Swing Trade Screening Criteria


How to manage risk in swing trading which goes over this in detail. Your results may differ materially from those expressed or utilized by Warrior Trading due to a number of factors. We do not track the typical results of our past or current customers. As a provider of educational courses, we do not have access to the personal trading accounts or brokerage statements of our customers. As a result, we have no reason to believe our customers perform better or worse than traders as a whole. Because I’m writing this article during a significant market correction, these screens are fetching fewer stocks, and many of them are in the midst of a pullback.


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. Then, they typically use their trading strategy to look for buy and sell short setups in the respective groups. In building your screener, you can lay out your criteria – which we talked about earlier. Maybe your screener is based on momentum indicators to help you find stocks with great timing. Or, maybe your screener is based on leading stocks in a certain industry or sector.

In comparison to day trading, swing trading definitely has its pros and cons. At the very least, having the tools to make the occasional swing trade allows you to pull the trigger when the odds are in your favor. This is a complete method for swing trading stocks, revealed in step-by-step video format. If you try to trade a triangle pattern in an average stock, you will likely have poor results. This triangle strategy is meant to be traded in stocks that are already strong, in uptrends, with strong percentage performance to the upside.

When swing trading stocks it is essential to choose the right assets to trade, as bad market selection could be a major weakness in your trading strategy. Make use of these tips to enhance your market selection efforts. The Fibonacci retracement pattern can be used to help traders identify support and resistance levels, and therefore possible reversal levels on stock charts.

Moving Average Screener

So, as a https://business-oppurtunities.com/ trader, concentrate purchases on industry groups that are in the top 20 percent of the market. You can also identify promising candidates in industry groups gaining strength . If you travel or are unable to watch the markets on a day when you’re sick, stop-loss orders ensure that your portfolio value is preserved. If you didn’t have stop-loss orders, you’d probably fear ever being out of touch with your computer and the markets.

  • The following chart shows a couple of variations, or at least how they are drawn makes them look like a variation.
  • To find stocks that fit these patterns, consider moving average analysis.
  • I will even take trades if the consolidation forms just above the triangle.
  • Conforming a strategy to profit from larger trends while also tapping into a market’s more volatile candidates can reveal a wider selection of lucrative trading opportunities.
  • Also, determine your entry and exit strategy based off your swing trading signal.

If logging onto your brokerage account is a painful exercise you prefer not to do because you feel ashamed, swing trading may not be for you. Even when you’re down, you have to be optimistic that your profits will come soon. The one exception to this rule is for a security that achieves a significant gain in a short period of time. The industry group in which you trade is more important to your success or failure than which company you pick in that industry group.

In this case, we’re comparing the relative strength of sectors against the S&P 500. If the stock isn’t stronger than the S&P 500, then I will find something that is. The Cup and Handle Scanning process works well for finding these types of stocks. I take trades if the consolidation is in the middle to the upper portion of the triangle. I will even take trades if the consolidation forms just above the triangle. If the price consolidates at the bottom of the triangle, I usually won’t make a trade, because the price hasn’t moved up off the recent low to confirm the price isn’t dropping anymore.

Iron Condors: The Complete Guide With Examples and Strategies

The handle in the Cup and Handle pattern is often a triangle. I know time is limited, so here is a one-page summary of my triangle pattern trading strategy. There are thousands of Stocks to choose from and there isn’t enough time to search through all of them. There are also a lot of stocks that are horrible trading vehicles including stocks that are trading none to little volume. We use a Scanner or Screener to narrow down the selection of stocks we see and only show us ones that meet our specific criteria. Investors and clients should consider Schwab Equity Ratings as only a single factor in making their investment decision while taking into account the current market environment.

simple moving average

The 20-day moving average is a good barometer for the overall strength and trend in stock, if we close and hold below, then the bearish momentum could really take over. In the same way, you select stocks that have a valid sell short setup from the “potential sell short” group. The stocks that don’t yet have a valid sell short setup could be placed in the “watch list for sell short” and regularly monitored until a valid sell short setup forms in any of them. Once you’ve got your screeners running, you’ll start to see stocks listed that meet your criteria. Basically, I’m looking to enter on a lower high within an established long to intermediate-term trend and ride it back up for a few days. Sometimes these trades will turn into runaway trends, lasting weeks to months, but the majority are quick 2-3 day-long trades.

Its based on what I’ve learned from watching videos and reading online. So far its done a decent job of finding stocks that are starting an uptrend after a long down trend. Do you have any suggestions on how to tweak my screener to be more effective? Swing trading requires upfront capital to enter into a position. It also heavily relies on charting software and a technical analysis setup.

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.

However, the 13-period EMA has to below the 50-period EMA or cross below it. If you want more control over your swing trade scans, you’ll want to turn to the Pro Scanner. Here, you can easily look for price breakouts that occur in conjunction with significant movements in technical indicators. One of the other nice things about using the Breakouts module to look for swing trading opportunities is that you can search only your watchlist stocks rather than the whole market. This allows you to focus in on stocks that you’re already keyed into or on stocks from a particular market sector.

When possible I like to professional resume preparation services within the top two or three strongest performing sectors. During bull markets these sectors contain stock that trade high relative volume and are more likely to have explosive moves. Chart pattern breakouts become more reliable and more profitable during these times. Value investors seek out larger, more established companies that appear to be priced below the level that would be expected based on their revenues or earnings per share. Value investors often focus on companies that are leaders in their industry, even though their growth rates have slowed down, because they often pay steady dividends. Value stocks often have low price-to-earnings ratios and pay above average dividends but trade at a price that is very low or below their book value .

Support and resistance lines represent the cornerstone of technical analysis and you can build a successful stock swing trading strategy around them. However, swing trading strategies aren’t bound by the day-trading dictum that all positions must be closed by the end of the day. Instead, they hold trades for as long as the current momentum lasts. That could be less than an hour, or it could be several days.

Your job now is to use your strategy criteria to choose the stocks that have a buy setup from the “potential buy” group. You should place the ones that don’t yet have a buy setup in the “watch list for buy” and regularly monitor each of them until a valid buy setup forms. You’re not worried about the long-term potential of stock – your goal is to capitalize on those short-term swings in a stock’s price. You may find your greatest opportunities in a stock that is slowly headed towards the bottom – as you can get in and out on the little pumps on the way down, earning modest profits each time. Beginners swing trading guide goes over the fundamentals behind this strategy, too.

More importantly than just finding a good stock for swing trading is coming up with a strategy that is consistent and repeatable. You’re here to make a living from swing trading or create supplemental income as a side hustle. That means you need a process you can replicate time and time again with a high rate of success.

Learn to trade

Your profit target is often based on a previous support or resistance level. Your risk level represents the price that, if reached, forces you to acknowledge that your original thesis for trading the security is wrong. It may hit your risk level in a day or two just based on normal volatility. Other common swing trade strategies look at moving average breaks. To spot a moving average break, you’ll need to first decide what timeframe you want to look at. Our revolutionary system is transforming the way investors take part in the stock market.

Reasons Not to Buy a Stock details some additional things to avoid when swing trading this strategy. My Complete Stock Swing Trading Course reveals the whole process of finding explosive stocks to trade, including WHEN to trade this strategy, and when to back off. Schwab does not recommend the use of technical analysis as a sole means of investment research. As you search, be wary of high dividend yielding stocks, as they might be too good to be true. If you open a short position at a high, you’ll aim to close it at a low to maximise profit. Likewise, a long trade opened at a low should be closed at a high.

They form the basis of the majority of technical strategies, and swing trading is no different. Maybe you’re just a contrarian trader that trades based off sentiment. That’s perfect because creating a list of stock traders can help you gauge what the sentiment is for many retail traders on social media. When entering or exiting a trade, you should use a limit order rather than a market order. So be patient and you may get a better price than you originally thought. When trading based on a trading pattern like an inverse head-and-shoulders pattern, your profit target may be determined by the projection price implied in the chart pattern.


Be sure to choose only stocks that trade at least 500,000 shares per day. This would ensure that you can always buy or sell your couple of hundred or thousand shares whenever you trade. Ross Cameron’s experience with trading is not typical, nor is the experience of traders featured in testimonials. Becoming an experienced trader takes hard work, dedication and a significant amount of time.

The information in this site does not contain investment advice or an investment recommendation, or an offer of or solicitation for transaction in any financial instrument. IG International Limited is licensed to conduct investment business and digital asset business by the Bermuda Monetary Authority. Like the RSI, the stochastic oscillator is shown on a chart between zero and 100. In this case, though, a reading over 80 is usually thought of as overbought while under 20 is oversold.

Screening for Growth stocks

However, if you don’t want to make your own criteria, you can simply choose some preset ones like you can see below. There’s many more options to choose from than the ones listed in the picture, but here’s what “Complex mixed criteria example 1” looks like. It incorporates the RSI indicator, Williams %R, Pivot Points, and Vortex. If you want to add to it or change it, all you have to do is make a copy of it by clicking “make your own copy” and then you’re free to add or remove whatever you want from it. Although Finviz is useful free tool for screens, it is a bit limited in terms of complexity.

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