Learning to Day Trade - Part 19

Swing Trading

Lately I’ve been looking at swing trading or at least looking for obvious breakouts / flags on the daily chart. I created a screener to narrow the search down.

finviz screener

What this screener does is look for small caps (not low float) that are “half up” on decent volume. These are stocks that are trending higher and not trending down. It’s much more likely that a stock will continue higher if it’s trending that way.

  1. The stock does not need to be breaking out when you’re looking for potential plays. Add it to your watchlist and set alerts near the pivot point.
  2. Price does not matter so long as there is decent range.
  3. There should be a recent catalyst to carry it higher or the chart setup is perfect/obvious and will bring in buyers.
  4. There should be decent volume traded each day otherwise the spreads will be terrible.
  5. Take partials once you have some profit in order to lessen the risk.
  6. Profits take care of themselves, it’s the losses you have to worry about.

This is a perfect example of something to look for. A nice uptrending chart that is consolidating with an obvious breakout of around $28.15. This one was on the screener for serveral days so it is possible to make these trades with ample preperation.

The intraday chart is not as pretty. It had a midday crash then rebounded. You do not need to buy instantly at the open. Wait for it to prove itself.

$BOOT daily chart from finviz.com (breakout)


I am not a registered financial adviser/broker/anything. Use this information for entertainment/informational purposes only. Any tickers mentioned are not recommendations to buy/sell/or sell short. They are used as examples only.