Published: May 1, 2023
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One of the best Price Action Traders for the past 5 years: @Swapnja_Sharmaa. Back in 2020, she shared her "Most Profitable Swing Trading Strategy." and the strategy is a must-know for swing traders who want an RR of 1:3. Here's the breakdown: Collaborated with @niki_poojary

Image in tweet by Aditya Todmal

1) Step 1: Scan the stocks between strong stocks and weak stocks. There are some conditions for it which are in the picture below. Strong Stocks:

Image in tweet by Aditya Todmal

Weak Stocks: The conditions below in the picture are what are required to scan weak stocks so that we can find swing trading opportunities in them.

Image in tweet by Aditya Todmal

Timeframe: Should be used only in a 1-hour timeframe. Also, the holding duration should be 2-4 days.

2) Step 2: Chartink So after getting all these conditions, we are going to select the same conditions on @ChartinkConnect to filter our stocks. This website filters the conditions for free. Next, we will create a scan.

3) Step 3: Use the scans below to filter out the bullish and bearish stocks Posting all four scanners' links below. Link of the Cash segment scanner: (Bullish) Scanner 1: https://chartink.com/screener/...

Image in tweet by Aditya Todmal

Scanner 2: Link for Futures segment scanner (Bullish) https://chartink.com/screener/...

Image in tweet by Aditya Todmal

Scanner 3: Link for cash segment scanner (Bearish) https://chartink.com/screener/...

Image in tweet by Aditya Todmal

Scanner 4: Link for Futures segment scanner (Bearish) https://chartink.com/screener/...

Image in tweet by Aditya Todmal

4) Step 4: Entry Point The entry is going to be above the high of the two bullish candles for the buying setup. It's going to be below the lows of the two bearish candles for the selling setup.

Image in tweet by Aditya Todmal
Image in tweet by Aditya Todmal

5) Where to keep a stop loss? If you get a bearish trade, i.e. two bearish candles and the second one closing below the low of the first one. Your SL is going to be the high of the previous candle. Vice versa for bullish, SL will be high of the previous candle.

If the stock is really close to the 200 EMA line, you can place SL above/below it as well. We don't want our SL to get hit so we will try to place a SL such that it does not hit. Let us see some examples below.

Example 1: ITC Has given a 1:5 R:R Trade.

Image in tweet by Aditya Todmal

Example 2: Maruti Suzuki

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Example 3: Apollo Hospital

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Patience: Stocks will give you 6-7% moves provided you can hold them with conviction. But constant checking of stocks shouldn't happen and you should have the patience to hold them. Don't get deterred by Intraday moves.

Be alert: Avoid setups that trigger but the stock is very far away from its 50 EMA. Even if your setup triggers avoid such trades. Why? Because a pullback possibility is very high in such stocks.

Tips: Don't check intraday these stocks, you'll always feel like cutting the positions. Since it's a swing trade, either wait for your R:R and get out at 1:2 or 1:3 or give a Stop loss. Avoid big candles which will make the SL big.

Here's a link to the video from @Swapnja_Sharmaa Ma'am's Youtube Channel. Make sure you follow her channel and comment below this thread if you have any questions for her regarding this strategy. https://www.youtube.com/watch?...

and that's it! If you enjoyed this thread: 1. Follow us @Adityatodmal & @niki_poojary for more threads on Price action, Option Selling & Trading growth. We've got you covered. 2. RT the first Tweet to share it with your audience. I appreciate it!

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