Scanning For Swing Trades

Scanning For Swing Trades

julio 22, 2022 Forex Trading 0

trading opportunities

Remember that it only takes one good swing trade each month to make considerable returns. Forex swing trading is one of the most popular trading styles around, and for good reason. In most cases, the market won’t take off in your intended direction right away. Drawdown is something all traders have to deal with regardless of how they approach the markets. That means for every 1% of my account balance at risk, I stand to make a 3% profit. Keep in mind that I’ve tried just about every trading style and strategy under the sun.


  • I’m really starting to hate that this is what everyone says around here.
  • We will be looking at several of the best stock screeners for swing trading that can currently be used in 2022.
  • In the below video, I walk you through how to use the Barchart Screeners to find trade ideas.
  • 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.

You don’t want to be alerted of a candidate long after it has completed where you may end of chasing a thinned out opportunity. Downloadable desktop-based scanning software can produce quicker results but can greatly drain your computer’s resources and slow down other functions. Users should limit the scans to groups of stocks like watch lists or sectors, rather than the whole market to ensure proper functionality and offset performance slow down. With a smaller sample size, these programs can be customized to alert potential pattern triggers much quicker than a cloud-based scanner. They will require programming knowledge and fluency in the criteria selection process to customize the scans.

The best way to manage risk when swing trading is to use stop-loss orders to limit losses and to never risk more than 1-2% of your capital on any single trade. New traders tend to be purely focused on the amount of money they’re going to make. And while this isn’t strange at all, it often caused a lot of angst if those performance goals aren’t met. Now, before you start trading yourself, this all might seem silly.

Or in other words, no more than 60% above the Low of Today’s Range. This filter helps us to find stocks that are currently in a Pullback. Here’s how you can use Scanz to find the top movers every single day. Alexander Elder used an EMA and the MACD indicator in his Impulse System to determine market momentum. An extreme volume day with a wide gap might signal an exhaustion gap. You will see that it is unusually smooth and matches the wave-like movement of the market.

Before 2010 I experimented with everything from one-minute scalping strategies to trading Monday gaps. The second rule is to identify both of these levels before risking capital. The idea is to catch as much of it as possible, but waiting for confirming price action is crucial. Then in Step 3, you learned to evaluate the market’s momentum.

However, since you can’t create your own custom screen, isn’t necessarily ideal for advanced traders with custom strategies. Finally, SwingTradeBot does offer basic portfolios and watchlists. The main use of these lists is to help you filter your alerts or screens. However, they can also give you quick access to view recent technical signals around your watched stocks. The platform makes it relatively easy to import your portfolio from your brokerage as a CSV.

However, in the case with the stock market, we know for sure that mean reversion strategies are easier to build than other strategy forms, as we’ve already shared with you. Trend following strategies work in the opposite way to mean reversion strategies. While mean reversion suggests that a an overexented market is likely to soon revert, trend following strategies instead suggest that the market will continue in the direction of the momentum. When the market has gone to much to the upside, we usually say that it’s overbought.

Tim Alerts (Best for Penny Stock Day Traders)

The main disadvantages of swing trading are that it requires a lot of patience, it can be risky if not done correctly, and it is time consuming to analyze the markets. Swing trading is best suited to traders who have the time and patience to wait for the right entry and exit points. Traders who are patient and disciplined are more likely to be successful at swing trading.

For example, a 10-day SMA adds up the daily closing prices for the last 10 days and divides by 10 to calculate a new average each day. Each average is connected to the next to create a smooth line which helps to cut out the ‘noise’ on a stock chart. The length used can be applied to any chart interval, from one minute to weekly. SMAs with short lengths react more quickly to price changes than those with longer timeframes.


When looking for all these types of conditions to find the best to trade at the moment, you’d better use a stock screener. We’ve already covered this topic, but it’s worth remembering that a stock screener can help with the whole stock selection process, and not only with finding the specific buy or sell signals. MultichartsMulticharts is a trading platform that’s very similar to TradeStation in several regards. You can use it to scan for trading signals, and also perform advanced portfolio backtests.

Swing Trading CFDs or Stocks?

Since the results are formulated based on closing prices, there is no immediate need or opportunity to trade the stocks. People often wonder how to find stocks to trade or how to scan for complex criteria. We do weekly watch lists so we thought we might as well share some insight on how we scan specifically.

stock scanner

For example, they may detect a high short interest % in a stock or industry, which often leads to short squeezes, such as what happened with GameStop. Strategies need to be based on things that tend to work over many trades…that is why I use the criteria I do. BUT, there are INFINITE WAYS TO TRADE. By all means you should develop your own approach based on what you see and find. Unless you have a way to identify news like that which would likely require having a lot of knowledge of the company itself . Im going through trade idea scanner strategies to find something like this. I have TradeIdeas scanner which is the best I’ve ever used but I have it set up for scalping/momentum plays.

Scan #1: Sector Analysis Top List

Before we show some examples using swing trades, let’s define the two types of levels. This scan is used to monitor each stocks proximity to the key moving averages . The Relative Volume filter is great at finding stocks in play. It looks at the 10 Day Volume Average for this time of day of the stock and compares it to the current trading volume. A Relative Volume of 1 would be normal, we’re looking for stocks that are on par to trade at least three times their average volume. 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.

That’s perfect because creating a of stock traders can help you gauge what the sentiment is for many retail traders on social media. ​Also, we filtered it to show stocks that are up on the day, and have at least 150,000 in trading volume. We use this scanner at least once a week when we’re in the process of writing our weekly watch lists. I find the huge number of screener parameters as unnecessary, it is not a tool you would sort out your type of trades in a click or two, i would prefer a condensed screener or scanner.

Your job is to “interview” them for the “job”, analyze them for potential trades. The stricter the qualification process, the easier it is to hire and put on the trade. Maybe you’re just a contrarian trader that trades based off sentiment.

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78% of retail investor accounts lose money when spread betting and/or trading CFDs with this provider. You should consider whether you understand how spread bets and CFDs work and whether you can afford to take the high risk of losing your money. Any and all information discussed is for educational and informational purposes only and should not be considered tax, legal or investment advice. A referral to a stock or commodity is not an indication to buy or sell that stock or commodity.

It is important to distinguish whether the scanner is using your computer’s resources or the data provider’s servers to perform scans. The number crunching can be a major resource hog that can slow down your system performance. Depending on how specific your criteria is, you can determine if you will need to some programming training to ensure more accurate results. SwingTradeBot is a helpful stock screener and market overview platform that cues traders in on potential trades. Nothing about the software is particularly groundbreaking or unique.

Many swing traders choose to log their entry, exit and time in each trade. You will sometimes find that some stocks aren’t compatible with your strategy, and as such you should consider removing them from your list of stocks to swing trade. It’s important to pay attention to the volume of the stocks you’re choosing for your swing. New traders, especially those with small accounts, tend to be attracted to stocks that trade for very little money. These stocks tend to have very little volume, and trading them you will experience a lot of slippage. Momentum swing trading strategies work, but it’s much harder to find edges that rely on momentum logics than mean reversion.

These types of plays involve the swing trader buying after a breakout and selling again shortly thereafter at the next resistance level. Stochastic Screener – Stochastic oscillator is another great technical indicator to find stocks that are oversold or overbought. This is one of the most popular indicators used by swing traders.

It focusses on a curated list of promising swing stocks that are expected to move higher . All stocks have been evaluated and handpicked by our TI Traders to give you an edge and enable you to benefit from decades of trading experience. 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. Start swing trading to potentially profit from your trading edge.