Swing Trading Filters for Finding High Momentum Stocks | VPT

The following stock filters or screens look for stocks that have seen recent momentum coupled with a long-run uptrend ( or entering an uptrend ). not every breed on the lists is worth trade. We still need to manually go through the list and count for the veracious trades setups, but these stock screens are great at finding some big movers .

How to find stocks to swing trade

In the Stock Market Swing Trading Course, I lay out some of my favorite patterns that I look for when swing deal, vitamin a well as ways to find those patterns. When we find a practice, that is great, but finding those patterns in stocks that are besides moving well can be challenging. Most people I interact with, who are struggling with their swing trade, just aren ’ deoxythymidine monophosphate patient adequate in waiting for the very good setups. If this is a problem for you, possibly some alternate screens will help you zero in on some high momentum trades .

Two Parts to a Great Trade

There are two parts to a great trade. First, we need the proper setup. I trade setups that have shown a consistent tendency to produce winning trades 50 % + ( and normally 60 % + ) of the time. But if you find a capital apparatus in a stock that doesn ’ t have a lot of momentum, the returns for that trade in dollar terms are going to be minimal. The risk/reward may look estimable on the come on, but if that stock is merely going to move 5 % ( with your gamble being half, or less, than that ), that is nowhere cheeseparing a good as a malcolm stock where we can make 20 % or more in the lapp come of time. so recover momentum stocks is key .
think of it this way. Assume you put on average about $ 10,000 into each swing trade you take. This may vary based on how far your barricade personnel casualty is from your entrance steer, but for now, let ’ s assume you find two stocks that offer about the same risk. Your stop loss will be going about 5 % below your submission point.

Trade 1 offers a risk of 5 % with reasonable potential for a 15 % gain. Based on how the stock has moved in the past, following prior entries that a stock price has typically moved about 15 % before experiencing a meaning pullback. As a swing trader, getting out before that pullback is prudent, as that money can then be put into early trades rather of watching your profits likely evaporate .
Trade 2 is NOT a dense mover. It is already up significantly over the last year or two. When it forms a valid trade setup the price has been running 30 % to 40 % before pulling back. It has formed a rare taut consolidation where we can enter with the same total of risk as the neckcloth above .
If choosing between these two trades, we should always take the second gear one. Some may think that trade one is less bad because the store monetary value moves less. But over many trades, we are compensated much better for the risk we are taking by Trade 2, or trades like it. In both cases, we are risking $ 500 ( this should equate to less than 2 % of your account ). With Trade 1 we stand to make about $ 1500, where with Trade 2 we stand to make about $ 3000, probable over the like come of fourth dimension. In fact, since high momentum stocks tend to move very cursorily, that bigger reach may come even quicker than the $ 1500 gain in the slow-moving stock .
I am not saying only deal stocks that will potentially move in your favor 30 % +. What I am saying is that with finite amounts of capital, we need to find the best stocks to deploy it in. Don ’ thymine get suckered into a trading a slow-moving stock precisely because it is the first valid trade wind frame-up you see. If you look a snatch more, you may find stocks that offer much greater risk/reward profiles because the monetary value is moving with much more momentum .
Our goal is to find the best trades out there, which means ( 1 ) a good frame-up ( 2 ) in a stock certificate that is moving very well. Sometimes the best trades we find during the workweek will be a slower moving neckcloth, and that is very well, because it is the best that is out there and inactive provides a beneficial risk/reward .

Finding High Momentum Stocks

Assuming you know some trade setups or patterns, the future part of the equation is finding a stock that will maximize the potential gain on that frame-up .
I primarily use Finviz and StockRover for finding swing trades. The screens below function StockRover criteria. For the most part, alike criteria can be inputted on Finviz .
here is a swing trade percolate I use to find stocks with potent long-run and short-run price movements. You could add in extra parameters to filter the list even more .
I call this one the Price Spike :
1-Year return > 40%  ( This shows the stock has been firm for most of the class. )
10-Day Return > 8% ( Stock has shown a batch of late military capability. I opted for 10 days because it will even catch stocks that had a runup but that have consolidated for a few days. )
Average Volume > 100,000 ( Adjust as needed. A lower threshold means you may find some of those newer companies that aren ’ deoxythymidine monophosphate vitamin a well known but are truly exploding. A higher threshold filters out the low bulk, which is full if you are taking big positions. For canadian stocks I use a much lower brink of 10,000 since the canadian market is much smaller than the US market. )
Exchange = X ( input the commute you want, such as NASDAQ, NYSE, Arca, Toronto, Venture, OTC, etc. )
Price > $1 ( I like to avoid the real little stocks. If it is a good stock, it will get above that $ 1 punctuate finally. For canadian stocks I normally keep this at $ 1, but for US stocks move it up to $ 5. )
Price Versus 50-Day Average (%) > 115% ( This is saying that the current monetary value must be above the 50-day affect average, which we would expect if the price has been strong recently. The 115 % means the price is 15 % of the average price, above the modal price. Since stock screeners vary, you can merely put “ above 50-day median ” ) .
Optional: Price > 100-Day or 200-Day Moving Average ( Add in this filter to further screen the results. You could besides stipulate that the 50-day and 100-day are above the 200-day, for exemplar. This focuses on stocks in longer-term uptrends, but eliminates stocks that are starting to spike up after a deeper correction. )
There will distillery be a distribute of bullshit stocks with this filter. When running on US and canadian exchanges I normally get about 100 results, and normally find at least several trades that are worth taking or are very stopping point to forming a valid setup .
To find short circuit trades, make the returns veto, and look for stocks below the moving averages. Everything else stays the lapp .
here is another one, I call it Small Emerging:
As a technical trader, I am largely concerned with what is going on with the chart. But the big institutions look at earnings and sales. They are crunching numbers and trying to figure out how much a company will be deserving in the future if it keeps growing. They may buy belittled companies aggressively because they are growing and will one day be big companies with big price tags on their standard. therefore, this screen looks for momentum and trends in smaller companies that have growing sales .
2-Year Return > 65% ( Capture all stocks that been strong over the longer-term. )

Average Volume > 100,000 ( Adjust as needed, but remember smaller emerging companies may not have big book so far. For Canadain stocks, I may drop this polish to 10,000. )
Exchange = X ( Input the exchanges you want to screen. )
Market Capitalization < $400 million ( Focusing on smaller guy here, which tend to have bigger moves in share terms than the huge companies that everyone knows about. )
Price Versus 200-Day Average > 90% ( This basically means that the price is finale to its 200-day go average, or above it. I put 90 % so that if a stock is a few cents below its 200-day it won ’ triiodothyronine be eliminated from the filter results. )
Sales Quarter-over-Quarter Change > 20% ( potent sales growth in the most recent quarter, compared to same quarter last year. )
Sales 1-Year Change > 20% ( At least 20 % increase in sales over the last year. Raise this number to hone in on stocks with even stronger growth. )
Optional: Sales 3-Year Change > 30% ( This will show sales have been growing over the longer-term, but will besides eliminate companies that are newer and seaport ’ thyroxine been around for 3 years. )
Optional: Price Above 50-Day Average ( If you want to find stocks that have some recent military capability, add in this filter american samoa well. )
Optional : Add in a filter that looks for earnings growth, quarter-over-quarter, or over the last class or two .
finally, let ’ s front at one more. I call this one the Top Stocks, because it captures stocks in uptrends that are closing in on former highs .
1-Month Return > 10%
2-Year Return > 100%
Average Volume > 100,000 ( Adjust as needed. )
Exchange = X
Price Versus 52-Week High > 80% < 105%  ( If the 52-week high is 100 %, then this filter is finding stocks that are at least at 80 % of the high but not higher than 105 %. For example, if a stock makes a 52-week high of $ 100 a calendar month ago, the stock would show up on the list american samoa long as the most late price is between $ 80 and $ 105. )
Price > $1 ( or $ 5 )
Flip the parameters to look for short trades .

Stock Swing Trade Screens – Final Word

The unfortunate thing about screens is that they are accurate. There may be a great deal frame-up out there, but possibly it lone is only up 9.95 % in the last calendar month, so it doesn ’ deoxythymidine monophosphate show up in the top Stocks screener results. This is why I will use a few different screens, to look for different elements, every couple of days. I don ’ thymine go through each screener every day, rather I go through one or two on the weekend, then another after the close on Monday, then another after the close on Tuesday or Wednesday, etc..
As I go through them, I note any trades of interest on a piece of newspaper. After I have gone through the whole list of results, I go back to the ones I wrote down and do a more in-depth discipline. I look to see if the frame-up is in truth valid, what the risk/reward potential is, and besides check if there are any earnings announcements or other things I should be aware of .
For every one standard that is setting up correctly immediately ( and so I put out an order ), I will find about 10 that are very close to setting up ( no order…yet ). All those ones that are “ close ” are written down, and I check back on them regularly. If they fail to form a valid frame-up, I cross them off the list. If it forms a valid apparatus, I place an holy order.

If this written number gets extensive, I don ’ triiodothyronine blind for a while, and alternatively barely routinely check all the stocks on my written list. Once the list thins out ( as trades are taken or crossed off ), I go bet on to screening using the screens above or those covered in the Swing trade Course .
Alter these screens to suit your scheme, or plowshare screeners that you have found helpful for swing trade in the comments below .
By Cory Mitchell, CMT

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