How To Scan For Swing Trades

scan for swing

Seek the services of a competent professional person before investing or trading with money. These results are based on simulated or hypothetical performance results that have certain inherent limitations. Unlike the results shown in an actual performance record, these results do not represent actual trading. Simulated or hypothetical trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to these being shown. The information contained in this post is solely for educational purposes and does not constitute investment advice.

swing trade stocks

You can choose many timeframes from – 1 minute, 5 minutes, 10 minutes, 15 minutes, EOD, Weekly, Monthly, and Yearly. There are many data vendors in India, giving you access to data feeds. I would suggest you look upon the internet for reliable vendors. You need to inform the data vendor which charting software you have, and he will provide you with the data feeds in a format that is compatible with your charting software.

We’ll get into the various price action signals in the next step. Well, now the breakout traders are “trapped” as their long positions are in the red. Keep an eye on the economic calendar, which can help you determine the health of a nation’s economy, and potential trading opportunities or risks in the future. Start swing trading to potentially profit from your trading edge.

As always it’s very important to make sure that these trading costs are kept to a minimum. Also, the bigger your trading account is, the less of an issue they become for you. With bigger trading volumes you tend to get better commission deals, and the other costs become a much smaller share of your total account size. Slippage- This is when your trade is not executed at the price where you placed your order. This could be because the market moved slightly during the time it took for your order to reach the exchange, or because there were no bids at that price. In order to succeed in today’s markets, which are becoming ever more competitive, you need to have the ability to ascertain what works and not on your own.

The following daily chart shows a rising trend channel. The price tends to rise off the lower trendline and falls from the upper channel. Finding a profitable style has more to do with your personality and preferences than you may know. In fact, if your chosen style doesn’t fit your personality, you are bound to struggle. The key points below will help you decide if swing trading is right for you.

However, this requires using your own swing trading strategy to identify trading opportunities. You can just as easily outsource your swing trade stock picks to swing trade alerts services well-versed in technical analysis and swing trading strategies for you to buy or sell. The MACD crossover swing trading system provides a simple way to identify opportunities to swing-trade stocks. It’s one of the most popular swing trading indicators used to determine trend direction and reversals. The MACD consists of two moving averages – the MACD line and signal line – and buy and sell signals are generated when these two lines cross.

What is swing trading?

It represents a price level or area above the current market price where selling pressure may overcome buying pressure, causing the price to turn back down against an uptrend. In this case, a swing trader could enter a sell position on the bounce off the resistance level, placing a stop loss above the resistance line. This swing trading strategy requires that you identify a stock that’s displaying a strong trend and is trading within a channel. If you have plotted a channel around a bearish trend on a stock chart, you would consider opening a sell position when the price bounces down off the top line of the channel. In this case a swing trader could enter a sell position on the bounce off the resistance level, placing a stop loss above the resistance line.

The first pullback after a breakout often provides a lower-risk entry point that leads to similar results as buying the breakout. Past results of any individual trader are not indicative of future returns by that trader, and are not indicative of future returns which may be realized by you. Neither the author nor publisher assume responsibility or liability for your trading and investment results. This site and all information therein is provided for informational and educational purposes only and should not be construed as investment advice. The author and/or publisher may hold positions in the stocks, futures or industries discussed here. You should not rely solely on this Information in making any investment.


Naturally, this requires a holding period that spans a few days to a few weeks. The endless number of indicators and methods means that no two traders are exactly alike. Some days you will find several quality trades when you scan, other days you will find none. Stay strong, and make sure you only take trades that align with the strategy. Not having a trade is better than taking a crappy one that will lose you money. For Average Volume, select Over 100K. We don’t want to trade stocks with very little volume.

Based on the previous move, where the price bounced off the support and started form a short-term uptrend, we think the price could continue to rise and break through the resistance. The target price would be at the next resistance level. Any style of trading, from day trading to position trading, carries a certain level of risk.

How to pick stocks for swing trading

I’m not saying a particular one is the best, they all have pluses and minuses. This community is devoted to the teaching of strategies, trades, resources and lifestyle that help traders become consistently profitable. There is an absolute “No Troll” policy – this sub is an environment where traders can learn and help each other. The way trading is currently taught has caused tremendous damage to people who are just trying to better their lives, and has no place in this sub.

day traders

As with any of investing or trading, it’s good to be diversified. In swing trading, it’s better to spread out your risks on more stocks, than to only take a few positions. MultichartsMulticharts is a trading platform that’s very similar to TradeStation in several regards. You can use it to scan for trading signals, and also perform advanced portfolio backtests. However, Multicharts is only a trading platform and requires that you connect to a live data stream. If you want to perform your trades through the Multicharts, you could also connect to a broker of your choice.

How to swing trade stocks

I’m only interested in trading stocks over $8 in price. We also want to make sure the stocks we’re looking at trade with sufficient daily volume. The first step in scanning is deciding what your overall universe of stocks will be. They have a free web version available called Freestockcharts but they’re flagship product TC2000 does require a subscription. If you’re not already a customer be sure to usethe Trade Risk’s affiliate link, to receive the latest promotional pricing. Many of these support your ability to open an account with beginner stock trading app with apps like Robinhood, Webull or others, or even a fully-featured offering like TradeStation.

To calculate RRR, I first establish the target by plotting either the support or resistance level. He provides his Tim Alerts daily newsletters with penny stock picks every market day around 8am EST / 5am PDT with a set of stock watchlists for the day. You can receive this by email, SMS or even push notifications in real time throughout the trading day. The “pattern recognition” tool sends alerts when stocks are making new highs or lows, breaking volume averages, and more.

  • Mean reversion traders typically use statistical tools such as Bollinger Bands to find stocks that are trading outside of their normal ranges, then determining when to buy and sell.
  • There are a variety of methodologies to capitalize on market swings.
  • Visit our article on ‘what is swing trading’ to learn more about the theories that drives swing trading to be one of the most popular trading strategies.
  • Benzinga Pro is built for traders and investors to receive actionable market news and research in real time.

The trend channel trading strategy is effective and highly visual. Looking for trend channel trade doesn’t take very long. This strategy can be implemented in 20 minutes once a week or several times per week. It will take longer at first, but once you know what to look for, it doesn’t take up much time at all.

One of the limitations, I’ll mention this, is this is only for – that’s called stock fetcher, so it does not work for futures or Forex. Again, at least at the time of the recording, it’s only for US stocks. I don’t believe it covers stocks outside of the US market either. One of the cool things though so this is great for swing trading, and, because that’s how I swing trade, I day trade during the day and then I do swing trading during the after-hours.

If a valid channel trade is still presenting itself after the earnings announcement the trade could be considered. For something like this, I would jot the stock down, along with the earnings date, and then take a look at it after earnings. Steps 1 and 2 showed you how to identify key support and resistance levels using the daily time frame. There is a very high degree of financial risk and loss involved in trading securities. Presenter assumes no responsibility or liability of any kind for your trading and investment results. It should not be assumed that any trades or investments described or discussed in this course were, are, or will be profitable.

As soon as a viable trade has been found and entered, traders begin to look for an exit. Many swing traders like to use Fibonacci extensions, simple resistance levels or price by volume. Ideally, this is done before the trade has even been placed, but a lot will often depend on the day’s trading. Moreover, adjustments may need to be made later, depending on future trading.

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