How to Swing Trade Stocks Step-By-Step Tutorial

Posted On : July 7, 2021

US stocks that move a lot every day, in percentage terms (5%+). The red line is two standard deviations above the recent average. PD stock is above this level as well, and it could be the trigger to sell or short PD stock. If UL gets there it means there is a good chance it keeps going lower. The trader who bought it at $56 would sell at $54 and take a small loss.

If this happens, you are expected to wait for the two lines to cross again, creating a signal for a trade in the opposite direction, before they exit the trade. The bottom part of the chart is the Relative Strength Index momentum indicator. As you can see, UL stock was oversold at the very end of October. The bottom part of the above chart is the Relative Strength Index .

SMAs with short lengths react more quickly to price changes than those with longer timeframes. The Fibonacci retracement pattern can be used to help traders spot support and resistance levels, and therefore possible reversal levels on stock charts. There are key features to look out for when searching for swing trading stocks. Swing traders use technical analysis to identify patterns, trend direction, and potential short-term changes in trends. Swing traders will try to entice upswings and downswings in stock prices. Positions are typically held for one to six days, although some may last as long as a few weeks if the trade remains profitable.

top swing trade stocks

There is support for the stock around the $2,050 level. If this level breaks, it could be the trigger or catalyst for a swing trader to sell short GOOGL stock. In addition avus capital to having a well-defined exit strategy, successful swing traders usually consider two other things. I don’t hold swing trades through earnings announcements.

Rely on chart patterns

Open positions have the potential to be carried over from one trading session to the next and maintained for a period ranging from one week to one month. In your search, you can identify stocks with the appropriate criteria by setting parameters such as return on equity, price-to-earnings ratio, and dividend yield. Whether you are a rookie trader or a seasoned professional in the field, you can profit from these resources. The economy and the market in general tends to move in cycles of boom and bust. Thus, it is important that you know at which point in the cycle the markets you are in. Some stocks tend to perform badly during economic downturns, while some stocks are known to perform well in such circumstances.

top swing trade stocks

In fact, Kyle’s trades across all sectors, however, his most explosive profits came from trading stocks in the biotechnology sector. He doesn’t run a signal service; he only focuses on the mentorship program. If you select any of these stocks for your trades, you do so at your own risk. Timing the market swings is one of the most difficult tasks amongst swing traders.

All trading carries high risk; however, it’s how you handle that risk and plan for it that separates the better traders from the pack. Swing trading is not safer than day trading; It is simply a method that traders choose because it either works for them or compliments their trading style. With much consideration, research, and chart analysis, traders uncover which stocks have the most potential for actionable setups.

The market never slows down, which means making sound decisions is crucial to staying in the game. If you want a daily updated list of stocks to day trade, that are making the biggest moves each day, I recommend getting aFinviz Elitesubscription. Then, run a scan before the market opens and during the day.


Swing trading stocks requires you to hold the position open over a few weeks. This can make the stocks vulnerable to news that you never expected. Therefore, it is important that you already have a plan in mind.

Best Stocks for Swing Trading Today in Indian Market NSE / BSE

The dependence of historical trading activity and price movements is always not a good stock indicator, hence it is risky investment style. Below the price chart is the TTM_Squeeze, which alerts traders that https://forexbroker-listing.com/ energy is building up in stock, potentially leading to an explosive move. In this screenshot, the indicator gave the trader a heads up that the stock was consolidating, squeezing, and preparing to move.

Swing Trading with the Moxie Indicator

You can watch for those to pop on weekends on the TradeThatSwing hompage. I’ll add more sections, such as a Canadian list, over the next several weeks. The reopening of businesses post-pandemic and the huge influence of social media in everything around us makes Facebook an ideal swing stock.

It is a type of trading that tries to secure short to medium term gains in a stock over a few days or even several weeks. Some people think that day trading stocks is an easy way to earn a living. However, the truth is that like any other job, it is not easy for new traders to do well in the market. It needs a lot of effort and you must be vigilant to locate stocks with potential.

The stocks are selected based strong recent relative performance to the S&P 500. If I’m going to buy something I want it to have some “oomph” behind it. If you need a copy of the symbols to plug into your own software, you can copy them off the Finviz Tickers using the link above. If you’re looking for a way to trade these types of stocks, consider the Trend Trading Strategy for High Momentum Stocks.

A logical place to get stopped out is around the $12.10 level. If it got back up there, it means the buyers have returned. The swing trader who went short would buy back their shares and take a small loss if it got back up to that level.

You can’t see it on this chart, but last February XLRE stock ran into resistance at this level. This means there’s a chance it hits resistance there again. Before a trader takes a position, they should two targets.

As a result, there are some inherent risks that stock traders should be aware of. Stanley Black & Decker has a market valuation of around $29.7 billion. The below graph shows the stock performance of Stanley Black and Decker over the past two years. The most overlooked data for traders are economic reports on the trading calendar. They should refer to the significant dates of planned events, such as quarterly earnings reports, announcements and meetings of the Central Bank, and even major global events. Learn the basics of trading stocks and build a solid foundation for years to come.

A favorite technical indicator that Simpler traders use as part of their trading strategy is the ST-Squeeze. This indicator alerts traders when the price action of a stock consolidates, or trades in a tight range, and builds up energy before its next move. The following list is a sample of the day trading stocks that tend to move more than $2 per day, but that are priced near $300 or below. If you have plotted a channel around a bearish trend on a stock chart, you would consider opening a sell position when the price bounces down off the top line of the channel.