0:02 In the past couple of weeks, I placed
0:05 zero day trades, but my swing trading is
0:09 passively making me $30,000.
0:11 Swing trading is a type of trading style
0:14 that's perfect for busy individuals and
0:17 part-time traders who do not have the
0:20 time nor want to deal with the stress
0:23 and volatility of day trading. I get it.
0:26 Not everyone can or should stare at the
0:30 charts from 9:30 to 4 pm. If you ever
0:32 struggle with day trading or you're
0:35 juggling a demanding 9 to7 job, this
0:37 video will show you the step-by-step
0:40 process of how to get into swing trading
0:44 properly, safely, and consistently. In
0:46 this video, you're going to learn how to
0:48 start swing trading, what swing trading
0:51 really is, and how much money you need
0:53 to start, and who it's best for. You
0:56 also learn about the technical setup for
0:57 swing trading. You'll learn about time
1:00 frames, key levels, and indicators.
1:02 Next, we'll talk about the three chart
1:05 patterns for swing trading. You'll learn
1:07 about chart analysis, how to find them,
1:10 best entries and exits for these chart
1:12 patterns. Then we'll talk about the best
1:15 broker and trading platforms for swing
1:17 trading, including mobile apps. And
1:20 finally, you'll learn about my simple
1:22 high probability swing trades that's led
1:25 me to my current two swing trades.
1:29 $20,000 in GM and $11,000 in profits in
1:32 DG. I'll break down how to scan for
1:34 these swing trading setup, how to find
1:36 your entries, manage your risk, as well
1:39 as taking profits. If you enjoy
1:41 structured educational videos like
1:43 these, then make sure to hit the like
1:45 button down below, it really helps the
1:48 channel grow and it tells me that you
1:50 want to see more swing trading video
1:52 lessons like this. All right, let's get
1:54 started with how to get started with
1:56 swing trading. Most people choose swing
1:59 trading for one reason and one reason
2:02 only, and that is freedom. I personally
2:05 been day trading for over a decade now
2:07 and I started shifting more of my
2:09 capital towards swing trading recently
2:12 because the intraday pace and the
2:14 volatility for day trading is just
2:17 honestly brutal. When I was actively day
2:20 trading fulltime, I would wake up at
2:22 4:30 a.m. to 5:00 a.m. here in
2:25 Vancouver, due to the time zone, in
2:27 order to scan for stocks to trade, build
2:30 my watch list, and be ready for the
2:33 market open at 6:30 a.m. Sure, I could
2:35 do that every single day when I was in
2:38 my 20s, but now it's 30 years later. I
2:41 need a break, man. Day trading is fast,
2:44 emotional, and unforgiving. Yes, you can
2:46 certainly make thousands of dollars in
2:49 seconds, but you can also lose it all
2:51 just as fast. And yes, that's speaking
2:54 from painful experience here. On the
2:56 other hand, swing trading slows
2:58 everything down. Instead of holding
3:01 positions for minutes, or hours, you're
3:03 holding on for days, weeks, or even
3:06 months. That means this is perfect for
3:08 part-time traders as you don't need to
3:11 stare at the charts all day. It's a lot
3:13 less stressful overall. You also don't
3:14 need to wake up early every single
3:17 morning. In fact, I find that showing up
3:20 to the markets midday is where I find
3:23 the best entries for my swing trades.
3:25 So, if you like the idea of analyzing
3:27 charts midday, placing your levels, and
3:30 letting the trade work out over the
3:32 course of days or weeks without
3:35 babysitting it every single second, then
3:37 swing trading might just be for you.
3:39 Now, with that mindset, let's break down
3:42 the essential technical analysis you'll
3:44 need for swing trading. We'll be talking
3:47 about charting time frames, indicators,
3:49 supply and demand key levels, and later
3:53 on, chart patterns. In trading, the time
3:55 frame of a chart refers to a length of
3:58 time that a trend is presented in a
4:01 market. It's used by day traders and
4:04 swing traders to analyze price movements
4:06 and make decisions based on their
4:08 trading styles and strategies. For
4:11 example, one minute or five minute. Um
4:12 on the screen over here, this is an
4:15 example of a day trade I did. On the
4:17 left hand side, this is a daily chart,
4:19 but you can see on the right hand side,
4:21 this is the five minute chart. This is
4:23 where I execute my trades. And this is
4:26 the entry and I got out on a five-minute
4:28 chart within the same day. On the other
4:30 hand, if you want to become a swing
4:33 trader, then the most commonly used time
4:35 frame will be the daily and the weekly
4:37 chart. So on the screen here, you can
4:39 see an example of the swing trade that
4:42 I'm still currently in, GM. So you can
4:44 see I often use the daily chart for my
4:47 swing trade. I got in after this
4:50 breakout pullback to around the $69
4:53 area. I got in here and since then, I've
4:55 been riding along on the daily time
4:57 frame. In swing trading, you're looking
5:01 to make a dollar, $2, or in my case, I'm
5:05 making almost $20 per trade. But whereas
5:06 when you go back to the day trade we saw
5:09 earlier, I'm making 50 cents, 60 cents,
5:13 or even a dollar or $2 per trade. So,
5:14 that's a big difference there. When
5:16 you're swing trading, you're looking at
5:18 the bigger picture on the daily chart
5:22 like this example, or the weekly chart
5:24 such as this one. We're going to talk
5:26 even more about chart analysis on the
5:28 daily chart and execution on your swing
5:30 trades on the shorterterm time frames
5:32 later on in the video when we're talking
5:34 about strategies.
5:36 All right, now that we understand the
5:38 best time frames and charts for swing
5:40 trading, let's move on to technical
5:42 indicators. Remember, indicators are
5:45 subjective. Every trader uses different
5:47 pairs of indicators for each and
5:49 different styles, whether it's day
5:51 trading or swing trading. So, let's
5:53 break it down now. So on the screen over
5:55 here, you're looking at the charts and
5:58 the indicators I use for swing trading.
6:00 You can see I have three main indicators
6:02 right here. The orange line, which is
6:06 the 8 EMA, the 200 SMA, which is this uh
6:09 purple line here, and at the bottom I
6:11 have volume. So these are the three main
6:14 indicators I use. Let's start with the 8
6:16 EMA first. This orange line, this ATM
6:19 EMA is a momentum indicator. I used to
6:21 define whether the stock is currently
6:24 uptrending towards a breakout or
6:27 consolidating for either a move up or
6:28 down. We're going to talk about the
6:30 specifics of the candlestick chart
6:33 patterns later on in the video. But for
6:34 now, you just need to know that. For
6:37 example, in this GM trade, I want to
6:39 know that the stock is riding along this
6:41 8A. You can see that it's steadily
6:45 reclaiming over that 8 EMA and slowly
6:47 grinding grinding back up. And once it
6:49 start to break out, that's when you see
6:52 a gap um from the candlestick charts to
6:54 the ATMA. So that's a sign of a
6:56 breakout. We're going to talk more about
6:59 these nittygritty details later of the
7:01 executions, but for now, you just need
7:03 to know that ATMA is a momentum
7:06 indicator. It's a good sign if a stock
7:08 is riding along that indicator for a
7:10 potential breakout. All right. Next,
7:14 let's talk about the 200 SMA, which is
7:17 this purple um you know, a lot flatter
7:20 line down here. 200 SMA stands for 200
7:23 simple day moving average. This is a key
7:25 indicator that a lot of traders and
7:28 analysts use to determine the overall
7:30 long long-term market trend of the
7:32 stock. So, like the name suggests, 200
7:35 SMA is a very long-term moving average.
7:37 This line here, you see, this purple
7:40 line, essentially calculates the average
7:44 price of a stock over the last 200 days.
7:46 And this indicator is especially
7:48 important if you're a swing trader
7:51 because in general, stocks below the 200
7:54 SMA is considered weak and not ideal for
7:56 swing trading or investing. and vice
7:59 versa. Stocks that's above the 200 SMA
8:02 is considered to be more bullish and
8:04 it's more of a better candidate for a
8:06 lot of your swing trades. All right, now
8:08 let's talk about the next indicator that
8:10 I use a lot for swing trading and it's
8:13 pretty universally used for most day
8:15 traders and swing traders actually and
8:18 that indicator is volume. Volume
8:20 indicator are these bars down here. You
8:23 can see the red and green bars and you
8:25 can see on the there are days with a lot
8:28 higher volume like so on this example DG
8:30 and there are days where it's just
8:33 average volume like these consolidation
8:36 uh months actually volume indicator
8:38 shows you a visual representation of how
8:41 many shares of a stock is traded in a
8:43 single time frame. So in the in this
8:46 example these are daily charts. So this
8:48 is the daily volume candle. This is a
8:51 very important indicator I use to help
8:53 with entering my swing positions as well
8:57 as exiting for a loss or take profit.
8:58 We're going to talk more about these
9:00 indicators later on where I talk about
9:03 my favorite swing trading strategy. All
9:05 right. Next, I think you guys are going
9:07 to love this upcoming section. I'll be
9:10 sharing my three favorite swing trading
9:12 charts patterns along with their
9:14 potential entry, stopout, and take
9:17 profit. I want to preface by saying that
9:19 these three chart patterns I'm about to
9:21 share with you, they work best for
9:24 larger cap stocks at least above 1
9:27 billion market cap because so I wouldn't
9:29 use that for any of the super small cap
9:32 stocks or micro caps. The first chart
9:35 pattern is the daily gap up. Yes,
9:37 technically as you can see on screen,
9:40 this is a form of a breakout as well,
9:41 but you want to make sure that the stock
9:44 is breaking through multimonth
9:46 resistance. So on the charts over here,
9:48 you're looking at Lululemon. You can see
9:50 that the stock has been in a long-term
9:53 downtrend below the 200 SMA. And you can
9:55 see after this earnings gap down, the
9:58 stock has since then sold off from 280
10:01 all the way down to a low of 160. And
10:03 now on this particular day, you have a
10:06 gap up. A gap up is when you see that
10:08 there's a visual representation like a
10:11 visual gap that you can see here.
10:13 Previous day days close the stock was
10:18 what? At 186 187 and next day it opened
10:22 at 204. So that means overnight there's
10:24 about a 20 point gap. That's where you
10:28 see a visual gap on the daily. So this
10:30 is the first important chart pattern you
10:31 want to know. Let me show you a few
10:34 other examples. Um another one recently
10:36 that we found is Tillray. You can see
10:39 another similar thing here. This one is
10:41 actually above the 200 SMA. You can see
10:44 um previous days closed down here and
10:47 next morning opened at $11. So there's a
10:50 $3 overnight gap. So now you know what
10:52 the first part of this chart pattern
10:54 looks like which is the overnight gap
10:56 up. But we're not done yet. There's
10:58 another important aspect in which is
11:00 that you want to make sure that the gap
11:03 up is over at least a multi-month
11:05 resistance. What does that look like?
11:08 You can see Lululemon right previously
11:10 before this day there's a multi-month
11:12 resistance around here. You can see that
11:15 the stock touched that area. This is a
11:17 support and it became a resistance here
11:20 in October and once again in December.
11:23 And now you can see it's gapping over
11:26 this line here which is 188. So this is
11:27 how you know it's a multimonth
11:30 resistance and the gap has to be above
11:33 that resistance. So with that logic, if
11:35 you go back to the Tor example, this gap
11:38 up does not meet that criteria because
11:41 you're gapping up to a resistance from
11:43 November just last month. And another
11:46 caveat that's important to understand.
11:48 Ideally, you want to know that the
11:50 overnight gap up is due to some
11:53 meaningful news event. For example,
11:56 earning speeds or guidance speed. That
11:58 will be the case for both GM and
12:00 Lululemon that you saw earlier. When you
12:03 have positive news catalysts like this,
12:05 that's when a stock has a lot more
12:07 potential to break out and continue to
12:09 the upside. So, let's talk about
12:11 execution. Now, when you have this
12:14 overnight daily gap up chart that's over
12:16 a multi-month resistance that we talked
12:19 about and ideally with a positive
12:22 catalyst, that's when then I'll take a
12:24 look at a potential swing trade
12:26 position. So, my ideal entry will be as
12:29 close to these 8 EMA, the orange lines
12:31 as possible. And I'll try to alone um
12:34 write it alone that EMA breakout. If you
12:36 need more help with finding these
12:38 potential chart patterns for swing
12:40 trades, then you should definitely sign
12:42 up for my free weekend watches link down
12:45 below. Every single Sunday, I send out
12:47 three to four ideas for both day trading
12:50 and swing trading that includes a lot of
12:52 chart analysis and my trading plan for
12:54 the week. So, you can check it out with
12:56 the link down below. All right, let's
12:59 move on to chart pattern number two,
13:01 which is a long-term downtrend break.
13:03 This sounds familiar to the previous
13:06 chart pattern, which is a daily gap up,
13:08 but it's not. Hear me out. Let's take a
13:10 look at this first example here, which
13:13 is CRM. You can see really similar as
13:15 the previous chart pattern we talked
13:17 about. The stock is in a long-term
13:21 downtrend and this time it can be below
13:24 that 200 SMA that you can see here. But
13:27 you can see that if you zoom out, you
13:28 can look at a lot of the resistance on
13:31 the daily. These peaks and dips. You can
13:34 see the stock rallied to touch the 200
13:36 SMA, sold off. You can see these PE
13:39 peaks or like these resistance area that
13:42 stands out. If you line up these um tips
13:44 or like the resistance areas here, you
13:46 can line up with a line. You can see
13:48 this is a long-term downtrend that's
13:50 been forming since February of this
13:53 year. So, you have this downtrend line
13:55 here. And the chart pattern we're
13:58 looking for is when the stock breaks out
14:00 above that long-term downtrend. So, you
14:02 can see on the daily charts here, CRM,
14:04 they had earnings uh report in the
14:07 beginning of December. You can see since
14:09 then the stock broke out of this orange
14:12 line here. You can see now it's settling
14:15 above that purple line which is a 200
14:18 day SMA. So there's multiple confluences
14:21 happening here. The first one is the
14:22 stock is breaking out above that
14:25 long-term downtrend, the orange um
14:27 downtrend line over here. Second, it's
14:30 that it's reclaiming the 200 SMA. You
14:33 can see it started to break out and the
14:35 last next couple of days it's been like
14:38 steadily holding above that 200 SMA and
14:41 finally remember the indicator we talked
14:45 about earlier yes the ATMA the 200 SMA
14:48 but also the volume indicator you can
14:50 see that this breakout over that
14:52 downtrend the volume is exceptionally
14:54 high and I'm not saying this is the
14:56 first time it's done that obviously you
14:58 can see in the past it's traded high
15:01 volume here and here. But remember,
15:03 we're talking about chart pattern and
15:06 confluences. A lot of things and a lot
15:08 of criteria has to check off for you to
15:11 take a swing trade. So, this indicator,
15:13 the volume breakout, along with
15:15 everything else we talked about that
15:18 checks a lot of boxes. So, a very
15:20 important caveat for this particular
15:22 charts pattern, which is a long-term
15:25 downtrend break, is that once again, you
15:27 want to make sure you're only doing this
15:29 for stocks that above the 1 billion
15:32 market cap. This is not ideal for
15:34 smaller cap stocks. All right, so let's
15:36 talk about the potential execution for
15:38 this particular chart pattern now, shall
15:41 we? So, once again, ideally, the stock
15:43 is not reclaiming over the 200 SMA that
15:45 you can see here.
15:48 And in this case, in the case of CRM, I
15:50 haven't taken a position yet, by the
15:52 way, at the time of filming, but I might
15:54 in the next couple of days. We'll see if
15:57 that works out. Um, but ideally, you
16:01 want to enter above the 200 SMA. So, I
16:03 would prefer not to get in below 200
16:06 SMA, but sometimes I do if the chart
16:09 looks really good. But in this setup, my
16:11 ideal entry will be right above the 200
16:15 SMA area over here. and I will want to
16:17 stop out underneath that. You know,
16:18 remember this is a swing trade, so you
16:20 got to give it some room to breathe. You
16:22 don't want to put your stop right below
16:24 the 200 SMA. You want to make sure it's
16:26 below some recent support. So, I'll
16:29 probably put my stop at around 255.
16:31 And let's talk about the potential
16:33 upside. A lot of upside for this chart
16:35 will be the previous daily resistance.
16:38 So, you can see after this 200 SMA, you
16:40 have a small resistance here, which is
16:43 the high from the two days ago. and they
16:45 have resistance around 277 and then over
16:48 a little bit over that at 290s. So these
16:51 are the potential price targets. All
16:52 right, let's talk about charts pattern
16:55 number three, the oversold charts
16:58 pattern. This pattern is a little bit
17:00 harder to find. I'm not going to lie.
17:02 Essentially, I'm looking for stocks that
17:05 have experienced shortterm selling
17:08 pressure and big drops below that 200
17:11 SMA for the last few weeks to a month
17:14 and they're due for eventual bounce. So,
17:16 let's take a look at example here, Meta.
17:18 You can see that after the recent
17:20 earnings drop, huge volume here, by the
17:22 way, this gap here, you can see the
17:26 stock was at 760 and overnight it
17:29 dropped down to like what $650. So, it's
17:33 like a $100 drop overnight. Um, and most
17:35 importantly, you're dropping below that
17:37 200 SMA, the purple line we talked
17:39 about, and you have a lot of volume and
17:41 selling pressure. And you can see since
17:44 then, the stock sold off from at the end
17:48 of October to uh to end of November for
17:52 like a month all the way to $600. So,
17:54 that's a big drop. And the stock seems
17:56 pretty oversold. You can see that it
17:58 never really had any bounces once it
18:01 dropped below the 200 SMA. The key to
18:04 playing the swing trade charts pattern
18:06 is that the catalyst for this that
18:09 caused this huge drop overnight. The
18:11 catalyst must be something that the
18:14 company can eventually recover from and
18:17 it's shortterm not permanent. So another
18:19 example here that we can look at
18:21 recently is Netflix. You can see same
18:25 thing um after the the recent earnings
18:28 and then the stock split and recently um
18:30 they are placing a bid to buy Warner
18:32 Brothers one of the divisions and the
18:34 stock just continue selling off below
18:40 the 200 SMA from like 116 down to $95.
18:42 So this is another example. The chart is
18:44 not ready yet but one that I'm looking
18:47 at. The idea is that you're not trying
18:49 to pick the bottom on these kind of
18:51 oversold charts because remember they
18:53 can keep on selling off. The idea is
18:55 that you will only want to get in once a
18:58 stock has formed a meaningful bottom. So
19:01 you can see that Meta it's once it sold
19:04 off it's below that ATMA for weeks at a
19:06 time. So it's not like you get in on the
19:08 first day of the drop. It's that you get
19:12 in only after it broke a downtrend on
19:15 the daily like this example and you are
19:17 closing above that 8 EMA. So that's why
19:21 again once again 8 EMA comes into play.
19:23 It's a way for me to find entries on a
19:26 lot of these swing trading setup. So
19:29 know the close of over 80 EMA would be
19:32 my entry and the low of the that day's
19:35 candle will be my exit. So in this case,
19:39 my entry will be here over that 614 and
19:42 then if it closes below the low of that
19:45 day's candle at 597, then I have to stop
19:47 out for a loss. Remember, it's a swing
19:49 trade overall. You're giving it a lot
19:52 more room to breathe. Sometimes $20 or
19:55 even $30 per share, but as long as it
19:57 can give you that potential upside. So
20:01 for example uh in this meta example 615
20:03 let's say you get in here you have a lot
20:06 of upside all the way to 640s and then
20:10 at 200 SMA at 670. So it's up for you to
20:13 gauge whether that riskreward is worth
20:15 it or not. So we just talked about the
20:17 three chart patterns that I love for
20:19 swing trading. Next I'm going to teach
20:22 you how to find these chart patterns.
20:24 But before we move on, if you're
20:26 enjoying this comprehensive swing
20:29 trading video guide so far, remember to
20:31 hit the like button down below so more
20:33 people who are interested in swing
20:36 trading will see this video and I really
20:38 appreciate it. Okay, so we just learned
20:41 these three chart patterns for swing
20:43 trading. I'm sure you're now asking,
20:45 "Okay, okay, Shay, we get it. But now,
20:48 how do we find these chart patterns?"
20:50 Rest assured, I'll provide you with a
20:53 few methods on how to find these
20:55 potential swing trade chart patterns.
20:58 Some are paid and some are free. Let's
21:00 start with the option I personally use,
21:02 which is the one I prefer the most,
21:06 which is a paid premium scanner. You can
21:07 see it here on the screen. This is a
21:09 scanner I use for both day trading and
21:12 swing trading. It's called Trade Ideas.
21:14 I use this gap scanner to predominantly
21:17 find my favorite setup, which is pattern
21:20 number one, the daily gap up. And
21:22 spoilers, this is a swing trading
21:24 strategy that we'll be focusing on later
21:27 on in the video. I like you using the
21:29 scanner that you see here because it's
21:32 very customizable, such as the colors,
21:34 the strategies, and different market
21:36 caps. And I have these preset scanners
21:38 and the strategy builders already set
21:41 up. So every single morning I just turn
21:43 this on and I'm automatically scanning
21:46 for the gappers I'm looking for for both
21:48 the day trades and swing trades. So for
21:51 example here this middle strategy window
21:53 you can see the configuration here. This
21:57 is what my scan setting is like for the
21:59 chart pattern number one the daily gap
22:02 up. I'm looking for change from close
22:05 minimum of 3% market cap of at least 1
22:08 billion price above $5 per share and
22:10 volume needs to have traded at least
22:14 20,000 by pre-market.
22:16 So I use this for pattern number one.
22:18 And this is the next window over here,
22:21 the gap down window. I use this for
22:23 pattern number three which requires a
22:25 big overnight gap down like we talked
22:28 about. I'll give you a link to download
22:30 this exact settings down below if you're
22:32 interested in checking out the scanner,
22:34 but of course I'll give you some free
22:37 options now. So the free option for
22:38 finding a lot of these swing trading
22:41 chart patterns is Finn Viz. So if you go
22:43 to finnvis.com, if you go to screener
22:46 over here, now we're going to do a
22:48 couple of really easy presets. Market
22:50 cap, I'm looking for stocks over two
22:52 billion. They don't have 1 billion
22:55 available, that's why. um price over a
22:59 dollar per share. Average volume, I like
23:02 to look at at least over 500K.
23:04 Relative volume, I like to look at over
23:08 two. Current volume, I like to look at
23:10 at least over, you know, 1 mil. And once
23:12 you have that, you can see that I like
23:15 to use TA in which you also get a
23:17 preview of the charts over here. So,
23:19 this is a really quick and simple way
23:21 for you to kind of just scan through
23:23 these charts on the weekend. So, I just
23:25 scroll through them and see if there's
23:28 any potential charts um that fit my
23:30 chart pattern um for So, I took a look
23:32 at these already earlier. You can see
23:35 that this stock in particular, there's a
23:37 long-term resistance here. So, it needs
23:40 to break out above the downtrend to fit
23:43 criteria number uh to fit the chart
23:46 pattern number two. You can see another
23:49 one here, FR OG, frog. You can see just
23:50 really quickly here, you can see that
23:54 there's an overnight gap up. And now um
23:55 if you look at the indicator on the
23:57 chart, it's probably trending along the
24:00 ATMA. So this is one for potentially for
24:03 pattern number one. So anyways, the
24:05 Finnish screener, it's free, very easy
24:09 to use. The only caveat is that this is
24:11 at least 15 minute delayed, which you're
24:13 not getting live market data. I mean,
24:16 it's free after all. And that's not a
24:18 big deal at all for swing trading
24:20 actually because remember you're not
24:23 looking at u one minute or two minute
24:25 charts. You're looking at the dating. So
24:27 that's okay. But if you are day trading
24:30 the delayed uh charts and the data
24:32 simply wouldn't work for you. But yeah
24:35 this um Finnbit screener is really easy
24:37 to use for swing trading. And if you
24:40 want you can take a screenshot of these
24:43 criteria over here. Um, the only ones I
24:45 would play with is average volume,
24:49 either over 500K or 750K and relative
24:51 volume. Um, I like to look at over two,
24:53 but sometimes when there's too much
24:55 charts, then I'll look at over three.
24:58 So, this is the setting for the swing
24:59 trading screener. And again, this is
25:02 free with 15-minute delay. And it's
25:05 ideal for um at least the chart pattern
25:10 number one and um number three. There's
25:12 also a few other options for scanner for
25:15 swing trading as well. U one I like a
25:17 lot is the Weebo scanner. They have a
25:20 free desktop platform with I believe
25:22 it's a free market data. So check that
25:24 out. They have a pretty good screener as
25:26 well. The other one I don't like as much
25:29 is trading view. This screener is a
25:31 little bit too hard to use. So I would
25:34 definitely prefer Finiz and Wee Bowl for
25:36 the free option. I'll leave links to all
25:38 the platforms we just talked about,
25:41 which is free and paid, including the my
25:43 layout settings that you can download
25:45 down below.
25:48 The next tool you definitely need to set
25:50 up as a swing trader are your brokers
25:53 and trading platforms. So, let's talk
25:55 about the ones that I actually use
25:58 myself and I personally recommend. I
26:00 think in general it's a really good
26:02 practice to keep your swing trading
26:04 account separate from your day trading
26:06 account. This way you don't get itchy
26:09 fingers and take profits too early on
26:11 your swing trades when you are day
26:13 trading. And also just for general tax
26:15 purposes, you want to keep your day
26:17 trading and swing trading accounts
26:19 separate as well because depending on
26:22 where you live, these two trading styles
26:25 could potentially be taxed differently.
26:28 I'll make separate videos talking about
26:31 trading taxes in USA and Canada really
26:34 soon. So stay tuned. So the brokers I
26:37 use for swing trading are Cinderoint
26:39 securities and interactive brokers. So
26:42 that starts with interactive brokers. I
26:44 actually really like the mobile app on
26:47 IBKR. Oftentimes I just enter my swing
26:49 trades or take profits on the mobile
26:52 app. They also allow you to use OCO
26:55 orders or bracket orders on the mobile
26:57 app which is very convenient and that
27:00 allows you to manage your day trades or
27:03 swing trades really easily. They also
27:05 came out with an interactive broker
27:07 desktop platform which is a lot easier
27:11 to use than their original TWWS. I also
27:13 have done a video tutorial on it if you
27:15 want to check that out later. So the
27:17 second broker I use for swing trading is
27:20 Centerpoint Securities. This broker on
27:22 the other hand, I use it a lot more for
27:25 day trading and active short-term swing
27:27 trading. The broker connects with Dash
27:29 Trader Pro, which is another trading
27:32 platform, and it's the best execution
27:34 platform in my opinion. Centerpoint is
27:36 running a promotion right now for three
27:39 months free of commissions and up to 50%
27:42 off commissions for life. If you've been
27:44 on the fence, now is the best time to
27:46 check them out along with other bonuses
27:48 that they're giving away. I use both of
27:50 these brokers to execute my swing
27:52 trading strategy which we'll cover soon
27:55 in the next section of the video.
27:56 Another beginner trading platform which
27:59 you can consider is Trading View. It's
28:02 mostly a web charting platform but you
28:04 have the option of connecting to
28:06 different brokerages to Trading View.
28:08 Essentially, Trading View is an
28:11 execution platform. It's not a broker by
28:13 itself. I personally only use Trading
28:16 View for charting and a lot of demos
28:18 like you see on all my YouTube videos.
28:20 I'll put links to all of these trading
28:22 platforms and discounts down below for
28:25 you to check it out. All right, finally
28:28 we can talk about my favorite and very
28:31 simple technical breakout strategy for
28:34 slim trading. This is a strategy I use
28:35 for my current stream trades that you
28:39 saw earlier on GM and DG that's making
28:41 me around $30,000.
28:43 There's a three-step process for this
28:45 screen trading strategy. And guess what?
28:47 This will be a very practical
28:50 step-by-step approach for you to utilize
28:52 everything we learned earlier in the
28:55 video from indicators to chart patterns
28:57 to finding a chart patterns and of
29:00 course where to enter and exit. So I
29:03 hope you paid attention earlier. First,
29:05 let's talk about how to find this
29:07 particular setup. This is a very
29:09 important aspect before we go to the
29:11 entries and exit portion of the
29:13 strategy. I like to use a gap scanner
29:15 like the one you see on screen to find
29:18 stocks that fit this particular setup
29:20 and this chart pattern during the middle
29:23 of the day after 12:00 p.m. Eastern
29:26 time. And this is perhaps the biggest
29:28 difference in terms of my stock scanning
29:31 criteria and process between day trading
29:34 and swing trading. When I'm day trading,
29:36 I want to scan for these stocks early
29:38 during pre-market hours. For swing
29:40 trading, though, I'll have this scanner
29:42 set up between 12:00 p.m. or sometimes
29:45 as early as 11:00 a.m. until the market
29:48 close at around 400 p.m. The idea behind
29:50 these scanner settings are very simple.
29:52 I'm looking for stocks that have already
29:55 gapped up and holding its gains in the
29:57 middle of the day and I want to get in
30:00 for even more followthrough riding alone
30:03 that ATMA momentum during the breakout
30:05 on the daily chart. So to do so, let me
30:07 show you the scanning criteria that I
30:10 use for scanning um swing trades in the
30:13 middle of the day. Go to configuration,
30:15 go to the filters. So you can see that
30:18 I'm scanning for stocks that's above $5
30:20 per share because I don't look at any
30:23 small caps or penny stocks. Um for
30:26 market cap I have above 1 billion market
30:29 cap change from close I want to look at
30:32 stocks that have at least 3% change on
30:34 the day and the volume today needs to
30:37 have traded at least 20,000 and that's
30:39 considered low. And once you have that
30:41 criteria you can see it will show you a
30:43 bunch of these tickers. All these stocks
30:46 are gapping up. Um, you can see and
30:48 holding strong on the day. You can see
30:51 the first one, this example here, 47% on
30:55 the day, 16, 15, 12% all the way down to
30:58 a minimum of three. And usually most of
31:00 my best swing trade candidates, they'll
31:03 be near the top of the list. But once
31:05 again, the criteria is extremely simple
31:07 and you can use the exact same filters
31:09 for any free or paid scanner that you
31:12 might have. But once you have this list,
31:14 you're ready to move on to step number
31:16 two. So it's time to use the knowledge
31:18 you learned earlier about charts
31:22 patterns and the 8 EMA and 200 SMA
31:24 indicators. So once you have that list,
31:26 I'll put the list on the side. We're
31:27 going to go through each of these
31:30 tickers one by one and analyze the chart
31:33 patterns that we talked about earlier.
31:35 So let's take a look at the first one
31:37 here. rate you can see that yes it's a
31:40 daily overnight gap up but like we
31:42 talked about earlier it's not breaking
31:45 through multimonth resistance the
31:47 resistance that's breaking through it's
31:49 from November of last which is last
31:54 month so nope PSNY next one on the list
31:56 you can see nope even though it had a
31:59 small um change overnight nope not ideal
32:04 it's not even a real gapper you okay
32:06 this one is uh this one will qualify.
32:08 You can see that yes, it has an
32:10 overnight gap up. Previous day's close
32:13 was $36 and today you're gapping up to
32:17 $38 and now you're holding above that
32:20 orange line here. Resistance around $39.
32:22 You can see that was a resistance at
32:25 December of last year, um September,
32:27 then November. So, you're holding
32:30 through above that resistance. So, this
32:34 one will qualify as a daily breakout and
32:36 gap up candidate. And let's check the
32:38 indicators now, shall we? Yes, it's
32:40 above the ATMA. Even though you can see
32:43 the orange line hasn't caught up yet.
32:45 So, next week, that's when I'll look at
32:47 whether it's riding along the ATMA for
32:50 that potential entry, but it's above the
32:53 200 SMA. That's good. And this gap up,
32:55 it's also a volume breakout down here.
32:57 So you can see what's putting everything
33:01 you learn one by one together. Now um
33:08 Nope. You can see that you are just
33:10 about testing that resistance multimonth
33:12 resistance over here. If you draw a line
33:15 here the stock hasn't broken out above
33:17 it. So that also doesn't fit. Then you
33:19 have Lululemon. We'll do this one as the
33:22 last one. Um, this is an example earlier
33:24 of a overnight gap up and above that
33:27 multimonth resistance here. You can see.
33:30 So, that's good to see. But this stock
33:33 is below the 200 SMA. So, it's below the
33:35 200 SMA here. So, would I take this
33:38 swing trade? Probably not. So, some of
33:40 these tickers that you'll find on the
33:43 gap scanner may not be the perfect stock
33:46 to take for this technical swing trade
33:49 right away the day you find them. But
33:50 you should still keep them on a watch
33:53 list. They may not be ready for the day
33:55 you find them, but they can set up for a
33:57 few days or a few weeks later. Remember
34:00 what we mentioned earlier, swing trading
34:02 is about taking very few and very
34:05 selective trades. You want quality, not
34:08 quantity. Okay. Step number three,
34:10 executions. How to take these swing
34:13 trade entries and exits. So, I think I
34:16 mentioned earlier in the video that the
34:18 stock that fit this kind of strategy has
34:21 to be breaking out of a multimonth
34:24 resistance above the 200 SMA and riding
34:27 along that have and riding along that 80
34:29 EMA. So, this one you don't know that
34:32 yet. But that's why again I want to put
34:34 it on my watch list and see how it
34:36 trades the next couple of days. And
34:39 let's say that stock does trade along
34:42 the ATMA like this DG like this GM
34:45 example. The entry you're looking for
34:48 are the pullbacks towards that ATMA. The
34:50 day I found the stock, the stock has
34:52 already broken out, but I waited for it
34:55 to pull back along that ATMA and I got
34:59 in around $69 here. You can see along
35:01 that ATMA, it's riding along that broke
35:03 out, pulled back, but you can see it
35:06 really quickly reclaimed over that. So
35:09 swing trading is once you find an entry
35:11 unless the stock actually continue to
35:13 break down at least at this point my
35:16 risk is well above the $66. So you can
35:19 see even after I got in my risk was the
35:22 low of the candles over here. So even
35:25 after this pullback I never got to stop
35:27 out because this is my planned risk. So
35:31 I got in here $69 broke out pulled back
35:33 and since then it took off along that
35:36 ATMA. So that's why the ATMA indicator
35:39 is really good for entries. Um I
35:42 wouldn't use them exactly as your risk.
35:45 I would use the support areas below the
35:48 ATMA as your stopout area. And let's
35:50 talk about price target. So if you look
35:52 at this example, I think this is alltime
35:54 highs for GM. So you don't really have
35:57 any resistance to sell into. If there
35:59 was like any resistance, I'll sell into
36:02 the previous resistance of $72. Let's
36:04 say there's a resistance at $80. I'll
36:07 sell into that. Um, but if a stock is
36:08 trading at all-time highs, that means
36:10 there's no prior resistance to sell
36:13 into. Then that's when I'll sell into
36:16 any extension away from the ATMA. So,
36:19 what does that look like? So, my first
36:22 exit, I believe, was around $74 when the
36:25 stock starts to pull away from the ATMA.
36:26 So, you can see that there's like a
36:28 white space from the bottom of the
36:31 candle to the ATMA. So, that's what I
36:34 say call extension. when the candle
36:36 starts to take off further and further
36:39 away from that indicator. So, I'll sell
36:41 partials along the way, usually in
36:44 quarter sizes. So, if I have I have a
36:47 thousand shares, I'll get out 250 250
36:50 250. So, you can see this is a very
36:53 simple technical breakout swing trade
36:55 strategy. And I'll tell you this, it
36:58 happens the most during earning season.
37:00 So, it's not like every single week I
37:01 have 10 swing trades. There are going to
37:03 be months in which I take, you know, two
37:06 to five swing trades and there'll be
37:08 months where I have zero swing trades.
37:10 Remember, it's about quality, not
37:12 quantity. If you have any questions
37:14 regarding the swing trading strategy,
37:17 regarding the entries, exits, or even
37:19 the trading platforms or indicators,
37:21 feel free to ask me in the comment
37:23 section below. And don't forget to sign
37:25 up for my free weekend watch list. I
37:28 send them out every single Sunday. I've
37:29 made a lot more swing trading video
37:32 lessons that you can watch for free and
