How to Find Stocks to Swing Trade: A Complete Guide
Swing trading is a powerful trading style that focuses on capturing short- to medium-term price moves—typically over a few days to a few weeks. The key to success? Knowing how to find the right stocks to swing trade.
In this guide, we’ll walk you through step-by-step methods to identify high-potential stocks for swing trading, along with tools, tips, and strategies to improve your results.
What Is Swing Trading?
Swing trading involves taking advantage of price “swings” or momentum in the market. Unlike day trading, which closes trades within the same day, swing trading allows more time for setups to play out.
Goals of swing trading:
- Capture gains in trending markets
- Avoid overnight overtrading
- Balance risk and reward
How to Find Stocks to Swing Trade
1. Use Stock Scanners and Screeners
Start with a stock screener to narrow down your universe of stocks based on:
- Price range
- Volume
- Volatility
- Technical indicators
Popular Tools:
- Finviz
- TradingView
- StockAlertPro Signal Scanner
- Market Chameleon
Scan Example:
- Price above 50-day MA
- RSI between 40–70
- Average volume > 500K
2. Focus on High Volume and Liquidity
You want stocks that are actively traded to ensure:
- Tight bid/ask spreads
- Easy entries and exits
- Less price manipulation
Look for:
- Minimum $500K to $1M average daily volume
- Well-known stocks or ETFs
3. Look for Breakout or Reversal Patterns
Technical patterns are key in swing trading. Some patterns to watch for:
- Breakout patterns: Cup and Handle, Ascending Triangle, Flat Base
- Reversal patterns: Double Bottom, Inverse Head and Shoulders, Bullish Engulfing
- Pullback to support: Great for trend continuation trades
Use platforms like TradingView to visually screen these patterns.
4. Monitor Sector Strength
Find out which sectors are performing well—this improves your odds. If tech stocks are strong, look for swing setups within that sector.
Tools for sector analysis:
- Finviz Heatmaps
- TradingView Sector Performance
- StockAlertPro Sector Signals
5. Pay Attention to Earnings Calendars
Avoid entering trades just before earnings announcements—unless you have a specific strategy. Post-earnings breakouts often make great swing setups due to increased volume and volatility.
Use free tools like:
- EarningsWhispers
- Nasdaq Earnings Calendar
- Yahoo Finance Events
6. Check News and Catalysts
Stocks with fresh news—mergers, product launches, analyst upgrades—tend to move fast. A good catalyst combined with a technical breakout can create a strong swing opportunity.
Use:
- Benzinga Pro
- Seeking Alpha
- Twitter/X for breaking news
- StockAlertPro real-time signal alerts
Key Indicators to Use for Swing Trading
- Moving Averages (50/200 EMA/SMA) – Identify trend direction
- MACD – Signal crossovers for momentum shifts
- RSI – Spot overbought/oversold zones
- Volume – Confirm breakout strength
- VWAP – Good for entries near fair value
Risk Management Tips
- Use stop-loss orders to protect your capital
- Never risk more than 1–2% of your capital per trade
- Position size based on risk-reward, not gut feeling
- Track trades in a journal for review and improvement
Conclusion
Knowing how to find stocks to swing trade gives you a huge advantage. Focus on technical setups, sector strength, volume, and catalysts to identify high-probability trades. With the right tools and discipline, swing trading can be a consistent strategy that balances time and performance.
FAQs
1. What’s the best time frame for swing trading charts?
Use daily charts for overall setups and 4-hour or hourly charts for entries.2. How many stocks should I swing trade at once?
Start with 1–3 positions and increase as you gain confidence.3. Are penny stocks good for swing trading?
They can be risky due to low volume and high volatility. Stick to quality setups.4. Do I need a premium scanner to find good swing trades?
Not necessarily. Free tools like Finviz and StockAlertPro offer great filtering options.5. Can I swing trade part-time?
Yes! Swing trading is ideal for part-time traders who can analyze after market hours.
