How To Scan For Swing Trades


As such the sector selection is a type of strategy filter, where you only trade stocks of the currently most promising market sector. Breakout strategies are quite similar to trend following strategies. In other words, exactly as with the trend following strategy type. There are many free alternatives on the market that will let you view charts, and sometimes even send orders to your broker. In addition to those stand-alone solutions, most brokers offer some kind of platform where you can execute your trades and get access to market data.


Your personal trading assistant – Pi’s ‘Expert Advisor’, keeps you informed about the patterns being developed in the live markets. Advanced Features – Pi has advanced charting features and includes 80 built-in technical indicators and over 30 drawing tools. It is bundled – Pi is a charting software and a data feed package bundled into a single software. Now, if you are in no mood to spend so much for the charting software & data feed combination, there is another alternative. A few online free charting tools are available that you can use – these are available on Yahoo Finance, Google Finance, and pretty much all the business media websites. However, my advice to you is – if you aspire to become a technical analyst, get access to good charting software.

Some swing traders like to keep a dry-erase board next to their trading stations with a categorized list of opportunities, entry prices, target prices, and stop-loss prices. Building a Trading StrategyOnce you have your swing trading platform up and running, you should not start trading right away. You need a swing trading strategy that’s tested on historical data to ensure that it works. Far too many traders use trading strategies that don’t have an actual edge, and finding one takes time and effort.

Your stop loss must be at a location where if reached, will invalidate your trading setup. Increase the size of your stop loss so you can withstand the “noise” of the markets and watch the market move in your favour. This means your analysis might be correct but you still end up losing money because your stop loss is too TIGHT. And this is how The False Break can serve as an entry trigger into a trade.

The information for this event is being provided for informational and educational purposes only. Keep a tab on global markets – for example, if there is a sudden drop in the Hang Seng it invariably leads to a sudden drop in local markets. A risk-reward ratio of even 0.5 to 0.75 is acceptable while scalping. Remember the checklist we have mentioned but do not expect all the checklist items to comply as the trade duration is very low.

Sector Trading Strategies

This ability is exactly what a swing trader needs with the vast number of financial markets out there. Looking for trading opportunities by poring over charts manually is primitive and inefficient. One of the most difficult aspects of trading is identifying profitable trade opportunities. Though, swing trading also requires time and attention to identify trades and vet them for trade setups and load them into your trading platform.

  • This strategy finds pullbacks in trending markets, which are the best swing trading setups.
  • Unlike the results shown in an actual performance record, these results do not represent actual trading.
  • Make use of these tips to enhance your market selection efforts.
  • Trade type – Positional trades with an option to square off intraday, provided the target hits the same day.

Each average is connected to the next to create a smooth line which helps to cut out the ‘noise’ on a stock chart. The length used can be applied to any chart interval, from one minute to weekly. SMAs with short lengths react more quickly to price changes than those with longer timeframes. FinViz is a reliable stock screening platform that has a plethora of different tools.

This may entail the comparison of averages in sequence, moving-average crossovers and longer-term price changes. Swing traders next seek pullbacks with tools including Keltner Channels and short-term price changes. Swing trading is a technical-based trading system that attempts to buy low and sell high. Swing traders seek multiday or multiweek trends in the stock market in hope of entering positions as they base and turn higher. Let us now proceed to understand how one should go about selecting stocks for trading. In other words, we will try and identify a process, employing which we can scan for trading opportunities.

Stock Trading

Day traders’ shorter time frame means they don’t generally hold positions overnight. As a result, they avoid the risk of gaps from news announcements coming in after hours and causing a big move against them. Meanwhile, swing traders have to be wary that a stock could open significantly different from how it closed the day before. Here are some good solutions on the market that let you scan lists of stocks. I created an almost identical swing trade method as you, without ever meeting you. I have done the uptrend channel method for a year and a half.

If you’ve got a lot of capital you plan to place at risk, this investment is a no brainer. The powerful service allows you to access real-time streaming trading ideas on simultaneous charts to learn how to trade into risk-reward balanced trades. The currency pair of the franc against the dollar is now moving around an important resistance price level on the H2 chart.

This has been a popular request for years and I’ve spent many hours trying to code different solutions but they’ve all fallen short. Hopefully, these scans have been helpful and give you some ideas to think about and experiment with further on your own. I found the volume filter above didn’t quite do the job by itself because there could be a 1 day event that skewed the 20-day volume calculation into a false positive. By making sure there’s always a minimum of 200K shares trading each day, we’ll avoid this loophole.

Art of TradeStation: Getting Ready for Earnings Season

“Expert” analyses are reserved for Premium members as well. This plan includes a screener letting you filter by average analyst rating and gain access to listen to conference calls and other presentations. Premium costs $119 for the first year or $349 for the first two. Access more premium content, author ratings and performance to get ideas for your next investment. In addition to diverse, deep-dive research articles, Seeking Alpha’s website has fundamental analysis tools, a Trending News feed, crowdsourced debates, and market data. Seeking Alpha’s Premium subscriptions provide access to the service’s Stock Quant Ratings.

Let’s start with the basics of a swing trading strategy. Rather than targeting 20% to 25% profits for most of your stocks, the profit goal is a more modest 10%, or even just 5% in tougher markets. Think of drawing key support and resistance levels as building the foundation for your house. It’s impossible to identify favorable swing trades without them. The strategy involves discovering stocks following an upward path.


A strongly up-trending market will lend itself better to different types of setups than if you were in a bear market. By using multiple length moving averages and checking to see if they are converging onto one another, we can get back stocks that have been trading sideways. There are lots of ways we can write our scans based on this definition, so we’re going to choose to usemoving averages. I prefer liquid stocks that trade an average of 300,000 shares per day based on the last 20 trading days.

Next steps to consider

If you want to know how to draw support and resistance levels, see this post. As a general rule, price action signals become more reliable as you move from the lower time frames to higher ones. I’ll get into some of the pros and cons of both, but first let’s take a look a simple 6-step process for swing trading. On the opposite end of the spectrum from swing trading we have day trading. In fact, attempting to catch the extreme tops and bottoms of swings can lead to an increase in losses. The best way to approach these trades is to stay patient and wait for a price action buy or sell signal.

There are a variety of methodologies to capitalize on swings. Some traders prefer to trade after the market has confirmed a change of direction and trade with the developing momentum. Both approaches can be profitable if implemented with skill and discipline over time. Press here to find out more and to start receiving the best stock swing trade alerts with a simple, “no nonsense” trading strategy that works. If you have any questions, just press the chat icon on this page.

After more than a decade of trading, I found swing trades to be the most profitable. Before I show you some examples using swing trades, let’s define the two types of levels. They offer a bigger picture of what’s happening with the price action and provide more reliable signals. If I like the channel and the price is near it, I will take trades once the price starts moving above the last candle high or two. Quite often that will mean a consolidation of 2 to 3 days or sometimes a bit longer.