Credit Spreads Swing Trading

Credit Spreads Swing Trading
Summary

Credit Spreads Swing Trading is a decision-support indicator designed to identify higher-probability put credit spread (PCS) and call credit spread (CCS) opportunities using trend alignment, momentum shifts, and volatility-aware structure.

The indicator works on any ticker and any timeframe, and includes multiple built-in ticker presets that automatically adjust internal parameters. While it will generate signals on all charts, the on-chart table displays a recommended context to indicate when the current symbol, timeframe, and session conditions match the optimized configuration.

Core Signal Logic

Signals are generated when multiple conditions align:

Momentum shift-
Identifies directional momentum changes that often precede short-term swing continuation.

Trend confirmation-
Ensures trades align with the prevailing trend and avoids counter-trend entries.

Higher-timeframe bias
Incorporates Daily and 4-Hour EMA structure to bias trades in the dominant market direction.

Relative volume filter-
Confirms participation to reduce low-quality signals during thin or inactive periods.

Cooldown logic
Enforces spacing between signals to prevent clustering and over-trading.

Credit Spread Direction & Structure

PCS (Put Credit Spread) signals are generated in neutral to bullish conditions

CCS (Call Credit Spread) signals are generated in neutral to bearish conditions

When a signal triggers, the script calculates a recommended short strike using recent pivot structure and displays it visually on the chart. This level is intended as a reference point for structuring a credit spread, not as an execution instruction.

On-Chart Table (Informational)

The indicator includes a compact table that displays:

Current signal type (PCS or CCS)
Recommended sell-leg strike
Average spacing between historical signals
How often prior sell-legs were crossed before the next signal (visual reference only)

Recommended context status

The recommended context row indicates whether the chart matches the optimized setup:
1-Hour timeframe
Extended hours enabled
Selected ticker preset matches the chart symbol (unless set to Auto)

This recommendation is informational only. Signals are not blocked when the chart does not match the recommended context.

Ticker Presets & Flexibility

Users can select from multiple built-in ticker presets (or Auto), which adjust internal parameters such as:

Momentum sensitivity
Volatility handling
Trend responsiveness

This allows the indicator to adapt to different instruments while maintaining a consistent signal framework.

Important Notes

This indicator does not place trades and does not include automated backtesting or performance reporting.

All statistics and visual markers are for manual review and contextual analysis only.

Signals are intended for experienced traders who understand options risk, assignment risk, and proper position sizing.

Intended Use

Credit Spreads Swing Trading is intended as a research and decision-support tool for traders who sell option premium and want structured, rules-based signals aligned with trend, momentum, and volume.

It should be used alongside independent analysis and disciplined risk management.