionable, minimal signals.

6. Dashboard Panel

A compact dashboard summarizes:

Trend status

Volatility condition

Breakout readiness

ADX strength

ADX value

This allows quick system checks at a glance.

Ideal Use Cases

This model is designed for:

2–10 day swing trades

Daily timeframe signals

4H chart entry refinement

Trend continuation setups

High-momentum markets

Stocks, ETFs, crypto

It is not intended for scalping or mean-reversion environments.

Recommended Timeframes

Daily (1D) → main signal chart

4H → early entry confirmation

Weekly (1W) → macro trend filter