SWING TRADING MASTERCLASS: Trade With Champion Stocks

Uncover market myths like buy low sell high; learn to buy high and sell higher, focus on growth and earnings, and evaluate high versus low p/e stocks.

Explore the canslim framework for selecting top stocks by current earnings, annual earnings growth, roe, new product leadership, rising volume, strong relative strength, institutional sponsorship, and favorable market direction.

Canslim's current earning criterion requires year-on-year quarterly earnings to rise by at least 25%, measured by pat or eps, implying rising profits and stronger stock performance.

Explore the N of CANSLIM, noting how new product, new services, new leadership, and new industry change or a new price hike influence stock potential, with N treated as subjective.

Analyze how supply and demand move stock prices as big investors push higher with rising volume. Note that heavy volume signals institutional buying and can slim bias.

Identify leading stocks versus laggards relative to the index using price action and relative strength, and use MarketSmith filters to select top leaders for swing trading.

Explore how promoter and institutional holdings signal confidence, while rising retail ownership indicates risk, with examples from IT and finance stocks showing mutual funds and foreign investors driving uptrends.

Identify market direction to guide stock selection; when the market is bullish, the index and stocks move together, with stronger buying candles and lower selling volume.

Master technical analysis through Dow theory, studying price history and patterns like marubozu candles to forecast future moves by price and volume signals.

Log in to TradingView, copy paste the EMA 50/200 pine script and the volume indicator, save them, and apply both indicators to the chart for enhanced analysis.

Identify bullish support candles, which close strongly above 60–70% of the candle and have above-average volume. These candles act as support and predict a potential upside bounce.

Identify bullish and bearish support candles with a strong close, 60–70% of the candle size, and above-average volume, while ignoring other patterns for uptrends and downtrends in swing trading.

Identify bullish continuation moves as candles close above the previous high after 3–4 bullish candles, signaling a strong uptrend; note reversals when candles close below the previous low.

Identify a bearish resistance candle in a downtrend that closes below 60% of the body with above-average volume, acting as resistance during retracement and signaling a continuation downward.

Identify bullish support candles by a close above 60–70% of the candle body and above average volume, with examples showing uptrends continuing or pausing when criteria fail.

Identify support and resistance as demand and supply zones, observe price reactions such as v-turns and u-turns, and track breakouts that convert resistance into support in an uptrend.

Identify stage one as the accumulation phase where institutions buy during a base pattern, with rising buying volume, sustained support and resistance, earnings improvements, and a breakout to stage two.

Explore the stage 2 growth phase where breakout from accumulation occurs as demand exceeds supply, big players buy, retail participation rises, and prices stay above the 200 moving average.

Identify the distribution phase that follows the markup phase, marked by high volatility as growth stalls, institutions withdraw, and retailers may keep buying and selling.

Recognize that price action can diverge from earnings due to institutions' forecasts; when prices fall despite good earnings, trust price movement as the signal and note the marked down phase.

Identify the growth phase (markup) to time swing entries. Confirm S2 by noting higher highs and higher lows above the 200 moving average, with the 50 moving average above and rising.

Identify that in a downtrend, lows break and highs persist, whereas in an uptrend highs break and lows persist; use moving averages 50 and 200 for analysis and selling opportunities.

Learn volatility contraction (VCP) to spot lack of supply and potential breakouts, analyzing price contraction with volume context, pivots, and stage analysis for swing trading.

Explore volatility contraction in stage two uptrends on the daily chart, showing shrinking price with low volume and persistent demand, signaling a favorable entry setup.

Observe repeated volatility contractions (VCP) across moves, confirmed by lower volume, price compression toward stage two with 50/200 moving averages, and breakouts as entry points with disciplined stop losses.