How to Start Swing Trading for Beginners 2026

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In the past couple of weeks, I've 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 4pm.
If you ever struggle with day trading, or you're juggling a demanding 9-7 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'll 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'll also learn about the technical setup for swing trading.
You'll learn about timeframes, 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 setups, 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.
Alright, 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've 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 volatility for
day trading is just brutal.
When I was actively day trading full time, I would wake up at 4.30am to 5.00am here in
Vancouver due to the time zone, in order to scan for stocks to trade, build my watchlist,
and be ready for the market open at 6.30am.
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 market 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 timeframes, indicators, supply and demand key levels,
and later on, chart patterns.
In trading, the time frame of a chart refers to the length of time that a trend is presented
in a market.
It's used by day traders and swing traders to analyze price movement and make decisions
based on their trading styles and strategies.
For example, 1 minute or 5 minutes.
On the screen over here, this is an example of a day trade that I did.
On the left hand side, this is a daily chart.
But you can see on the right hand side, this is the 5 minute chart.
This is where I execute my trades.
And this is the entry, and I got out on the 5 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 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 trades.
I got in after this breakout, pulled back 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 $1, $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 $0.50, $0.60,
or even $1 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 shorter term time frames, later on in the video, when we're
talking about strategies.
Alright, 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 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 8 EMA is a momentum indicator.
I use it to find whether a 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 8 EMA.
You can see that it's steadily reclaiming over that 8 EMA and slowly grinding, grinding
back up.
And once it starts to break out, that's when you see a gap from the candlestick charts
to the 8 EMA.
So that's a sign of a breakout.
We're going to talk more about these nitty gritty details later of the executions.
But for now, you just need to know that 8 EMA is a momentum indicator.
It's a good sign if a stock is riding along that indicator for a potential breakout.
Next, let's talk about the 200 SMA, which is this purple, 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-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.
Alright, 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 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 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 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 loss or take profit.
We're going to talk more about these indicators later on when I talk about my favorite swing
trading strategy.
Alright, next, I think you guys are going to love this upcoming section.
I'll be sharing my three favorite swing trading chart patterns, along with their potential
entry, stop out, and take profit.
I want to preface by saying that these three chart patterns that I'm about to share with
you, they work best for larger cap stocks, at least above 1 billion market cap.
Because 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 multi-month resistance.
So on the chart 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 days close, the stock was 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.
Another one recently that we found is Tilray.
You can see another similar thing here.
This one is actually above the 200 SMA.
You can see 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
is over at least a multi-month resistance.
What does that look like?
You can see in Lululemon, previously before this day, there's a multi-month resistance
around here.
You can see that the stock touched that area.
This is the 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 multi-month resistance.
And the gap has to be above that resistance.
So with that logic, if you go back to the Tilray 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, earnings beat or guidance beat.
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 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 write it along 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 3-4 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.
Alright, let's move on to chart pattern number 2, 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 it's really similar to 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 peaks, or these resistance areas that stand out.
If you line up these tips or the resistance areas, here you can line it up with the 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 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
downtrend line over here.
Second, it's that it's reclaiming the 200 SMA.
You can see it's starting to break out.
And the last next couple of days, it's been 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 charts, 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 chart pattern,
which is a long term downtrend break, is that once again,
you want to make sure you're only doing this for stocks 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.
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 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 then you have resistance around 277, and then a little bit over that, 290s.
So these are the potential price targets.
All right, let's talk about chart pattern number three, the oversold chart 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 short-term 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 an 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 hundred dollars drop overnight.
And most importantly, you're dropping below that 200 SMA,
the purple line we talked about.
And you have a lot of volume in selling pressure.
And you can see since then, the stock sold off from at the end of October 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 that caused this huge drop overnight,
the catalyst must be something that the company can eventually recover from.
And it's short-term, not permanent.
So another example here that we can look at recently is Netflix.
You can see same thing after the recent earnings and then the stock split.
And recently, they are placing a bid to buy Warner Brothers, one of the divisions.
And the stock just continued 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, once it sold off, it's below that 800 SMA 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 800 SMA.
So that's why again, once again, ATMA comes into play.
It's a way for me to find entries on a lot of these swing trading setups.
So the close of over 800 SMA would be my entry.
And the low of that day's candle would be my exit.
So in this case, my entry would 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, in this Meta example, $615, that's how you get in here.
You have a lot of upside all the way to $640s and then the 200 SMA at $670.
So it's up for you to gauge whether that risk reward is worth it or not.
So we just talked about the three chart patterns that I love for swing trading.
Next, I'm gonna 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 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 just 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 Finviz.
So if you go to finviz.com, if you go to screener over here,
now we're gonna do a couple of really easy presets.
Market cap, I'm looking for stocks over $2 billion.
They don't have $1 billion available, that's why.
Price over $1 per share.
Average volume, I like to look at at least over 500K.
Relative volume, I like to look at over 2.
Current volume, I like to look at at least over 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
that fit my chart pattern.
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 that downtrend
to fit the chart pattern number two.
You can see another one here, FROG.
You can see just really quickly here,
you can see that there's an overnight gap up.
And now if you look at the indicator on the chart,
it's probably trending along the ACMA.
So this is one for potentially for pattern number one.
So anyways, the Finviz 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 one minute or two minute charts.
You're looking at a daily.
So that's okay.
But if you're day trading,
the delayed charts and the data simply wouldn't work for you.
But yeah, this Finviz screener is really easy to use for swing trading.
And if you want, you can take a screenshot of these criteria over here.
The only ones I would play with is average volume,
either over 500K or 750K and relative volume.
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 at least the chart pattern number one and number three.
There's also a few other options for scanner for swing trading as well.
One that I like a lot is the Webull scanner.
They have a free desktop platform with, I believe it's 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 Finviz and Webull for the free option.
I'll leave links to all the platforms we just talked about,
which is free and paid,
including 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
Centerpoint 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 the Interactive Brokers desktop platform,
which is a lot easier to use than their original TWS.
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
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 Tradingview.
It's mostly a web charting platform,
but you have the option of connecting to different brokerages to Tradingview.
Essentially, Tradingview is an execution platform.
It's not a broker by itself.
I personally only use Tradingview for charting and a lot of demos,
like you see on all my YouTube videos.
I'll put links to all these trading platforms
and discounts down below for you to check it out.
Alright, finally, we can talk about my favorite and very simple
technical breakout strategy for swing trading.
This is a strategy I use for my current swing trades that you saw earlier on GM and DG,
that's making me around $30,000.
There's a three step process for this swing 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 the 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 chart pattern
during the middle of the day after 12pm 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 12pm
or sometimes as early as 11am until the market closes at around 4pm.
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 follow through
riding along that 80mm momentum during the breakout on the daily chart.
So to do so, let me show you the scanning criteria
that I use for scanning 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.
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'll show you a bunch of these tickers.
All these stocks are gapping up, 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 3%.
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 DMA 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 charts patterns that we talked about earlier.
So let's take a look at the first one here, Tilray.
You can see that, yes, it's a daily overnight gap up,
but like we talked about earlier, it's not breaking through multi-month resistance.
The resistance that's breaking through, it's from November of last, which is last month.
So nope, PSNY is the next one on the list.
You can see, nope, even though it had a small change overnight, nope, not ideal.
It's not even a real gap up.
You, okay.
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, 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 we're putting everything you learned one by one together now.
Next, we have EVCM.
Nope.
You can see that you are just about testing that resistance, multi-month 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.
This is an example earlier of an overnight gap up and above that multi-month resistance here.
You can see.
So that's good to see, but the 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 fits this kind of strategy
has to be breaking out of a multi-month resistance above the 200 SMA and riding
along that 80 SMA.
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 80 SMA, like this DG, like this GM example,
the entry you're looking for are the pullbacks towards that 80 SMA.
The day I found the stock, the stock has already broken out.
But I waited for it to pull back along that 80 SMA and I got in around $69 here.
You can see along that 80 SMA, 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 the entry, unless the stock actually continues 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've never gotten stop out because this is my planned risk.
So I got in here, $69 broke out, pull back.
And since then, it took off along that 80 SMA.
So that's why the 80 SMA indicator is really good for entries.
I wouldn't use them exactly as your risk.
I will use the support areas below the 80 SMA as your stop out area.
And let's talk about price target.
So if you look at this example, I think this is old time highs for GM.
So you don't really have any resistance to sell into.
If there was 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.
But if a stock is trading at old 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 80 SMA.
So what does that look like?
So my first exit, I believe was around $74.
When the stock starts to pull away from the 80 SMA.
So you can see that there's like a white space from the bottom of the candle to the 80 SMA.
So that's why I say call extension.
When the candle starts to take off further and further away from the indicator.
So I'll sell partials along the way, usually in quarter sizes.
So if 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 earnings 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 a 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 learn even more about my strategies.
And you can watch them over here.
