Direction Spotter Swing Trading Screener

Introduction:

If you are a swing trader seeking a comprehensive stock screener to enhance your trading strategy, Look no further than this screener, a powerful tool that allows you to take control of your swing trade scans and uncover potential trading opportunities. In this post, we'll explore a popular swing trading strategy called the Direction Spotter, and we'll show you how to use the screener to identify stocks that align with this strategy. Get ready to revolutionize your swing trading game!

Introduction

The Direction Spotter strategy is a renowned swing trading approach that focuses on identifying stocks that have experienced a strong trend and are now undergoing a pullback, crossing over a 20-day moving average. By employing this strategy, you can pinpoint stocks with the potential for a trend continuation after a temporary retracement. Let's dive into the key parameters of this powerful swing trading screener and understand their significance.

Average Directional Index (Daily, 14) is greater than or equal to VALUE 30

The first rule of the Direction Spotter swing trading strategy involves identifying stocks with a strong trend. The Average Directional Index (ADX) helps us gauge the strength of a trend. By setting the threshold to a value of 30 or higher, we filter out stocks that exhibit significant price movement and trending behavior.

Average Directional Index (Daily, 14) is greater than or equal to Average Directional Index (Daily, 28)

To further refine our search, we introduce a comparative analysis between two Average Directional Index values. This rule ensures that the trend strength is not only significant in the past two weeks but also stronger than the preceding two weeks. This comparison adds an extra layer of confirmation to our swing trading screener.

DAY HIGH is greater than or equal to ANALYTIC Simple Moving Average (Daily, 20)

Next, we focus on identifying stocks that have experienced a pullback in their trend. The comparison of the day's high price with the 20-day Simple Moving Average (SMA) indicates that the stock has retraced and is potentially ready for a trend continuation. This parameter allows us to capture stocks that are currently trading above their 20-day SMA, suggesting a bullish bias.

DAY LOW is less than or equal to ANALYTIC Simple Moving Average (Daily, 20)

Completing our swing trading screener, we analyze the day's low price in relation to the 20-day SMA. When the day's low is at or below the 20-day SMA, it signals a potential retracement in a downtrend and offers an opportunity for swing traders to consider short positions. This parameter ensures that we identify stocks that have pulled back from their downtrends.

In a nutshell, The Direction Spotter swing trading screener combines four essential parameters to help you identify potential swing trading opportunities. By filtering for stocks that exhibit strong trends, confirmatory ADX values, and pullbacks near the 20-day SMA, you can identify stocks that align with the Direction Spotter strategy. This approach allows you to enter trades at optimal points, increasing the probability of capturing trend continuations and maximizing your swing trading profits.

Disclaimer: It's important to note that swing trading involves risks, and past performance is not indicative of future results. The Direction Spotter swing trading strategy discussed in this post is intended for educational purposes only. Always conduct thorough research, perform technical and fundamental analysis, and consider your risk tolerance before executing any trades. The Pro Scanner provides powerful tools, but it's essential to exercise caution and make informed decisions when using any trading strategies.