In both cases, the intent is similar – specific filters shall result in a short list of stocks that meet the preferred criteria. Once again, the 50-day moving average serves as a rough guide for the lower trend line, though not as neatly as Facebook’s does. The upper trendline is also a bit ragged, so this stock will be a good one to learn the feel for when the stock is going to rise and fall. Facebook, Apple, and Microsoft are suitable stocks for swing trading in certain market conditions. Swing traders typically try to buy a stock, hold it for two or three days, then sell it at a profit. That’s why I cut losses quickly, stick to my rules, and never trust any of shady penny stock companies. The main factor differentiating the two techniques is the holding position time.

• Let’s take a look at how you can use these scanners to find different swing trading setups.
• If you can identify a trending stock you can jump on for the ride!
• There is also a premarket scanner included as well as a post-market scanner.
• If a pattern is at a breakout point but doji candlesticks are forming, wait for confirmation of direction.

Have a notebook handy next to your computer to jot down ideas about the upcoming week. When you are trading you will forget about your weekend research! See how we are NOT predicting what is going to happen in the future.

Which Screener Is Best For Stocks?

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. A wide spread between the bid, the ask and commissions can eat too large a portion of your profits. Swing traders can struggle with this too, but the effect is amplified for the day trader. Day traders can find themselves doing all the work, and the market makers and brokers reap the benefits.

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. If a stock remains in a bullish up trend it is likely to have multiple breakout moves. If you miss a stock that makes a large breakout move as you predicted, don’t make the mistake of chasing.

How to build your own stock screener?

The length used can be applied to any chart interval, from one minute to weekly. SMAs with how to scan stocks for swing trading short lengths react more quickly to price changes than those with longer timeframes.