Using Trade Ideas Scanner to Find Swing Setups
Looking for a good Trade Ideas Scanner to find swing trading setups?
I’ve used Trade Ideas for years as a “gauge” of sorts, it’s an incredible tool for the active day trader, and very clearly can show you what is moving the markets today. Check out a previous article with some of my favorite day trading scans for Trade Ideas.
But what about the longer term setups? Can a Trade Ideas scanner be used for anything other than day trades? Definitely.
Trade Ideas takes some getting used to, and it took me a while to “fine tune” a few scans for longer term setups, but I have several that I want to share with those who are active Trade Ideas users and are interested in swing trade setups. If you don’t have Trade Ideas yet and are considering, you can setup everything up here using the promo code “TRADERM15” to get 15% off.
Once you’ve got the Trade Ideas scanner installed, you can load each of these scans and alert windows by going to File —-> Load from Cloud. Then copy and paste the “cloud code” as shown below:
Without further adieu, let’s get started… Any of the settings/metrics on these scans can be modified to better fit your strategy or style:
The Trend Breaks scan is one that is alerts stocks that are moving on volume, breaking a specific range, have an appropriate short float that can add fuel to the fire, and are set to metrics that only display names that close above a specific price, and have a minimum number of shares traded on an average day. The example below is of Kroger ($KR) shown on the weekly chart. Price alerted a trend break on September 3, which was a valid falling wedge breakout and a reclaim of an important support level. That same support level ended up playing as a right shoulder to an inverse head & shoulders build. Now price appears to be breaking out of that weekly consolidation. A beautiful swing or longer-term setup as a result.
Breaking out and Moving
The Breakin’ & Movin’ on Volume scan alerts stocks that are crossing above a daily resistance level of recent activity, but are doing so on above average volume. These alerts often result in break outs that find volume during the push, that tend to see upside follow through instead of a failed breakout. So looking at the example below, you can see that $FLEX alerted several times on this breakout move early in the session. The daily chart shows a breakout of a compression coil that saw a strong move to fresh highs on a multi-day swing trade that may still carry higher.
Options Plays Magic
Options Plays Magic is a Multi-Strategy window scan that alerts stocks that are trading at twice the average volume, while also trading above the average daily volume of options contracts as well. This scan often produces breakout moves on alerts that typically see follow through on volume. American International Inc ($AIG) is a great example here shown on the daily chart. The Trade Ideas scan alerted on the day of the breakout above the recent downtrend. Looking at the bigger picture, price appears withing a broadening wedge and is bouncing from the lower support area. The sessions that followed pushes price higher to reclaim the 50d sma.
The alerts for this scan are color coded based on volume:
Green = Moving higher on unusual options volume of 300%+
Blue = Moving higher on unusual options volume of 200%+
Light Blue = Moving higher on unusual options volume of 150%+
Yellow = Moving lower on unusual options volume of 300%+
Orange = Moving lower on unusual options volume of 200%+
Brown = Moving lower on unusual options volume of 150%+
A high relative volume scan that alerts stocks that are seeing “punches” of volume on intraday time frames. While the scan can be used for intraday setups and day trades as well, I’ve found that these can result in some solid swing setups on daily/weekly time frames as well. Here is a great example with Fiat/Chrysler ($FCAU) alerting on a cup and handle breakout from the 20d/50d confluence hold and bounce.
Pullbacks above the 20sma
The Pullbacks above the 20sma scan is essentially the “holy grail” 20d pullback setup. Names are displayed that are up over the last 10 & 20 days, but down over the last 5 days. The alerted names must be above the 20 day sma. This particular alert happened on Kohl’s ($KSS) on October 31. The day closed with a doji/hammer look on the 20d to hold a retest of a former resistance level. This was an ideal swing setup into the next day’s session. From there, price bounced to see a move to a fresh high.
Pullbacks above the 50sma
The Pullbacks above the 50sma is similar to that of the one noted above, but involves the 50 day simple moving average. Each of the alerted names are up over the last 10 and 20 days, but have pulled back to the 50d. This is an example on Altice ($ATUS) of a failed head & shoulders breakout. Price pulled back from the breakout to retest the former downtrend and the 50d on October 23. From there we saw rotation to the upside and nice swing trade opportunity for a pre-earnings run to sell ahead of their announcement.
Break Outs is a classic Turbo Breaks scan that has been tuned to my preference. It alerts stocks that are making new highs (or new lows – alerts in red) on the session, and doing so while breaking out of an inside market. Additionally, the stocks that are alerted are seeing 10 times the average volume during the last 1 minute candle, often resulting in upside follow through of a break out. While this scan is also a favorite for intraday setups and day trades, it can be a valuable scan for finding swing setups on the daily and weekly charts as well. Below is an example shown of Qualcomm ($QCOM). The Trade Ideas scan alerted the breakout of an ascending triangle structure shown on the weekly. This scan also displays the next notable resistance level, which at the time was at 84.80. Price obviously had no trouble at that level, and saw upside continuation into the next week to push to new highs.
Solid Green Continuity
Solid Green Continuity is a scan that alerts stocks that are seeing green candles printing on the 1 hour, Daily, Weekly, Monthly and Yearly candles. Essentially, stocks need to be above their 50% range (green candle) for the last 60 minutes, for today’s session, over the last 5 sessions, over the last 20 sessions, and for the year. These are stocks that are likely to continue further upside while continuity remains.
Solid Red Continuity
Solid Red Continuity is a scan that alerts stocks that are seeing red candles printing on the 1 hour, Daily, Weekly, Monthly and Yearly candles. Essentially, stocks need to be below their 50% range (red candle) for the last 60 minutes, for today’s session, over the last 5 sessions, over the last 20 sessions, and for the year. These are stocks that are likely to continue further downside while continuity remains.
Full Swing Layout
Just as with the other cloud codes above, you can upload a cloud code for this entire layout with each of the above scans incorporated.
A good Trade Ideas scanner can be a valuable tool for locating ideal setups for your style or strategy. As mentioned before, any of the above scan windows can be modified to fit criteria to better for your strategy. Additional resources, like the Trade Ideas chatroom and the Trade Ideas Youtube Channel are available to everyone for free, but can also be viable ways of discovering new scans a strategies shared by other Trade Ideas users.
The Trade Ideas swing scans and layout that I’ve listed above can be a great resource for swing traders, and an easy way to cut through the “noise” to find some nice swing setups. Be sure to look through the higher time frames, like the monthly and weekly, to discover notable breakouts and confirmations following alerts on the scans. I sincerely hope you find them useful. If you do, share this information with others within your trading circle with one of the share buttons below. Enjoy!