{"id":4931,"date":"2023-11-30T23:43:00","date_gmt":"2023-11-30T23:43:00","guid":{"rendered":"https:\/\/thewealthcircle.com\/?p=4931"},"modified":"2023-12-02T15:55:44","modified_gmt":"2023-12-02T15:55:44","slug":"best-swing-trade-stocks","status":"publish","type":"post","link":"https:\/\/kiiky.com\/wealth\/best-swing-trade-stocks\/","title":{"rendered":"10 Best Swing Trade Stocks | Best List","gt_translate_keys":[{"key":"rendered","format":"text"}]},"content":{"rendered":"\n
Swing trading is one of the most popular forms of active trading<\/a><\/strong>, where stock traders look for short and medium-term opportunities using various forms of technical analysis. <\/p>\n\n\n\n If you’re interested in swing trading, you need to be familiar with the technical analysis and the best swing trade stocks.<\/p>\n\n\n\n In this post put together by the Wealth Circle<\/a><\/strong>, our focus will be on listing the best swing trade stocks.<\/p>\n\n\n\n Here’s what to expect in this article.<\/p>\n\n\n\n\n\n Swing trading is a trading style that focuses on profiting off changing trends in price action over relatively short timeframes. <\/p>\n\n\n\n According to Investopedia<\/a><\/strong>, swing trading is a style of trading that attempts to capture short- to medium-term gains in a stock (or any financial instrument) over a period of a few days to several weeks.<\/p>\n\n\n\n Swing traders will try to entice upswings and downswings in stock prices. Positions are typically held for one to six days, although some may last as long as a few weeks if the trade remains profitable. <\/p>\n\n\n\n Swing traders use technical analysis to identify patterns, trend direction, and potential short-term changes in trends. <\/p>\n\n\n\n There are key features to look out for when searching for swing trading stocks.<\/p>\n\n\n\n For instance, paying attention to debt levels and price-earnings ratios will definitely be of no value because swing trading is more of short tem than long term.<\/p>\n\n\n\n Here’s a list of what to look out for if you want to get into swing trading:<\/p>\n\n\n\n Most swing trades commence by discovering a catalyst that could trigger a powerful move in a stock. This could be a clinical trial in a pharmaceutical company or even the removal of an executive or CEO. <\/p>\n\n\n\n In Swing trading, you need to consider the volume because big moves in short time frames are impossible without significant volume in the stock. <\/p>\n\n\n\n Unarguably, lightly-traded stocks can be coerced into big moves without much volume. But in the majority of your swing trades, look for stocks with more volume than usual — it matters most.<\/p>\n\n\n\n Great volume begets great volatility. Volatile stocks are good swing trading stocks because swing traders profit from large, short-term moves. A stock trading<\/a><\/strong> in a tight weekly range is likely not to produce a ton of opportunities for profit. But if 5% moves are occurring daily, you\u2019ll find a plethora of chances for swing trades.<\/p>\n\n\n\n Before you decide to venture into swing trading, there are five strategies you should be familiar with. These strategies are to be applied to the stocks you are interested in to look for possible trade entry points.<\/p>\n\n\n\n You can also use tools such as CMC Markets’ pattern recognition scanner to help you recognize stocks that are showing potential technical trading signals. <\/p>\n\n\n\n Here are the swing trading strategies for stocks<\/p>\n\n\n\n The Fibonacci retracement pattern can be used to help traders spot support and resistance levels, and therefore possible reversal levels on stock charts. <\/p>\n\n\n\n Stocks often tend to retrace a certain percentage within a trend before reversing again, and plotting horizontal lines at the classic Fibonacci ratios of 23.6%, 38.2% and 61.8% on a stock chart helps to show potential reversal levels. Traders often look at the 50% level as well, even though it does not fit the Fibonacci pattern, because stocks tend to reverse after retracing half of the previous move. <\/p>\n\n\n\n A stock swing trader could enter a short-term sell position if the price in a downtrend retraces to and bounces off the 61.8% retracement level (acting as a resistance level), with the aim to exit the sell position for a profit when the price drops down to and bounces off the 23.6% Fibonacci line (acting as a support level).<\/p>\n\n\n\nWhat Is Swing Trading?<\/strong><\/span><\/h2>\n\n\n\n
What Are The Features To Look For In Swing Trading?<\/strong><\/span><\/h2>\n\n\n\n
Catalyst<\/strong><\/span><\/h3>\n\n\n\n
Volume<\/strong><\/span><\/h3>\n\n\n\n
Volatility<\/strong><\/span><\/h3>\n\n\n\n
Swing Trading Strategies For Stocks<\/strong><\/span><\/h2>\n\n\n\n
#1 Fibonacci retracement<\/span><\/h3>\n\n\n\n