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