This content explains how to improve swing trading success by identifying and executing trades based on three powerful chart patterns, especially in challenging market conditions, and provides a free method for scanning potential opportunities.
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What if I told you that just one simple
candlestick chart pattern could
transform your swing trading success?
Imagine spotting a setup like this one,
getting in early just as a pattern is
forming, riding the wave, and then
cashing out for massive gains once a
stock actually breaks out. But here's
the catch. Most traders miss these
golden opportunities because they don't
know where to find these chart patterns
to trade, when to enter, or when to
exit. And that's exactly what we're solving
solving
today. The market has been tough lately
with the S&P 500 entering correction
territory. It has definitely been
challenging for day traders and swing
traders. While breakouts like these are
no longer working, don't worry. If
you're selective and know where to look,
there's still opportunities in the
market. In this video, I'm sharing the
three most powerful chart patterns for
swing trading. Exactly how to find them
in real time and scan for these stocks,
when to enter, and how to maximize your
profits while minimizing risk. If you're
serious about improving your swing
trading game, then stick around till the
very end. I'll also share my top scanner
settings and criteria to help you find
these setups and it wouldn't cost you a
scent. If you're ready to level up your
swing trading game, then smash the like
button and let's dive in. Okay, let's
start with a swing trading chart
patterns now, shall we? This is a highly
debated topic, at least in day trading.
You guys know me. I'm often quite
skeptical about all these charts
patterns you see on the internet that
day traders memorize when they are used
in intraday in day trading. But like I
mentioned before in my various swing
trading video lessons when it comes to
swing trading, I actually have seen a
lot of examples of these candlestick
charts patterns working out on the daily
chart for the large cap stocks and again
on the higher time frames. But again,
I'm not saying they're going to work
100% of the time because nothing in
trading is ever guaranteed. But I have
seen these daily charts patterns for
swing trading repeat and work out again
and again in the past. Since you are
swing trading and holding on to these
positions for a longer period of time,
the charts are a bit more forgiving and
you have more time to let a trade work
out. In my previous master class on
swing trading, I went over the three
basic swing trading chart patterns. If
you haven't seen that video, make sure
to check it out after this one. But
here's a quick review. The three
fundamental chart patterns you need to
know for swing trading are the breakout
chart pattern, the breakdown pattern,
and consolidation chart pattern. But
okay, now you must be wondering, Shay,
then why are you sharing even more chart
patterns for us to learn today for swing
trading? Okay, here's the thing. There
is no strategy and no chart patterns
that are guaranteed to work in all the
market conditions. If you found the one
though, then call me. Unfortunately, gap
ups hold and multi-day breakouts have
been really scarce. I have barely found
any good breakout swing trades since the
last two months, and this is to be
expected. That's why I've turned to
scanning for chart patterns that work
best in a bare market or just a
downtrending market in general. Let me
share that with you right now. Pattern
number one, the wedge breakout. So you
can see on this example over here, AU,
this is a gold stock. You can see the
breakout here. The stock had gapped up
over the
3352's resistance here. But before there
you see like a downtrend that's been
retested once, twice, three times. That
downtrend over here once the stock
breaks out through that little wedge
here. You can see the wedge squeezed
squeeze squeeze tighter and the stock
finally reclaims over 8 EMA and breaks
out. Yes, it is still technically a form
of breakout chart, but you want to make
sure that there's at least a retest of
one to three weeks of downtrend like the
one over here on AU. Again, a breakout
is when a stock breaks through a
resistance, which you can see here
around the 3350s. But for a wedge
breakout, it needs to break the
downtrend and break out above that
resistance. There's many names for this
chart pattern number one. Many people
call this the triangle breakout, the
rising wedge, or just a really simple
downtrend break. Another really clear
example here is ERJ. This is a energy
stock. I believe you can see over here
on the daily chart we have the 200 SMA,
the 8 EMA again. These are the two
indicators I use for swing trading on my
daily chart. So you can see another
wedge pattern forming here. A stock
broke out and then you have this
triangle pattern here over here as you
can see. And once the stock retest that
downtrend and breaks out then boom you
break out above to new um I think this
52- week highs and same thing down here
as well from maybe like last month. Uh
you know like a a rising wedge over here
triangle downtrend breakout. Once the
stock reclaims over that ATMA, breaks
out above that downtrend, then you have
a nice breakout pattern. Again, the big
difference between this wedge breakout
pattern versus just a generic daily
resistance breakout is that the wedge
pattern often has like you can see on
the on the charts here, a couple days of
consolidation. A lot of these breakouts,
if you have the time to consolidate,
often times the success rate is
drastically higher versus like a one-day
resistance breakout like this one. Okay,
let's talk about the entries, exits, and
stops for this chart pattern number one,
the wedge breakout. So, with these kind
of breakout patterns, even though it's
clear in hindsight, if the candle is too
extended like this one, I actually don't
like to get in on this kind of candles.
I think that's a little bit of a chase
and the riskreward is not that good. I
prefer what we saw earlier with um
ERJ. Let's see here what we saw earlier.
I prefer these kind of consolidation
candles. You can see the stock is riding
along that 8 EMA once again forming that
wedge pattern here. And once we have a
candle one, candle one or two that have
broken out above that daily downtrend,
remember that downtrend has to have been
retested for at least a couple of days
to a week. And once we have an actual
candle that broke out riding above the
ATMA and above that daily downtrend and
know above that downtrend wedge
breakout, then this is the kind of
candle I like to get in for a swing
trade. I share a lot of these swing
trading and day trading charts patterns
and ideas in my free weekend watch list.
If you're interested in checking that
out, you can sign up for free down
below. The next chart pattern we'll talk
about is the long-term downtrend break
chart pattern. Okay, it sounds really
similar to the previous wedge pattern,
but it's not. Hear me out. Let me show
you a couple of examples here. The first
one is INTC Intel. You can see this
stock when I say a long-term downtrend,
I mean this stock has been a downtrend
since the beginning of uh 2024. You can
see a stock over here trending below
breaking down that 200 SMA and then it
traded for a while, broke out, never
retested or reclaimed that and then just
a huge gap down and sell off again. So
for these long-term downtrend breakout
charts, you're looking for specifically
the large cap stocks. This would not
work on small cap below the 800 million
market cap. Just don't because those are
dilutive. Those are not the kind of
swing trading candidates to look at. So,
you're looking for these stocks that are
trading below the 200 SMA and now it's
starting to ride above the 8 EMA. You
can see that even though Intel was still
below the 200 SMA for a while, it's
starting to reclaim over that. you have
a retest of breakout above the 200 SMA
pull back and now you're attempting that
again. So this is a kind of wave or kind
of reverse of a trend that I'm trying to
catch with a specific chart pattern. It
would be even better if there's a
catalyst for that in which for Intel it
did. So, I believe it's uh I forgot it's
this day or that day, they announced
that a new CEO who's very experienced in
a semiconductor industry is taking over.
And for a company like Intel that's been
trending downtrend for years and really
really beaten up, this is something
transformative that can be really
positive and transformative for the
company. So that's why for the stock
with that catalyst in mind, if it's able
to break through that 200 SMA, reclaim
that ATMA breakout and break through
that 200 SMA, we can see a huge reversal
of that long-term downtrend. And we want
to see a breakout to the upside um from
here, $24 potentially to that, you know,
28 and $30 or above. Let me show you
another example here with U CRS Corsair.
So you can see another example of a
long-term downtrending stock. The stock
has been below that 200 SMA since um
late 2023. It just being a downtrend.
And over here only at the beginning of
uh 2025, then it's reclaiming that 8th
EMA again. It needs to reclaim that and
then trending up above towards that 200
SMA. you can see a nice 200 SMA breakout
and the stock rallied up higher from um
this is one around like $850 to
$12. So this is a kind of long-term
downtrend break chart that I'm looking
for in terms of the executions, entries,
exit, and stop out is very similar to
the previous pattern number one, the
wedge breakout. So again, you're still
looking for that long-term downtrend to
break around here to get in. Again, I
want it to already be trending up
towards that 200 SMA or even over that
200 SMA just like what we saw for Intel.
So, for this example, I would get in
right over that 200 SMA and ATMA cross
also synchronize with a downtrend break
right along that ATMA again for that
breakout move. And then for this one,
the stocks I will put below the 200 SMA.
I actually like this particular charts
pattern more than the first one, the
wedge breakout charts pattern because
the good thing with this particular
charts pattern versus the previous is
that a lot of times the breakout and
consolidation is often slow and steady.
Like you you're not seeing like a giant
breakout candle like this one all the
way here. So, it gives you a little bit
of time to build your position and to
ride that wave slow and steady up versus
what you saw earlier with a wedge uh
breakout pattern. A lot of times the
first day of the breakout, that's it.
The stock shoots up and uh you missed
your entry. Okay, let's talk about the
next chart pattern for swing trading.
But before you do so, here's a quick
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down below that 200 SMA and selling off
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other hand, is breaking out of that 200
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Now, back to the
video. Pattern number three, the
oversold chart pattern. This is a one in
which I'm looking for potential
reversals. I would say out of the three
chart patterns that you're learning
today, this one is a little bit harder
to find, but the riskreward is really
good when you do find them. Essentially,
for this chart pattern number three, the
reversal chart pattern or oversold
charts pattern, I'm looking for stocks
that have experienced short-term selling
pressure that's really drastic and big
drops below the 200 SMA for the last
couple of weeks or a month. And I'm
looking for signs that this stock is due
for an eventual bounce. But the key here
is that you must really understand the
catalyst that caused the company's stock
to sell off. so drastically below the
200 SMA and the catalyst must be
something that the company or the stock
can recover from and that is shortterm
not permanent. Okay, let me explain
further with some examples here. So you
can see this stock KBA you can see that
this stock was on a tear for the entire
2024. It went from like 33 all the way to
to
$160. But recently in February, the
stock had a huge sell-off from 130 all
the way down, cracking that 200 SMA and
below to 110 below 100 and now it's
settling in at around $80. And another
reason is that the stock the the
earnings report from um for Q4 that was
reported at the end of February just
wasn't that impressive. So this is the
kind of chart I like. Remember 200 SMA
breakdown here. The stock has sold off
drastically. You can see this from 112
all the way down to $80. It barely even
bounced until recently. Now, what I'm
looking for is when the stock was
selling off, you can see it's selling
off trending below the 8 EMA. I'm
looking for the stock to reclaim over
that 8 EMA once again, the momentum
indicator I love using, and start
consolidating. So you can see it's
starting to break out here on Wednesday,
March 19th, you know, reclaiming over
that ATMA. And this is the signal I'm
looking for. So with this, you know,
once it starts reclaiming, where I want
to get in is a reclaim of ATMA. And I
will be risking below that. So, you
know, if you're conservative, I would
risk all the way at
$75, but I understand not everyone's
comfortable with that. If you want to
use tighter risk, then I'll risk just
below, you know, give it some room like
maybe a dollar below the 8 EMA. And big
picture wise, you're looking for a
reversal, right? Because we talked about
the sell off is so drastic here, you're
looking for a technical bounce towards
that 200 SMA. But with this one, you
know, you definitely want to be
cognizant of the recent resistance. So
for this one, the first target I'll look
at around $97, eventually around
hundreds over here. Those are the daily
resistance for Cava. So, another example
here, ACN. You can see the stock really
sold off drastically from 380 down to
340. Um, you had another gap down here
with um earnings catalyst not as great
all the way down to
$300. Now, for this one, it's not ready
yet. You can see the stock has not
reclaimed or caught up to the ATMA just
yet. But again like I often talk about
for all the swing trades almost all of
them a lot of times after you scan the
stock it doesn't means it's actionable
the day you find the potential. So for
this chart setup I will save this ticker
in my watch list and just look at it
every single day near close and I'll see
whether the stock is reclaiming that EMA
and whether it's setting up for my
entry. Remember you're not in the
business of trying to like pick the
bottoms and then like you know catch it
folding knife. Who knows, this stock 305
can keep falling as well. Here are some
more examples of this chart pattern, you
can pause it on screen for a closer look
of Adobe and Crowd Strike. And before we
move on, if you're enjoying this
comprehensive swing trading video lesson
so far and you want to see more, please
remember to hit the like button down
below so more people who are interested
in swing trading will see this video.
and I really appreciate it. With the
three swing trading chart patterns that
you learned today, there are a lot of
similarities. But remember, trading is
very nuanced and so is pattern
recognition and your entries, exits, and
take profit. Not all the breakout
patterns are created equal. In a bull
market maybe, but in a tougher market
environments that we've seen lately,
this kind of breakout is very risky.
While this kind of wedge consolidation
and downtrend break has a much better
riskreward and win rate, it's these
nuances that can determine the success
rate of these chart patterns for swing
trading. Okay. Now, in the next section,
we're going to cover how to find these
profitable chart patterns to swing trade
all for free. So, the first step is just
to go to fimvis.com and go to the
screener section over here. This
screener, the free version, is perfect
for scanning for swing trading charts.
Since the market data is delayed by 15
minutes, it's not good for day trading.
I wouldn't recommend using delayed data
for day trading, but for swing trading,
that's perfectly fine. I use this all
the time on the weekends. So, let's talk
about the criteria I'll use. And this is
a very simple criteria. You can use the
same settings for any scanner you use,
whether it's a free version or paid. So,
market cap, I always scan for stocks
above two billion. You know, I do not
like to swing trade small cap stocks.
Price definitely over a dollar per
share. And now you can see there's 96
pages of results. That's way too many.
Again, we need to narrow this down. So,
average volume, I'm looking for at least minimum
minimum
750,000 volume for day trading. that
wouldn't be enough, but for swing
trading, that's totally fine. So, I'm
looking at over
750K. You can see that narrows down all
the results drastically. Now, current
volume, I'm looking for over a million
on the day. And then the most important
one is relative volume. Now, this is the
one you can play with. I'm looking for
relative volume of anywhere between 1.5
or I'll try two or sometimes when
there's a lot going on, I'll try three.
So you can see uh I'll try any of this
range for now. Let's try over two. So
remember relative volume just shows you
the current volume of the stock compared
to the average over the last 3 months.
So if you hover over relative volume
here, it's a good indicator to use for
momentum. So you can see that this is
still a lot of results. So you can play
around and even do over three if you
would like. So uh and once we're here, I
like to you can see the tabs over here.
this overview valuation. Um, the really
useful ones I like to use when I'm
screening for swing trading charts is
the charts one. You can see if I click
it, it'll show me like a quick preview
of all the results of the charts. So,
you can use a charts. You can see it
gives you like a really cool snapshot of
the daily chart on the stock and some of
the basic indicators. Um, but the one I
actually use 200 SMA. Um, but the one I
like more is TA. essentially is
technical analysis. If you click TDA,
it'll also show you the RSI, some of the
indicators on the side. It'll show you
the daily SMA, you know, how much is
like 10% off the uh below the daily SMA.
It'll show you yearto date, some of the
relative volume, you know, 52- week high
range. So, this is the one I like to use
the most when I'm screening for
potential tickers. And this is how I
found some of the tickers earlier for
the three chart patterns that you
learned today. So let's take a look at
these chart patterns one by one and I'll
tell you how I analyze them and whether
they fit the three patterns we learned
earlier. So ACN you already saw this is
the oversold reversal pattern that we're
looking at. You can see the indicators
over here. Again the one that we
actually only use is a 200 SMA here. ADM
this one is in a longterm downtrend. So
you know this is also don't show any
signs of reversal. So I wouldn't pick
this one. This one ADMA you can see this
one is considered you know also like a
wedge breakout here. So let's take a
look on the bigger charts here. ADMA. So
you can see on the charts over here this
one actually have a long-term downtrend
break here. You can see the triangle
breakout downtrend break and the stock
is reclaiming over that ATMA. So, this
one would actually fit the pattern for
pattern number one, the wedge
breakout. Um, ADT, you know, I don't see
anything there. It's riding the uptrend,
but I don't really see any um really
obvious long-term downtrend break. This
one, I think this one, AESI, you know,
oil stock here. This one will actually
fit the oversold chart pattern. If you
take a look at it over here, the RSI is
also below 40. it's relatively low. RSI
stands for relative strength index. It
when the number is low, usually around
20 or 30, it shows you that the stock is
generally speaking oversold. But again,
like obviously you need to put it up on
the actual charts here and take a look at
at
it. So, AESI, you can see the stock is
way below the 200 SMA. Um, looks like it
is also earnings miss here. You can see
the E sign here. Here you can see it's
reclaiming over the orange line which is
the 8 EMA. So this one is also worth
taking a look at. You can see this one
is what I would call a daily breakout
chart that we learned from the previous
um swing trading master class video. You
can see a huge daily range resistance
breakout. This line here around $79 and
a stock is breaking above it. But in
this market environment, this will not
be the kind of chart pattern I will want
to swing trade. ALK this one is an
airline stock. So I would personally
stay away from tech airlines um all
these really sensitive to current market
environment. So you can see there's
actually a lot of potential results. But
let me just show you this one in a
downtrend. I would not take a I would
not like this one. This one oil and gas
it's been doing well. AM you can see
it's been uptrending. This one you can
see that it's kind of a triangle
breakout over here. You can see that's a
good thing with VINVIS. It kind of shows
you some basic technical analysis charts
pattern. So, this one is a rising wedge
breakout as well. AM nothing here. This
is not a long-term downtrend at all. In
fact, this AMKR is the kind of chart you
want to avoid. There's no breakouts at
all. It's not making higher lows. This
is one probably going to continue fading
lower. So, using this very simple
scanner with all the free settings that
you saw earlier, it's how I found some
of the chart patterns that you saw
earlier in the video. Remember, with
these criteria that you see on screen,
you can pretty much use it for any
scanner that you're using, free or paid.
Or if you have questions regarding the
chart analysis process we just did,
analyzing the scan results one by one,
then you can ask me in the comment
section below. I'll do my best to answer
them. I have even more swing trading
resources below in the video
description. More in-depth free master
class, the brokers and charting
platforms I would recommend for swing
trading. Everything is down below.
Coming up next in this video over here,
I share my favorite swing trading
strategies with you step by step. And
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