SwingConfidence™ is a scoring system that helps us decide position size in swing trading, & take sit-out-in-cash decisions in an objective way.
Here is the SwingConfidence™ tool where you can now calculate the score (on your own) daily:
@finallynitin/swingconfidence" target="_blank" rel="noopener" onclick="event.stopPropagation()">coda.io
Here is the SwingConfidence™ tool where you can now calculate the score (on your own) daily:
@finallynitin/swingconfidence" target="_blank" rel="noopener" onclick="event.stopPropagation()">coda.io
How to calculate SwingConfidence™?
It takes into account the swing states of the 2 benchmark indices (NIFTY, & CNXSMALLCAP).
It has 3 components:
⦿ Weekly Swing
⦿ Daily Swing
⦿ Concurrence
Let us understand them one-by-one.
It takes into account the swing states of the 2 benchmark indices (NIFTY, & CNXSMALLCAP).
It has 3 components:
⦿ Weekly Swing
⦿ Daily Swing
⦿ Concurrence
Let us understand them one-by-one.
Weekly Swing
Use the Simple Swing indicator on weekly charts of NIFTY & CNXSMALLCAP indices.
⦿ If the color of the weekly ribbon is green, we are in a weekly Upswing.
⦿ If the color of the weekly ribbon is red, we are in a weekly Downswing.
Use the Simple Swing indicator on weekly charts of NIFTY & CNXSMALLCAP indices.
⦿ If the color of the weekly ribbon is green, we are in a weekly Upswing.
⦿ If the color of the weekly ribbon is red, we are in a weekly Downswing.
Daily Swing
⦿ Early Upswing (close above red ribbon)
⦿ Confirmed upswing (green ribbon)
⦿ Upswing under strain (close inside green ribbon)
⦿ Early Downswing (close below green ribbon)
⦿ Confirmed downswing (red ribbon)
⦿ Downswing under strain (close inside red ribbon)
⦿ Early Upswing (close above red ribbon)
⦿ Confirmed upswing (green ribbon)
⦿ Upswing under strain (close inside green ribbon)
⦿ Early Downswing (close below green ribbon)
⦿ Confirmed downswing (red ribbon)
⦿ Downswing under strain (close inside red ribbon)
Scoring
You first need to select the Weekly & Daily Swing states for the 2 indices from the dropdowns.
If the daily swing states of both the indices are the same, then select the Concurrence dropdowns as *same* (in both indices), else select *different*.
You first need to select the Weekly & Daily Swing states for the 2 indices from the dropdowns.
If the daily swing states of both the indices are the same, then select the Concurrence dropdowns as *same* (in both indices), else select *different*.
How to use SwingConfidence™ to decide position sizing?
⦿ If the SwingConfidence value is 100%, then we go with full position size (1% capital-at-risk).
⦿ If the value is 0%, we sit out in cash.
⦿ Between these 2 extremes, we reduce/increase our position size accordingly.
⦿ If the SwingConfidence value is 100%, then we go with full position size (1% capital-at-risk).
⦿ If the value is 0%, we sit out in cash.
⦿ Between these 2 extremes, we reduce/increase our position size accordingly.
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