Simple Swing Trading Strategy

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 current or past students. As a provider of educational courses, we do not have access to the personal trading accounts or brokerage statements of our customers. My basic screening filters are quite simple yet very effective.

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. I love your scanners and I did have a question about one in specific. On the Trend Breaks how would you adjust the scanner to also watch for short trend breaks? Been trying different ways but can’t warp my head around it. Was thinking about having a clone version but for shorts if possible.

swing trading scanner setup

Momentum – These are some of the most used scanners by all day traders. Momentum scanners help find stocks that are trading at high relative volume with fast price movement. This typically points traders in the direction of volatile stocks with a lot of attention. Venture fund Ideally, these scanners can lead traders to find stocks that have the most potential to make a substantial move. It can also alert us to stocks with strong trends that can allow us to execute proper trading strategies with easy and identifiable levels.

This scan often produces breakout moves on alerts that typically see follow through on volume. The example below is of Kroger ($KR) shown on the weekly chart. Price alerted a trend break on September 3, which was a valid falling wedge breakout and a reclaim of an important support level. After that, that same support level ended up playing as a right shoulder to an inverse head & shoulders build.

Customizing Your Swing Trade Scans

I would recommend using a swing trading service at least until you can pick stocks reliably on your own. The idea behind swing trading is to use less capital and less capital per trade, hold it for a bit longer and collect those gains over time. With swing trading, you’re also not subject to the pattern day trader rule, which limits the number of trades you can make unless you have a whopping $25,000. Before you open up your trading software and make your 1st trade of the day, check out our list of the top-moving stocks making waves on the market today. Stock screener apps give you your first taste of what’s moving the market, and they look something like this.

Traders can use our stock screener to find breakout, momentum, and trending stocks as well as stocks that are currently trading at a bargain. Following are some popular stock scans that are included with our stock scanner. The Breakouts module is a great place for swing traders to start in Scanz.

swing trading scanner setup

In addition, if you don’t have Trade Ideas yet and are considering, you can setup everything up here using the promo code “TRADERM15” to get 15% off. It’s a platform & tool that I would definitely recommend to anyone who wants to see what’s moving throughout the market in realtime. So looking at the example below, you can see that $FLEX alerted several times on this breakout move early in the session. The daily chart shows a breakout of a compression coil that saw a strong move to fresh highs on a multi-day swing trade that may still carry higher.

Why Scan For Stocks In The First Place?

Familiarization with the trending patterns of what is being traded is helpful in determining the optimal entry and exit points. 1) Produce a pre-screened list of candidate stocks utilizing the FinViz Screener. This will produce a list of stocks that all meet your criteria for both safety and potential profitability. This may seem obvious, but to ensure efficiency it is prudent to make sure that your intra-day scanned stocks have a filter in place to output stocks with significant price moves. In order to profit from volatility, there must be volatility.

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. Trading involves a substantial degree of risk and may not be suitable for all investors. Past performance is not necessarily indicative of future results.

I look to see if the setup is really valid, what the risk/reward potential is, and also check if there are any earnings announcements or other things I should be aware of. So that’s how I trade setups on the daily, confirmation on the weekly and this will scan both the daily in the weekly for you. You can put parameters on both and the results are super fast; that’s another thing I love about this, the results come up and just pop up super fast.

I call this one the Top Stocks, because it captures stocks in uptrends that are closing in on former highs. 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. If you don’t have Trade Ideas yet and are considering, you can setup everything up here using the promo code “TRADERM15” to get 15% off.

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. Reprinted and adapted from Come Into My Trading Room with permission from John Wiley & Sons, Inc. The statements and opinions expressed in this article are those of the author. Fidelity Investments® cannot guarantee the accuracy or completeness of any statements or data. This reprint and the materials delivered with it should not be construed as an offer to sell or a solicitation of an offer to buy shares of any funds mentioned in this reprint.

Opts Vol Today Contracts – Total amount of options contracts traded on the day. Biggest Stock Gainers – search for stocks that made the biggest gains today. Some of these stocks may become tomorrow’s losers while other will continue their rally. Unfortunately I do not believe you are going to find anything satisfying for pattern recognition, and especially not for on chart drawing. 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. There’s no PCF code that I’m aware for scanning with it, you’ll need to create the conditions using the indicator drop down.

You can use candlesticks for buy and sell signals along with moving avenge lines. If you know anything about patterns and triangles then you know those are pretty profitable. Their green triangles give you a strong signal of a daily, weekly or monthly trend.

How To Use Bollinger Bands In Swing Trading

So, by starting small and adding on some of the support levels, you’re playing into the natural market progression of price discovery. The more that you add, the more you should tighten up your stop. If the trade goes against you, you could potentially lose more due to having more exposure. So, every time you add to a winning position, make sure you decrease or tighten up your stops so you don’t give those profits back.

But it’s very seldom my scanner show something I can trade straight away. I’ve tried to copy few scanners online , but none of them gives me stocks that I would like to enter. Either they scan stocks for swing trading already on the way down or results completely off from what I’m looking for. My preferred range is penny stocks, $, but I don’t mind taking more expensive stocks if the setup is good.

  • Leveraged trading in foreign currency or off-exchange products on margin carries significant risk and may not be suitable for all investors.
  • Whenever you use the Scanz Pro Scanner to search for potential swing trades, it’s a good idea to customize your scan to suit your trading style.
  • Having a tool like the barchart signal screener can set you up to have good success swing trading.
  • Factual statements in this site are made as of the date the information was created and are subject to change without notice.
  • Best of all, it only takes minutes per day to have a professional’s understanding of the market.
  • Although the volatility of the penny stock markets presents high-growth trading opportunities, it also presents larger risks.

A more complicated scan could include a number of additional criteria that really hone down on the type of stock/move the trader is looking for. Typically, swing traders enter a position with a fundamental catalyst and manage or exit the position with the aid Currency Risk of technical analysis. Let’s say you want to look for contracting markets, you can save running filter. So Bollinger Band contraction and then let’s just go down and look at this. See, a lot of these I wouldn’t even look at like the last price is 12 cents.

Top 5 Swing Trading Indicators

These are stocks that are likely to continue further downside while continuity remains. Solid Green Continuity is a scan that alerts stocks that are seeing green candles printing on the 1 hour, Daily, Weekly, Monthly and Yearly candles. Essentially, stocks need to be above their 50% range for the last 60 minutes, for today’s session, over the last 5 sessions, over the last 20 sessions, and for the year.

Can a Trade Ideas scanner be used for anything other than day trades? Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial investment. Risk capital is money that can be lost without jeopardizing ones financial security or life style. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Use the science of swing trading in your market scans, and practice the art of swing trading in your chart analysis.

Other Useful Swing Trading Tools

Major trendline breaks the go back a couple of years don’t happen every day, so when they do – you need to stand up and pay close attention to this as it can quite often make your entire year. It means that you are looking at an area that could be an interesting place to play a reversal candle. Now that you have a focus list, you need to know the entry trigger, stop and target placement. Having a plan leads to better decision making when it’s time to enter. Works on any timeframe and notifies you with a “ding” once a candlestick opens above or below a S/R line.

Macd Screener

There are a variety of methods traders use to capitalize on market swings. Vol 5 Min % – This represents how much volume is trading in the minute vs. how much volume is expected to trade in a 5 minute period. Vol 1 Min % – This represents how much volume is trading in the minute vs. how much volume is expected to trade in a 1 minute period. Chg Close % – The amount a stock has changed in the day vs. the last closing price in percentage terms. Gap % – The amount a stock moved up or down in pre/post market trading in percentage terms.

They are crunching numbers and trying to figure out how much a company will be worth in the future if it keeps growing. They may buy small companies aggressively because they are growing and will one day be big companies with big price tags on their stock. Therefore, this screen looks for momentum and trends in smaller companies that have growing sales. To find short trades, make the returns negative, and look for stocks below the moving averages. Assuming you know some trade setups or patterns, the next part of the equation is finding a stock that will maximize the potential gain on that setup.

Author: Lorie Konish

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