Underlying setups are important | stockbee


Underlying setups are important

Today the market bounced back after 4 days of down moves. That should not surprise anyone as market tend to show these kind of counter trend moves  when they are down in a row.

Most important thing from swing trading point of view is quality of setups showing up on given day. Today there were lot of good swing trade candidates.

The 4 to 5 days of selling has resulted in many stocks going sideways and not breaking down. When the weight of the market was lifted today , they had nice breakouts.

If you see the list of stocks I posted in the morning for anticipating breakout, handful of them had positive breakout today.

Besides that if you regularly run range expansion scans, you would have seen lot of nice breakouts. The key to successful swing trading is to have your process well set. One time effort is required to do that. After that you will get daily candidates to work with.

Instead of following a recommendation by someone or buying based on Twitter or other sources, you must develop your own method. It might take months but once you put that in place you have life long skill.

With number of breakouts today, if market follows through for 3 to 4 days, there will be lot of swing trade opportunities for momentum burst kind of trading.

I will have some good swing trade setups from our scans up on site in the morning along with list of Top 50 stocks and breakout anticipation list. 

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