Swing Trade Scanner

We have really BIG and POWERFUL statistical analysis and pattern recognition server. I use RPG graph of stocks (AVAILABLE IN STOCKCHARTS.COM) as an additional tool to look at the stock. Created a trading plan for each stock in the focus list takes 5 minutes. When we scan, we often lose our “feel for the market” because we are focused on the “now” and haven’t participated in the day to day of the stock. Volume is particularly useful as part of a breakout strategy. Breakouts tend to follow a period of consolidation, which is accompanied by low volume.

If choosing between these two trades, we should always take the second one. Some may think that trade one is less risky because the stock price moves less. But over many trades, we are compensated much better for the risk we are taking by Trade 2, or trades like it. In both cases, we are risking $500 (this should equate to less than 2% of your account). With Trade 1 we stand to make about $1500, where with Trade 2 we stand to make about $3000, likely over the same amount of time. In fact, since high momentum stocks tend to move very quickly, that bigger gain may come even quicker than the $1500 gain in the slow-moving stock.

swing trading scanner setup

This particular alert happened on Kohl’s ($KSS) on October 31. The day closed with a doji/hammer look on the 20d to hold a retest of a former resistance level. So this was an ideal swing setup into the next day’s session. American International Inc ($AIG) is a great example here shown on the daily chart.

The Best Trending Stocks Screener

Hopefully, these scans have been helpful and give you some ideas to think about and experiment with further on your own. The following criteria are simply personal trading preferences of mine, so feel free to ignore or modify these conditions as you please. Now it’s important to note at this point that you will very rarely find any results with all of these filters in FinViz Screen. And you are able to find more FinViz features on the dashboard. A growth stock is a stock that has rapid revenue and rapid earnings growth.

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.

If I capture some % of the move, I dont really care – i see this as a store where you buy and sell inventory all day and have an idea what price you want. I think Walmart used to have rules where they sold inventory at 15% markup and Waltons became very very rich. Imo, endlessly scanning for stocks I dont understand or never heard of, seems silly when the mkt favorites provide endless opportunities.

Keep an eye on the economic calendar, which can help you determine the health of a nation’s economy, and potential trading opportunities or risks in the future. Using screeners you can identify a hot list of the best trending stocks on a weekly basis. These can be put together into a weekly watch list called “weekly trending stocks”. There is more than one way to find good names to swing trade using the screener! You can find weak, beaten-down names that have the potential to come back. Patterns are really important when you’re looking for swing trading plays.

The stock screener can give you strong investment ideas to buy this downside when it starts to show signs of recovery for long-term investments. A lot of stocks have been overvalued for some time and they still remain at those levels even with a lot of this downside. A lot of people are waiting to start buying into the stock market and they can do so efficiently with the use of Finviz. Find undervalued stocks in April 2020 or even later on Finviz for potential long-term plays with the use of the fundamental tool.

This makes them useful spots to identify so you can open and close trades as close to reversals as possible. An overbought or oversold reading doesn’t necessarily mean that a reversal is imminent – strong scan stocks for swing trading trends can stay in either territory for long periods. For this reason, many traders watch for when the two lines on a stochastic oscillator cross, taking this as a sign that a reversal may be on the way.

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. 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. A stock screener is a tool used by traders to identify stocks that match a certain set of criteria.

Moving Average Screener

Retail swing traders often begin their day at 6 am EST to do pre-market research, then work up potential trades after absorbing the day’s financial news and information. A high relative volume scan that alerts stocks that are seeing “punches” of volume on intraday time frames. While the scan can be used for intraday setups and day trades as well, I’ve found that these can result in some solid swing setups on daily/weekly time frames as well. The first two rules look for stocks that have been trending strongly over a period of four weeks, with the trend increasing over the past two weeks. 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.

Active traders may use stock screening tools to find high probability set-ups for short-term positions. Users can enter a varying number of filters; as more filters are applied, fewer stocks will be displayed on the screener. A swing trading indicator is a technical analysis tool used to identify new opportunities. Swing traders want to profit from the mini trends that arise between highs and lows .

swing trading scanner setup

When EOM rises above zero, it’s usually a sign that the market’s price is advancing with relative ease – and the further EOM rises, the more easily its price is advancing. As EOM drops below zero, it’s a sign that the market is falling with increasing ease. As mentioned, other methods can be used to profit from the market’s short-term swings.

Swing Trading Strategies

One way to identify the hot stocks that will move the best is to use a stock screener. We did an amazing introduction to our favorite three stock screeners. The time before the opening is crucial for getting an overall feel for the day’s market, finding potential trades, creating a daily watch list, and finally, checking up on existing positions. Break Outs is a classic Turbo Breaks scan that I tune to my preference. It alerts stocks that are making new highs (or new lows – alerts in red) on the session, and doing so while breaking out of an inside market. Additionally, the stocks that alert are seeing 10 times the average volume during the last 1 minute candle.

  • On the Trend Breaks how would you adjust the scanner to also watch for short trend breaks?
  • A trader should be well versed in the criteria and test how well a scanner actually screens to gauge how reliable it is.
  • Past results of any individual trader are not indicative of future returns by that trader, and are not indicative of future returns which may be realized by you.
  • Remember, many traders will simply place trades based upon earnings reports and nothing else.
  • Trading days with high volume start new trends or end old trends.

The key is that when a stock has a quality news report it should last longer than a day. You’re not looking for the $0.50 pop, you’re looking for the 1 – 3x move that’s going to happen, and the only way that’s going to happen is if there’s a substantial catalyst beneath it. Those types of news can be new product announcements, analyst ratings, new regulations, or other similar news factors. This example shows exactly what you want to be looking for when using Bollinger Bands in a swing trade.

Best Swing Trading Strategies For Beginners: Conclusion

A strongly up-trending market will lend itself better to different types of setups than if you were in a bear market. The larger the consolidation patterns you want to see, the larger your moving averages should be. Now hyperinflation that we have our universe of stocks chosen and basic filters in place, let’s get into the specific patterns we’re interested in. I only want to trade stocks that are at least moving an average of 30 cents each day.

How Do Stock Screeners Work?

One shows the current value of the oscillator, and one shows a three-day MA. Match ideas with potential investments using our Stock Screener. If you do not agree with the terms & conditions or privacy policy of this site, please leave immediately. By continuing to use this site and it’s information, products, and/or services, indicated your consent to adhere to our privacy policy and terms & conditions.

This is a great indicator to finding stocks that have unusually high options interest. These can lead to relatively bigger moves in the underlying stock price. This swing trading strategy requires that you identify a stock that’s displaying Venture capital a strong trend and is trading within a channel. 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 is an example on Altice ($ATUS) of a failed head & shoulders breakout. Price pulled back from the breakout to retest the former downtrend and the 50d on October 23. From there we saw rotation to the upside and nice swing trade opportunity for a pre-earnings run to sell ahead of their announcement. Check out this guide to learn how to scan for active low float stocks daily.

I have been looking for website or the indicator to see how the market move by section a long time but cant find this. It is beyond the scope of these forums to teach members how to use the platform… We’re here to help you learn the Thinkscript language itself… The How To Thinkorswim section has a lot of valuable information…

This code finds markets in which the HMA slope just turned positive, implying that a bull swing has started. UseThinkScript is in no way affiliated with TD Ameritrade or the ThinkorSwim platform. @joe362 All the studies that you have been asking about in the last few days can be used in the scanner. 5) Select stocks from you pre-screened list, and from the market segment that is currentely performing the best.

The information in this site is for educational purposes only and in no way a solicitation of any order to buy or sell. The author and publisher assume no responsibility for your trading results. This information is provided “AS IS,” without any implied or express warranty as to its performance or to the results that may be obtained by using the information. Factual statements in this site are made as of the date the information was created and are subject to change without notice. Prior successes and past performance with regards to earnings and income are not an indication of potential future success or performance.

That’s the only real way to get proficient creating your own custom scans… Then you can scan against different market sectors if you like… I enjoy playing in the scanners but I couldn’t describe everything I try or I’d be writing a longer book than this post is turning out to be…

For those traders out there you can find short opportunities on Finviz using the technical analysis tool into March 2020. The MACD crossover swing trading system provides a simple way to identify opportunities to swing-trade stocks. It’s one of the most popular swing trading indicators used to determine trend direction and reversals. The MACD consists of two moving averages – the MACD line and signal line – and buy and sell signals are generated when these two lines cross.

Author: Annie Nova