Swing trading is a powerful strategy that enables you to take advantage of technical movements, stock news, and other short- to medium-term price action. However, swing trading successfully requires careful market analysis, and it can be time-intensive.
Swing trading services make it easier to trade profitably and can save you a lot of time. These services help you identify prospective trades and offer essential information about when to buy and sell. In this guide, we’ll review the 4 best swing trading services in 2021.
Types of Swing Trading Services
Before we dive into our top swing trading services, it’s important to note that not all services are designed for the same traders or the same goals. For example, some swing trading services might be better for beginners, while others offer advanced tools and insights for experienced traders.
In addition, we can break swing trading services down into 3 different categories:
Charting services offer tools for identifying technical price movements. There’s a huge range of options within this category. For example, some charting tools use automated analysis to suggest entry and exit points. Others put you in control by giving you the option to create custom indicators or backtest a trading strategy.
In addition, charting services often include additional tools like alerts and market news feeds. Some can integrate with your broker to enable you to place trades as quickly as possible.
Scanning services offer stock scanners and related tools to help you find swing trading opportunities as they appear. Swing trading scanners, in particular, need to offer a mix of fundamental and technical parameters to help you filter stocks, rather than relying on either fundamental or technical metrics alone.
Scanning services for swing traders are often used in conjunction with charting services so that you can further investigate potential trades.
Stock Picking Services
Stock picking services take a lot of the work out of hunting for and analyzing swing trading opportunities. These services rely on analysts to find opportunities, bring them to your attention, and even highlight entry and exit points.
Some stock picking services require you to do almost no research on your own, which can be a good thing for beginners or time-strapped traders. Others point you in the direction of opportunities, but still leave you to decide which setups to trade and which to pass on.
Best Charting Service: TradingView
TradingView is our top pick for charting swing trading opportunities because it’s both comprehensive and flexible. With TradingView, you get access to streamlined technical charts with 12 different bar styles and plenty of advanced drawing tools. Even better, the software includes more than 100 built-in technical indicators, and you can apply indicators on indicators. You’re also free to create your own indicators using the built-in code editor.
What really makes TradingView stand out for swing traders, though, is how easy it makes analyzing opportunities and building a trading strategy. The platform can automatically annotate candlestick patterns, and it offers a bar replay feature so you can see how technical patterns developed into sustained price action in the past. You can also backtest custom trading strategies on any individual stock.
You can use TradingView for free, but you’ll need to upgrade to a paid plan if you want to apply more than 3 indicators at a time or set up alerts. Paid plans start at $14.95 per month, and TradingView’s top-tier plan costs $59.95 per month.
Best Scanning Service: FinViz
FinViz is the best scanning service for swing traders, thanks to the huge number of filters this platform provides. The FinViz stock scanner offers nearly 60 technical and fundamental parameters, many of which are ideal for finding swing trading setups. For example, you can filter stocks based on how close a moving average is to the stock’s 52-week high or based on whether a chart pattern like a triangle, channel, or double top has formed.
FinViz also makes it easy to sort through your scanner results to find trading opportunities. You can save scanner results to a portfolio and then quickly build a heatmap showing performance, analyst ratings, or metrics like P/E ratio. FinViz can also auto-refresh your scanner results, making it easier to spot new setups as they appear throughout the trading day.
FinViz’s scanner is free to use, but price data is delayed by 3 minutes. For real-time data, you’ll need to upgrade to FinViz Elite, which costs $39.50 per month.
Best Stock Picking Service for Beginner Swing Traders: The Motley Fool
The Motley Fool offers a number of different stock picking services, but the company’s most well-known service is Stock Advisor. Since it was founded in 2002, Stock Advisor has posted an astounding 623% return.
Stock Advisor offers traders 2 stock picks per month and explains why The Motley Fool’s analysts think the companies are set up for success. Picks aren’t dependent on technical patterns or short-term price action, so the service’s guidance is extremely easy to follow. Stock Advisor focuses exclusively on explosive growth stocks, so its portfolio tends to be tech-heavy.
Stock Advisor isn’t specifically designed for swing trading – picks are intended to be held for 3-5 years. However, it can be an excellent resource for swing traders in part because of how popular the service is. Stock Advisor picks typically see a price jump of several percent on the day they’re recommended, and for many stocks this is part of a broader bullish momentum. So, many Stock Advisor picks are well-suited for swing trading.
Stock Advisor costs $99 per year for your first year and $199 per year after that.
Best Stock Picking Service for Advanced Swing Traders: IBD Marketsmith
Marketsmith from Investor’s Business Daily is an advanced swing trading service that helps you analyze technical setups and brings potential trading opportunities to your attention. At the heart of this service is its charts, which are automatically annotated to show support and resistance levels, cup-and-handle patterns, wedges, and other potentially important technical patterns. Alongside the charts, you’ll find fundamental research and checklists showing whether a stock passes key tests for popular investing strategies.
On top of that, Marketsmith publishes a list of 250 high-potential stocks every week. This list is put together by IBD analysts and makes it easy to narrow your search for trade ideas. The service also offers lists of stocks that are breaking out during the current trading day, stocks near a pivot point, and stocks gapping up after earnings – all prime targets for swing traders.
You can try out Marketsmith for 3 weeks for $19.95. After that, the service costs $149.95 per month.
Conclusion: Swing Trading Services
Swing trading is more consistently and more profitable when you have the right tools to help. Whether you’re looking for a charting platform or screener to do your own research or a stock picking service to help you find trading opportunities, these 4 services offer high-quality tools and pack a ton of value.