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Swing Setup Stock Scans
While just about all the scans / signals in the system are swing trading setups, the ones listed here are specifically either from one of the "Hit & Run" trading books or from CANSLIM / Investor's Business Daily.
Name Description
1,2,3 Pullback Bullish Rules (via 'Hit & Run Trading'):
  • ADX must be more than 30 and the +DI more than the -DI.
  • Three consecutive lower lows or any combination of 2 lower lows and an inside day.
  • For the buy: tomorrow only, buy 10 cents above today's high.
  • Initial stop: near today's low.
  • Thereafter, use a trailing stop.
    1. 1,2,3 Retracement Bearish Rules (via 'Hit & Run Trading'):
    2. ADX must be more than 30 and the -DI more than the +DI.
    3. Three consecutive higher highs or any combination of 2 higher highs and an inside day.
    4. Tomorrow only, sell short 10 cents below today's low.
    5. Initial stop: near today's high.
    6. Thereafter, use a trailing stop.
      1. 180 Bearish Setup Rules (via 'Hit & Run Trading'):
      2. Yesterday's close must be in the top 25% of the daily range.
      3. Today's close must be in the bottom 25% of the daily range.
      4. Today, stock must close below both its 10-day and 50-day moving averages.
      5. Sell short: Tomorrow, sell short 10 cents under today's low.
      6. Initial stop: 1 point above entry price.
        1. 180 Bullish Setup Rules (via 'Hit & Run Trading'):
        2. Yesterday's close must be in the bottom 25% of the daily range.
        3. Today's close must be in the top 25% of the daily range.
        4. Today, stock must close above both its 10-day and 50-day moving averages.
        5. For the buy: Tomorrow, buy 10 cents above today's high.
        6. Initial stop: 1 point under entry price.
          1. Boomer Buy Setup Rules (via 'Hit & Run Trading'):
          2. ADX must be more than 30 and the +DI more than the -DI.
          3. Stock must make two consecutive inside days.
          4. On day 4 (the day after the second inside day) buy 10 cents above the high of the second inside day bar.
          5. Place your initial protective stop 10 cents under the low of the second inside day.
            1. Boomer Sell Setup Rules (via 'Hit & Run Trading'):
            2. ADX must be more than 30 and the -DI more than the +DI.
            3. Stock must make two consecutive inside days.
            4. On day 4 (the day after the second inside day) sell short 10 cents under the low of the second inside day bar.
            5. Place your initial protective stop 10 cents above the high of the second inside day.
              1. Cup with Handle

                This finds which have formed Cup-with-Handle patterns which are at least 8 weeks long and at most 9 months long.  The beginning, or left side, of cup has to start after a rally of at least 30%.

                Then a 20% to 30% correction from the old high (left side cup edge) must occurs.  The stock then builds a rounded base which slowly climbs back toward the old high  The right edge of the cup must be at most 15% below the left edge (the old high).  Then a slight pullback occurs which forms the handle.

                The handle can be a minimum of 1 week long & max of 6 weeks in duration. It must aslo form within the top half of the cup and be within 15% of the left side top of the cup.

                The official / traditional buy point is when & if the stock rises above the RIGHT edge of the cup on higher than average volume.

                Expansion Breakout Rules (via 'Hit & Run Trading'):
              2. Day 1 (today) - Stock must make a two-month calendar High.
              3. Day 1's range must be the largest of the previous 9 trading days.
              4. For the buy: tomorrow only, buy 10 cents above today's high.
              5. Initial maximum risk (stop loss) 1 point under Day 1's close.
              6. Thereafter, use a trailing stop.
                1. Expansion Pivot Buy Setup Rules (via 'Hit & Run Trading'):
                2. Today's trading range must be greater than the daily range of the past nine trading sessions.
                3. Either yesterday or today, the stock is trading at or below the 50-day moving average and explodes higher.
                4. Tomorrow buy 10 cents above the explosion-day high.
                5. Our initial protective stop is 1 point below the explosion day's close.
                  1. Expansion Pivot Sell Setup Rules (via 'Hit & Run Trading'):
                  2. Today's trading range must be greater than the daily range of the past nine trading sessions.
                  3. Either yesterday or today, the stock is trading at or above the 50-day moving average and explodes lower.
                  4. Tomorrow sell short 10 cents below the explosion-day low.
                  5. Our initial protective stop is 1 point above the explosion day's close.
                    1. Gilligan's Island Buy Setup Rules (via 'Hit & Run Trading'):
                    2. A stock must gap open to a new two-month low. The bigger the gap the better.
                    3. The stock must close at or in the top 50 percent of its daily range and equal to or above the opening.
                    4. For the buy: The next day only, buy 10 cents above today's high.
                    5. Risk 1 point.
                    6. Carry the position overnight if it closes strongly.
                      1. Gilligan's Island Sell Setup Rules (via 'Hit & Run Trading'):
                      2. A stock must gap open to a new two-month high. The bigger the gap the better.
                      3. The stock must close at or in the bottom 50 percent of its daily range and equal to or below the opening.
                      4. For the short sell: The next day only, sell short 10 cents under today's low.
                      5. Risk 1 point.
                      6. Carry the position overnight if it closes weakly.
                        1. Hot IPO Pullback Rules (via 'Hit & Run Trading II'):
                        2. Stock must trade at least 15% above its offering price within its first five days of trading.
                        3. Then wait for a two - to - four day pullback. This could be any combination of lower lows, lower closes, inside days, etc.
                        4. After the second, third or fourth pullback day buy 5 cents above the previous day's high.
                        5. Place your initial protective stop at the previous day's low.
                        6. Hold the position from one to five days using trailing stops.
                          1. Jack-in-the-Box Bearish Rules (via 'Hit & Run Trading II'):
                          2. Day 1 - Stock must make an expansion breakdown (XBD).
                          3. Day 2 - Stock must form an inside day.
                          4. Sell short the day after the inside day, 5 cents below the XBD day's low and risk one point.
                          5. If the stock closes strongly (weakly) in the bottom of the day's range, hold at least half of your position overnight, as it's likely to follow through the next day.
                            1. Jack-in-the-Box Bullish Rules (via 'Hit & Run Trading II'):
                            2. Day 1 - Stock must make an expansion breakout (XBO).
                            3. Day 2 - Stock must form an inside day.
                            4. Buy the day after the inside day, 5 cents above the XBO day's high and risk one point.
                            5. If the stock closes strongly in the top of the day's range, hold at least half of your position overnight, as it's likely to follow through the next day.
                              1. Non-ADX 1,2,3,4 Bearish Rules (via 'Hit & Run Trading II'):
                              2. Stock must be below its 50-day moving average.
                              3. Three consecutive higher highs or any combination of 2 higher highs and an inside day.
                              4. Tomorrow only, sell short 10 cents below today's low.
                              5. Initial stop: near today's high.
                              6. Thereafter, use a trailing stop.
                                1. Non-ADX 1,2,3,4 Bullish Rules (via 'Hit & Run Trading II'):
                                2. Stock must be above its 50-day moving average.
                                3. Three consecutive lower lows or any combination of 2 lower lows and an inside day.
                                4. For the buy: tomorrow only, buy 10 cents above today's high.
                                5. Initial stop: near today's low.
                                6. Thereafter, use a trailing stop.
                                  1. Pocket Pivot As defined by Dr. Chris Kacher: A pocket pivot is when a stock closes up and the volume for that day is higher than any volume for a down day in the prior 10 days.
                                    Reversal New Highs Setup Rules (via 'Hit & Run Trading II'):
                                  2. As always, the stock should be priced at more than $30 per share. The higher the price, the better
                                  3. Today the stock must do all of the following:
                                    1. It must trade under yesterday's low.
                                    2. It must then trade above yesterday's high (in other words, form an outside day).
                                    3. Today's range must be the largest range of the past five days, and today the stock must make a new 60-day high.
                                  4. For the buy: tomorrow only, buy 5 cents above today's high and risk 1 point.
                                  5. Use a trailing stop and stay in the position until you are stopped out. This can be as short as a few hours to as long as a few days.
                                    1. Reversal New Lows Setup Rules (via 'Hit & Run Trading II'):
                                    2. As always, the stock should be priced at more than $30 per share. The higher the price, the better
                                    3. Today the stock must do all of the following:
                                      1. It must trade under yesterday's low.
                                      2. It must then trade above yesterday's high (in other words, form an outside day).
                                      3. Today's range must be the largest range of the past five days, and today the stock must make a new 60-day low.
                                    4. For the short sale: tomorrow only, sell short 5 cents below today's low and risk 1 point.
                                    5. Use a trailing stop and stay in the position until you are stopped out. This can be as short as a few hours to as long as a few days.
                                      1. Slingshot Bearish Rules (via 'Hit & Run Trading'):
                                      2. Day 1: stock makes a 2-month low.
                                      3. Day 2's high is at least 10 cents higher than Day 1's high.
                                      4. Day 2 or 3: Sell short sell if the stock trades 10 cents below Day 1's low.
                                      5. Initial stop: 2 points above entry price.
                                        1. Slingshot Bullish Rules (via 'Hit & Run Trading'):
                                        2. Yesterday, stock makes a 2-month high
                                        3. Today's low is at least 10 cents lower than yesterday's low.
                                        4. For the buy: either today or tomorrow when the stock trades 10 cents above yesterday's high.
                                        5. Initial stop: 2 points under entry price.
                                          1. Three Weeks Tight Stocks which formed a Three Weeks Tight pattern