How to Scan For the Strongest Stocks in the Strongest Sectors

how to scan stocks for swing trading

Either approach is fine, it is just a matter of personal preference. The Bullish Bears team focuses on keeping things as simple as possible in our online trading courses and chat rooms. We provide our members with courses of all different trading levels and topics. These alert signals go along with our stock watch lists. Our watch lists and alert signals are great for your trading education and learning experience. If a pattern is at a breakout point but doji candlesticks are forming, wait for confirmation of direction.

Is RSI a good indicator for swing trading?

RSI is best used in swing trading to detect oversold and overbought conditions. Generally, when the RSI moves over 70, the market is considered overbought. When the RSI moves under 30 it is generally considered oversold. Traders use to buy at oversold levels, and sell at overbought levels.

After entering a swing trade, place a protective stop reasonably close to your entry point. Swing trading is a high-wire act, requiring a safety net. Stops and money management are essential for your survival and success. Next, traders check to see whether any filings have been made by searching the SEC’s EDGAR database.

How to use our technical stock screener?

Also, keep an eye on stocks moving toward the top/bottom of the list, or stocks starting to move away from the top/bottom of the list toward the middle. This keeps the very low-volume stocks off the list, and keeps the list smaller and more manageable. Here’s a brief rundown of how I scan using Finviz Elite for stocks that are making big moves during the day. You could likely use other scanning software and input similar criteria. Daily scanning means more jumping around between stocks (which may require more chart windows and computer monitors). This is in comparison to another approach where we trade the same stock(s) all week based on their consistently big movement.

However, while plotting the S&R levels, you should increase the look back period to at least 2 years. Now, if you are in no mood to spend so much for the charting software & data feed combination, there is another alternative. There are times when technical merit alone can justify the case for a trade. For shorting, I like to short stocks that are weak and falling. The first few pages are going to have the strongest stocks with the most momentum.

Swing trading: Where to take profits before the market does a 180-degree reversal against you

If the MACD line crosses below the signal line a bearish trend 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. A technical stock screener is used by short term traders who are looking to trade stocks based on price actions.

You can pick swing trading techniques that work for you. If there’s certain criteria you’re looking for using something like the barchart stock signals screener is a good tool to have. It allows you to look for specific trading signals; hence you can set up a screener that fit’s your style.