Swing Trading AFL

System Architecture: Two Sections

This AFL is organised into two _SECTION_BEGIN blocks — TSL (Trailing Stop Level) and SWING — each handling a distinct part of the strategy:

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TSL Section: Color Candles

Uses StochD(8,3,3), MACD histogram, RSI(3), and ValueWhen close comparisons to color each candle green (bull) or red (bear). This gives instant visual trend context without any manual analysis.

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SWING Section: TSL Signal

The HHV/LLV trailing stop (TSL) is plotted as a staircase line. When close crosses above TSL → Buy arrow. When close crosses below TSL → Sell arrow. Clean, simple, effective.

The Multi-Indicator Color Logic

Candle color is determined by a cascading condition check — making it one of the most information-rich visual signals in this AFL library:

Swing-Trading.afl — Candle Color Logic

// Bullish candle: MACD histogram > 0 AND RSI > 50
// AND StochD rising from oversold AND close rising
trendup = IIf(MH > 0
    OR (MH > 0 AND MH > Ref(MH,-1))
    AND RSI(3) > 50
    AND SD < 80
    AND SD > Ref(SD,-1)
    AND ValueWhen(C, O < C),
    colorGreen, colorWhite);

// Bearish candle: MACD < 0 AND RSI < 50 AND StochD falling
trendcolor = IIf(MH < 0
    OR (MH < 0 AND MH < Ref(MH,-1))
    AND RSI(3) < 50
    AND SD > 20
    AND SD < Ref(SD,-1)
    AND ValueWhen(C, O > C),
    colorRed, trendup);

Plot(C, "Close", trendcolor, styleCandle | styleThick);

Technical Specifications

StochD Period

8, 3, 3

MACD Periods

8, 21, Signal 5

RSI Period

Swing Param

5 (1–55)

TSL Style

Staircase (Teal)

Signal Arrows

Up ▲ / Down ▼

EMA Blend

EMA(3) + EMA(5)

Filter / Explorer

Buy OR Sell

Installation & Usage

Install the AFL

Copy Swing-Trading.afl to your AmiBroker\Formulas\Custom\ folder.

Apply on Daily Chart

Insert as an indicator on a Daily chart. Set the Swing parameter (default 5) — higher values make the TSL wider and catch bigger swings.

Read the Signals

Green Up arrow = Buy signal (close crossed above TSL). Red Down arrow = Sell signal. White candles = neutral/sideways — avoid new entries.

Trail Your Stop

Once in a trade, the teal staircase TSL line is your trailing stop. Exit when price closes below TSL (long) or above TSL (short).

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Pro Tip: Increase the Swing parameter from 5 to 8–10 for Nifty 50 blue-chip stocks to avoid minor pullbacks triggering exits. Use Swing=3–4 for more volatile mid-cap stocks where quicker exits protect capital better.

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Swing Trading AFL is optimized for daily and weekly timeframes. Using it on intraday (5min, 15min) will generate excessive noise. For intraday, use the Intraday AFL or ORB System instead.