How To Scan Stocks For Swing Trading


I want to write a 12,3,3 Stochastics scan that sometime within X previous bars crossed BELOW the 20 AND THEN within Y bars crossed UP through the 20. If you have an idea for a scan but need it developed for you, check out thecustom PCF codingservice we offer. These types of sharp moves generally coincide with breakouts or sudden changes of character that can lead to continuation in the direction of the initial move.

time frame

Rather than riskily chasing the price higher, astute breakout traders patiently wait for the stock to retrace to a short-term support level. The first pullback after a breakout often provides a lower-risk entry point that leads to similar results as buying the breakout. Overall, the goal of a swing trading strategy is to maximize profits from short-term price movements, while minimizing risk in the market. Are you tired of the stress and uncertainty that comes with day trading? Looking for a faster way to profit than “buy and hold” investing? In this post, we reveal 7 proven swing trading strategies that have helped winning traders achieve consistent gains.


Swing traders should select their candidates from the most actively traded stocks and ETFs that show a tendency to swing within broad, well-defined channels. It’s necessary to keep a list of stocks and ETFs to monitor daily and become familiar with the price action of selected candidates. With thousands of stocks to choose from, I’ve found the best way to narrow down my universe of choices is through scanning. It saves a tremendous amount of time and I thoroughly enjoy the process. Both building the screens and then watching them populate with ideas, it’s like opening a gift each and every trading day. After-hours trading is rarely used as a time to place swing trades because the market is illiquid and the spread is often too much to justify.

Why Swing Trade?

Here is the downloadable TXT (right click – Save Link As) document which you can upload to a watchlist on TradingView and quickly scan through them on there . If you’re looking for a way to trade these types of stocks, consider the Trend Trading Strategy for High Momentum Stocks. US stocks showing high relative strength and large daily movement compared to the S&P 500.

volume and liquidity

TTM_Squeeze; it’s an indicator that can help traders find explosive moves within the market. The TTM-Squeeze can reveal stocks under market pressure getting ready to rise or fall rapidly, and the best part about it is that it’s free for traders to use. Simpler Trading Scanner; this scanner is designed to find exactly what you are looking for in the market. Any trader with any strategy can use a premium scanner to find the best trades out there. Strike Zone Mastery; traders looking to trade with a professional that day trades in futures and learn to spot entry signals to catch the big moves. Staked Profits Mastery Program; traders get monthly live trading sessions with Danielle Shay, where she mentors and teaches her stacked profits formula trading options.

Time, What Is Time?

If you want to decide how much “buffer” to give, you can use the Average True Range indicator and set your stop loss 1ATR below Support. And this is how The False Break can serve as an entry trigger into a trade. Downward Trend Line —“Sloping” area on the chart that shows downward selling pressure. Upward Trend Line —“Sloping” area on the chart that shows upward buying pressure. When the market is trending, it doesn’t go up in one straight line.

The radar was one of the game-changing battlefield technology in World War II. It allows you to find out the speed and position of your enemies without actually seeing them. 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. I initially attempted to go at it alone, through trial and error, but that was a big mistake that led to lots of headaches and costly trading losses. So, after donating plenty of tuition at the “school of hard knocks,” I finally decided to stop wasting time and money.

day trading

We’ll cover the entries on a separate section of this site. I have found that for trading, a lot of reversals happen in this area. So in order to create a focusin your trading strategy, it is helpful to narrow down your potential stock setups to one area on a chart.

Trading Quotes

Once you do that, I’ll personally send you an email with the first video. Get Started Learn how you can make more money with IBD’s investing tools, top-performing stock lists, and educational content. Get actionable tips and updates on swing trading every week in IBD’s Swing Trading column.

Be sure to it out as a primer for the content below. We also show you how to check which sectors are performing well. Trading stocks that are in a strong performing sector greatly increases your odds of being right. As mentioned before we need to stack the odds as much as possible in our favor.

The most important component of after-hours trading is performance evaluation. It is important to carefully record all trades and ideas for both tax purposes and performance evaluation. Knowledgeable retail traders can take advantage of these things in order to profit consistently in the marketplace. Here is what a good daily swing trading routine and strategy might look like—and you how you can be similarly successful in your trading activities. As for relative strength, basically every stock on the list is recently strong.

  • Ok, I forgot to mention the day traders that make up each of the individual candles but I think you get the point.
  • It is working fine I am able to earn easily 100k but need to improve.
  • Day trading scans offer a way to funnel that list into proper categories of equities that match your trading style or system.
  • The gains might be smaller, but done consistently over time they can compound into excellent annual returns.
  • There is no one indicator that is considered the “best” for swing trading, as different indicators may be more suitable for different traders and market conditions.
  • As you get comfortable scanning regularly, the number of stocks returned will serve as important market information.

More money as a starting balance will provide you with a larger cushion to ensure you don’t fall before exchange minimums for swing trading. The volatility in the stock market is always changing, so you should also conduct appropriate research about the volatility of a stock before initiating your very own swing trade. If you don’t have money to purchase a premium stock screener service, you might want to start out with a free web-based stock screener. The stock screener also has dozens of filters, including the ability to sort by active price, swing percentages, volume, and more. If you’re looking for an effective stock screener and real-time updates for a variety of markets and exchanges, then you will definitely want to consider Benzinga Pro. trading involves capitalizing on potentially large price movements that happen over a few days or a few weeks. Swing traders can use a number of different strategies to spot opportunities, but most traders rely heavily on technical indicators like moving averages to find trades. The MTG swing trading strategy, for example, is a trend-trading system that seeks to profit from explosive breakouts and lower-risk pullbacks in leading growth stocks. In certain market conditions, our methodology also focuses on momentum 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. I’m not saying a particular one is the best, they all have pluses and minuses. The extra time commitment of day trading comes with its own risk. Not having a steady paycheck makes a day trader’s income reliant on trading success.

Meaning its sales/revenue growth is as such and so is earnings per share growth. The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear.

A Relative Volume of 1 would be normal, we’re looking for stocks that are on par to trade at least double their average volume. We teach you the entire approach to swing trading with options and how to choose the best trading strategy in each and every market condition. In this case, we get 101 stocks that have met all of our criteria. With which you can do 2 things, go through all of the names and find out which ones look the best. Or you can filter for higher liquidity, which would mean increasing the volume criteria. With 2M we have 61 names that are crossing back above the 20 moving average to show us bullish strength.

Scan #3: Crossed Resistance With Volume

Traders who are patient and disciplined are more likely to be successful at swing trading. Penny stocks are highly volatile and riskful securities, and many times don’t even trade on a regulated exchange. Their thin trading volume also means that they often are subject to market scams, that will make the price surge quickly, and then crash in a very short time.

Bearish reversal candlestick patterns signify that sellers are momentarily in control. Swing trading is a trading methodology that seeks to capture a swing (or “one move”) in the markets. Also, I’m giving away one of my favorite How to Find and Scan for Stocks to Swing Trade strategies that work in trading the markets. Just fill out the yellow form at the top of the sidebar on the right.

I was finally on the path to developing my own winning swing trading system . I began my journey for the best swing trading strategy by reading books on various techniques and hanging out in trading forums . But finding quality trade ideas that fit my trade plan as an active trader is necessary, and that’s why scanning is so important and such a time saver. The Bullish Bears also send out a swing trade watch list each night with trade alerts.

Think of the charting software as a DVD player; once you have a DVD player installed, you will still need to rent DVDs to watch movies. Similarly, once you have a charting software installed, you will still need to feed it with data to view the charts. That being said, we understand that not every trader is going to have the same strategy, bias, or techniques.

To begin with, you need a chart visualization software, called the ‘Charting Software’. The charting software helps you look at the various stock charts and analyze the same. Needless to say, the charting software is an essential tool for a technical analyst. It will be up to you to run through the charts and identify your setups, volume, and other criteria you like. This is a perfect representation of how volatility and momentum complement each other. The extraordinary intraday swings create a myriad of opportunities for the nimble day trader.

With our Price Action Pattern Indicator for Ninjatrader, you can scan for the five patterns below. This code finds markets in which the HMA slope just turned positive, implying that a bull swing has started. It’s important to remember that swing trading is not a means to getting rich quick.

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