How to Find Stocks to Swing Trade

You can add in filters for price, market cap, or volume to see results only for stocks that are in your price range and that see a relatively large degree of trading action. Relative strength indicator is yet another tool that swing traders can use to identify possible entry points.

How to Find Stocks to Swing Trade

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. If the MACD line crosses above the signal line a bullish trend is indicated and you would consider entering a buy trade. 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. Swing traders look for trends in stocks that can take several days to reveal themselves.

Why risk management is critical in swing trading

The best swing trading stocks will have high price volatility and liquidity, like large-cap stocks, which are among the most actively traded stocks on leading exchanges. This swing trading strategy requires identifying a stock displaying a strong trend and trading within a channel. A channel occurs when an asset’s price moves between two parallel trendlines, with the upper trendline connecting the swing highs and the lower trendline connecting the swing lows in price.

Which indicator is best for breakout strategy?

A volume indicator will signal if a breakout is strong or not, and how established levels of support and resistance are. Volume should pick up when the price reaches levels of support or resistance, if not, any breakout beyond these levels may likely be a fake-out.

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Features to Look for in Swing Trade Stocks

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