Scanning For Swing Trades


Otherwise, the chances are that you will keep repeating the very same mistakes over and over again. For example, you could choose to only a certain list of stocks, or include a volatility filter in the scan. Now, this is the step when you take your idea and see if there is any merit to it. Just code up your strategy in your trading platform, and run the backtest.

technical analysis

I run the scan, which usually produces a list of 300 stocks or less. I then manually go through looking for contraction, rounded bottom, or cup & handle patterns that meet the strategy criteria. Swing trading can be difficult for the average retail trader.

Overview of Swing Trading Scanners

Top 100 Stocks Today – find the 100 strongest stocks of the day. Some of these stocks may be breaking out of resistance and reaching a new high. However, it may be a good time to add some bargain stocks to your watchlist. Biggest Stock Losers – these are the biggest losers of the day. Some stocks have beaten so badly that it may be a good time to start watching them. Oversold Stocks – find stocks that are oversold based on the RSI indicator.

daily time frame

Has a lot of useful information on its website, including a stock screener that investors of all skill levels can use. You learn about thousands of different types of stocks and filter through them based on volume, signals, price, and much more. The proper use of a stock scanner depends on what you are using it for. Remember that a scanner is a tool that provides potential candidates to trade.

The being in a drawdown and managing losses doesn’t seem that hard to handle. Many fail because they simply can’t stand the emotional pressures that are involved with losses and drawdowns. You should journal your trades and thoughts that arise in a special trading journal. This is crucial since it’s hard to get the bigger picture when acting on the single trade level. For some strategy types, like mean reversion strategies, stop losses do harm performance, and some professional traders might even choose to not use them because of this. Slippage simply is when you want to enter a trade, but there aren’t any stocks for you to buy at the current price.

With your watch list scan, you should already be familiar with the stocks and their tradability, whereas many of the stocks on the universal scan may be completely foreign to you. Dave has been a part-time day trader and swing trader since 2011 when he first became obsessed with the markets. He focuses primarily on technical setups and will hold positions anywhere from a few minutes to a few days. Over his trading career, Dave has tried numerous day trading products, brokers, services, and courses. He continues to test and review new day trading services to this day.

It is hard to explain to beginners how to cut losses small and let profits run. At least when I first started trading, I never get it until I learned it the hard way. If you are approaching the market with a mathematical and logical mind, you may have a hard time succeeding in trading. Trading for a living doesn’t require a high IQ or a degree from an Ivy League school, but it requires a different set of skills. If you are interested in finding stocks with low float, check out the list of stocks with low float. Please keep in mind that low float stocks are highly volatile.

PLTR Stock Analysis with Ray and Richard

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. This guide covers an example that illustrates how to swing trade stocks using a Fibonacci retracement and helps you to identify your swing trading entry and exit points. These are more hands-on programs that can be time consuming to set-up for the user especially if programming knowledge is required, but the accuracy of the scans are the highest. Having the scanner monitor your 100 stocks in real-time compared to over 6,000 stocks makes a big difference. In addition to draining more resources and the timeliness of results, you will also have to contend with potentially a lot more candidates to analyze. Your customized desktop scanner may spit out 3 candidates within seconds of qualifying whereas an online scanner may spit out 50 candidates within minutes of qualifying.

  • The service provides 24 options picks per year, or 2 winning trade ideas each month under the Benzinga Options Starter package.
  • Quality is measured by the timeliness, accuracy and validity of the results in meeting your criteria.
  • We insert the strategy into the scanner, and can instantly see if we have any buy for that day.
  • The service provides stock alerts through recommendations on a set monthly schedule, allowing for easier timing on entry.
  • Let’s say you want to look for contracting markets, you can save running filter.
  • The second two rules then scan for stocks for which the daily candlestick is straddling the 20-day moving average, indicating a pullback from the trend that may just be getting started.

For his personal account, Roman Bogomazov uses swing trading almost exclusively. He has spent many hundreds of hours researching, analyzing and testing the materials covered in these sessions. It’s not possible, and extremely inefficient, to try to study all stocks in this manner.

Scanning for Pullbacks

And with so much advertisement, it’s not strange that these brokers manage to attract a lot of aspiring traders. What also impacts the capital you need, is the price of the stock you want buying. For example, there are stocks that trade for several thousand dollars each. Naturally, if your trading capital is only a few hundred dollars, those stocks are beyond your reach. We’re going to cover the tools you need, why the strategy is so important, how you build a strategy, as well as the more practical aspects of swing trading.

Trade setups get all of the talk and mention across social media and inquiring traders, but I would consider that one of the least important factors out of the entire framework above. Every weekend, we build a watch-list of leading stocks within top performing industries that are in healthy long-term uptrends showing high relative strength. Throughout this page, we’re going to dig into our discretionary trading process and outline our swing trading framework here at the Trade Risk. Swing trading is best suited to markets with high liquidity and low volatility. Examples include stocks, commodities, currencies, and indices.


Fibonacci retracement pattern can be used to help traders identify support and resistance levels, and therefore reversal levels on the charts. Traders often look at the 50% level as well, even though it does not fit the Fibonacci pattern, because currency pairs tend to reverse after retracing half of the previous move. Apply these swing trading techniques to the currency pairs, stocks, indices, or cryptocurrencies you’re most interested in to look for entry points. Utilising tools such as our pattern recognition scanner, you can spot trend reversals and other price signals to help inform your swing trading efforts. Scanning the markets with the simple scans above is the first step to finding swing trading setups. Do not jump into a trade just because your market scanner says so.

On the flip side, if the market is in a downtrend, you want to watch for sell signals from resistance. If the market is in an uptrend, you want to begin watching for buy signals from key support. For example, when an upward trend loses momentum, and the price starts to move downwards. Swing trading attempts to identify “swings” within a medium-term trend and enter only when there seems to be a high probability of winning.

Remember that the goal is to catch the majority of the swing. In order to calculate your risk as explained in the next step, you must have a stop loss level defined. By doing this, we can profit as the market swings upward and continues the current rally.

So remember to scan for swing trade opportunities; never go searching for them. We’ve detailed the scanning steps to identify and execute low-risk, high-potential yield trades in our trading strategies course. Consists of two moving averages – the MACD line and signal line – and buy and sell signals are generated when these two lines cross. If the MACD line crosses above the signal line a bullish trend is indicated, and you would consider entering a buy trade.

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.

If the MACD line crosses below the signal line a bearish is likely, suggesting a sell trade. A stock swing trader would then wait for the two lines to cross again, creating a signal for a trade in the opposite direction, before they exit the trade. 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. Another of the most popular swing trading strategies involves the use of simple moving averages . SMAs smooth out price data by calculating a constantly updating average price which can be taken over a range of specific time periods, or lengths.

You’ll want to keep an eye on other technical indicators and chart patterns to decide whether these stocks are likely to continue their previous upward trends. Instead, use your market radar to find swing trading opportunities efficiently. With a basic market scanner and a few lines of simple codes, you can generate a short list of swing trading opportunities in minutes. For me the best trades are ones that have large range breakouts with large relative volume. The idea is to sell into these large breakouts and then give the stock a couple of weeks to cool off and re set itself up.

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