As always, the starting point is the market. It is critically important that we have a good sense for market direction and that our confidence in that forecast is high. The daily market comments will help you gauge market conditions and our bias will be supported by the SPY trade signals. Swing traders should wait for H1, H2 and D1 trade signals to agree before swing trading.
During the day, swing traders run the various searches to find stocks with heavy volume, technical breakouts and relative strength. PopBull and Pop+Bull are two of our favorite searches because they are based on compression breakouts. Custom searches should use H1, H2 and D1 variables and we suggest that trades signals across all 3 of those time frames agree. The search variables in Custom Search are explained in the manual. The more checkboxes you mark, the higher your odds of success. As you flip charts, look for long-term trendlines on a daily chart and place GTC alert lines at key price levels. This is very important! When those critical price points are breached a nice swing trading opportunity will present itself. Traders also place alert lines above/below the current price after entering the trade so that they know if the stock is moving in the right direction or if a stop is required.
Quick tips for first-time Option Stalker Pro users
1. Read the pre-open market comments in the chat room or pop-up in Option Stalker Pro.
2. Once you have your market bearings, click Market Signals at the top. You want the 3 longest time frames to be in agreement (H1-D1).
3. Click Scanner at the top of Pro.
4. Find Swing and click on the box with the green or red arrow that matches the longer-term SPY signals.
5. The first search will be Royal Flush. These stocks have confirming trade signals across all time frames except M5 and that is a sign of strong momentum.
6. Click on the symbol and view the longer-term chart and find the buy arrow. You want to see strong momentum and consecutive stacked candles with little to no overlap. Stocks that are breaking through D1 major moving averages or trend lines on heavy volume will be the best prospects.