What to look for in good swing breakout setup | stockbee

1/24/2017

What to look for in good swing breakout setup


These are 2 setups which showed up in swing trading scan yesterday. They meet the following conditions I look for to select swing trade candidates:

  • prior to breakout there is 5 to 20 days of shallow pullback or sideways move
  • during the pullback or sideways move there is range contraction
  • prior to b/o day stock has very narrow range bar or negative bar
  • stock is not up 3 days in a row
  • the move prior to correction/sideway action should be linear
  • on b/o day there is volume and price surge
  • closes near high
If you setup the scans I discussed yesterday and look for setups like these , you will find some good setups.The key is to be selective and focus only on good setups.

3 comments:

rmike said...

Hi Pradeep have been a regular visitor to your blog since long. Recently came across a book called Top 10 Trading Setups by Ivaylo Ivanov which kinda reads almost verbatim of the ideas in your blog. Is he, by any chance, a stockbee member?
Best wishes n profitable trading for 2017!

Pradeep Bonde said...

He was.

rmike said...

Hmmm.... Thought as much.

A bit disingenuous of him not to accord credit where it was due.

In the tech analysis jungle out there, your blog is akin to a light beacon.

Building upon/ adapting your approach to individual circumstances like capital invested, trading vehicle, specific markets, trading timeframe, risk appetite etc is a given and, in fact, has also been actively encouraged by you yourself - but the fact remains that the original approach was your brainchild!

Good of you to display innate grace.

Regards,