What if I told you that just one simple candlestick chart pattern could transform your swing trading success? Imagine spotting a setup like this one, getting in early just as a pattern is forming, riding the wave, and then cashing out for massive gains once a stock actually breaks out. But here's the catch. Most traders miss these golden opportunities because they don't know where to find these chart patterns to trade, when to enter, or when to exit. And that's exactly what we're solving today. The market has been tough lately with the S&P 500 entering correction territory. It has definitely been challenging for day traders and swing traders. While breakouts like these are no longer working, don't worry. If you're selective and know where to look, there's still opportunities in the market. In this video, I'm sharing the three most powerful chart patterns for swing trading. Exactly how to find them in real time and scan for these stocks, when to enter, and how to maximize your profits while minimizing risk. If you're serious about improving your swing trading game, then stick around till the very end. I'll also share my top scanner settings and criteria to help you find these setups and it wouldn't cost you a scent. If you're ready to level up your swing trading game, then smash the like button and let's dive in. Okay, let's start with a swing trading chart patterns now, shall we? This is a highly debated topic, at least in day trading. You guys know me. I'm often quite skeptical about all these charts patterns you see on the internet that day traders memorize when they are used in intraday in day trading. But like I mentioned before in my various swing trading video lessons when it comes to swing trading, I actually have seen a lot of examples of these candlestick charts patterns working out on the daily chart for the large cap stocks and again on the higher time frames. But again, I'm not saying they're going to work 100% of the time because nothing in trading is ever guaranteed. But I have seen these daily charts patterns for swing trading repeat and work out again and again in the past. Since you are swing trading and holding on to these positions for a longer period of time, the charts are a bit more forgiving and you have more time to let a trade work out. In my previous master class on swing trading, I went over the three basic swing trading chart patterns. If you haven't seen that video, make sure to check it out after this one. But here's a quick review. The three fundamental chart patterns you need to know for swing trading are the breakout chart pattern, the breakdown pattern, and consolidation chart pattern. But okay, now you must be wondering, Shay, then why are you sharing even more chart patterns for us to learn today for swing trading? Okay, here's the thing. There is no strategy and no chart patterns that are guaranteed to work in all the market conditions. If you found the one though, then call me. Unfortunately, gap ups hold and multi-day breakouts have been really scarce. I have barely found any good breakout swing trades since the last two months, and this is to be expected. That's why I've turned to scanning for chart patterns that work best in a bare market or just a downtrending market in general. Let me share that with you right now. Pattern number one, the wedge breakout. So you can see on this example over here, AU, this is a gold stock. You can see the breakout here. The stock had gapped up over the 3352's resistance here. But before there you see like a downtrend that's been retested once, twice, three times. That downtrend over here once the stock breaks out through that little wedge here. You can see the wedge squeezed squeeze squeeze tighter and the stock finally reclaims over 8 EMA and breaks out. Yes, it is still technically a form of breakout chart, but you want to make sure that there's at least a retest of one to three weeks of downtrend like the one over here on AU. Again, a breakout is when a stock breaks through a resistance, which you can see here around the 3350s. But for a wedge breakout, it needs to break the downtrend and break out above that resistance. There's many names for this chart pattern number one. Many people call this the triangle breakout, the rising wedge, or just a really simple downtrend break. Another really clear example here is ERJ. This is a energy stock. I believe you can see over here on the daily chart we have the 200 SMA, the 8 EMA again. These are the two indicators I use for swing trading on my daily chart. So you can see another wedge pattern forming here. A stock broke out and then you have this triangle pattern here over here as you can see. And once the stock retest that downtrend and breaks out then boom you break out above to new um I think this 52- week highs and same thing down here as well from maybe like last month. Uh you know like a a rising wedge over here triangle downtrend breakout. Once the stock reclaims over that ATMA, breaks out above that downtrend, then you have a nice breakout pattern. Again, the big difference between this wedge breakout pattern versus just a generic daily resistance breakout is that the wedge pattern often has like you can see on the on the charts here, a couple days of consolidation. A lot of these breakouts, if you have the time to consolidate, often times the success rate is drastically higher versus like a one-day resistance breakout like this one. Okay, let's talk about the entries, exits, and stops for this chart pattern number one, the wedge breakout. So, with these kind of breakout patterns, even though it's clear in hindsight, if the candle is too extended like this one, I actually don't like to get in on this kind of candles. I think that's a little bit of a chase and the riskreward is not that good. I prefer what we saw earlier with um ERJ. Let's see here what we saw earlier. I prefer these kind of consolidation candles. You can see the stock is riding along that 8 EMA once again forming that wedge pattern here. And once we have a candle one, candle one or two that have broken out above that daily downtrend, remember that downtrend has to have been retested for at least a couple of days to a week. And once we have an actual candle that broke out riding above the ATMA and above that daily downtrend and know above that downtrend wedge breakout, then this is the kind of candle I like to get in for a swing trade. I share a lot of these swing trading and day trading charts patterns and ideas in my free weekend watch list. If you're interested in checking that out, you can sign up for free down below. The next chart pattern we'll talk about is the long-term downtrend break chart pattern. Okay, it sounds really similar to the previous wedge pattern, but it's not. Hear me out. Let me show you a couple of examples here. The first one is INTC Intel. You can see this stock when I say a long-term downtrend, I mean this stock has been a downtrend since the beginning of uh 2024. You can see a stock over here trending below breaking down that 200 SMA and then it traded for a while, broke out, never retested or reclaimed that and then just a huge gap down and sell off again. So for these long-term downtrend breakout charts, you're looking for specifically the large cap stocks. This would not work on small cap below the 800 million market cap. Just don't because those are dilutive. Those are not the kind of swing trading candidates to look at. So, you're looking for these stocks that are trading below the 200 SMA and now it's starting to ride above the 8 EMA. You can see that even though Intel was still below the 200 SMA for a while, it's starting to reclaim over that. you have a retest of breakout above the 200 SMA pull back and now you're attempting that again. So this is a kind of wave or kind of reverse of a trend that I'm trying to catch with a specific chart pattern. It would be even better if there's a catalyst for that in which for Intel it did. So, I believe it's uh I forgot it's this day or that day, they announced that a new CEO who's very experienced in a semiconductor industry is taking over. And for a company like Intel that's been trending downtrend for years and really really beaten up, this is something transformative that can be really positive and transformative for the company. So that's why for the stock with that catalyst in mind, if it's able to break through that 200 SMA, reclaim that ATMA breakout and break through that 200 SMA, we can see a huge reversal of that long-term downtrend. And we want to see a breakout to the upside um from here, $24 potentially to that, you know, 28 and $30 or above. Let me show you another example here with U CRS Corsair. So you can see another example of a long-term downtrending stock. The stock has been below that 200 SMA since um late 2023. It just being a downtrend. And over here only at the beginning of uh 2025, then it's reclaiming that 8th EMA again. It needs to reclaim that and then trending up above towards that 200 SMA. you can see a nice 200 SMA breakout and the stock rallied up higher from um this is one around like $850 to $12. So this is a kind of long-term downtrend break chart that I'm looking for in terms of the executions, entries, exit, and stop out is very similar to the previous pattern number one, the wedge breakout. So again, you're still looking for that long-term downtrend to break around here to get in. Again, I want it to already be trending up towards that 200 SMA or even over that 200 SMA just like what we saw for Intel. So, for this example, I would get in right over that 200 SMA and ATMA cross also synchronize with a downtrend break right along that ATMA again for that breakout move. And then for this one, the stocks I will put below the 200 SMA. I actually like this particular charts pattern more than the first one, the wedge breakout charts pattern because the good thing with this particular charts pattern versus the previous is that a lot of times the breakout and consolidation is often slow and steady. Like you you're not seeing like a giant breakout candle like this one all the way here. So, it gives you a little bit of time to build your position and to ride that wave slow and steady up versus what you saw earlier with a wedge uh breakout pattern. A lot of times the first day of the breakout, that's it. The stock shoots up and uh you missed your entry. Okay, let's talk about the next chart pattern for swing trading. But before you do so, here's a quick word from our sponsor for this video. The last couple weeks have been tough for the market. All these talks about trade wars, recession, and potentially more inflation, these issues are not friendly to the market. And as a trader who's predominantly long biased, I'm not going to lie, there were many days when I were just sitting here on my hands and watching this bloodbath in the market. One solution that has been helping me in this market is the use of inverse ETFs. Inverse ETFs, also known as bare ETFs, are instruments that profits from a decline in the value of an underlying asset and typically must only be used in the short term or on a daily basis. For example, on a major sell-off day like this one, instead of short selling the S&P 500 or individual stocks and incur the use of margin and its potential risks, I can go long on SPXD instead. As you can see here on this chart, SPXD is the inverse exposure to the S&P 500 index fund. So when an index is breaking down below that 200 SMA and selling off drastically, the SPXD chart, on the other hand, is breaking out of that 200 SMA and forming a nice uptrend and breaking out on the daily, mirroring the inverse of the S&P 500. 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You can check out the full list of Beta Pro ETFs as well as the indices, commodities, and sectors they cover in a link down below. Now, back to the video. Pattern number three, the oversold chart pattern. This is a one in which I'm looking for potential reversals. I would say out of the three chart patterns that you're learning today, this one is a little bit harder to find, but the riskreward is really good when you do find them. Essentially, for this chart pattern number three, the reversal chart pattern or oversold charts pattern, I'm looking for stocks that have experienced short-term selling pressure that's really drastic and big drops below the 200 SMA for the last couple of weeks or a month. And I'm looking for signs that this stock is due for an eventual bounce. But the key here is that you must really understand the catalyst that caused the company's stock to sell off. so drastically below the 200 SMA and the catalyst must be something that the company or the stock can recover from and that is shortterm not permanent. Okay, let me explain further with some examples here. So you can see this stock KBA you can see that this stock was on a tear for the entire 2024. It went from like 33 all the way to $160. But recently in February, the stock had a huge sell-off from 130 all the way down, cracking that 200 SMA and below to 110 below 100 and now it's settling in at around $80. And another reason is that the stock the the earnings report from um for Q4 that was reported at the end of February just wasn't that impressive. So this is the kind of chart I like. Remember 200 SMA breakdown here. The stock has sold off drastically. You can see this from 112 all the way down to $80. It barely even bounced until recently. Now, what I'm looking for is when the stock was selling off, you can see it's selling off trending below the 8 EMA. I'm looking for the stock to reclaim over that 8 EMA once again, the momentum indicator I love using, and start consolidating. So you can see it's starting to break out here on Wednesday, March 19th, you know, reclaiming over that ATMA. And this is the signal I'm looking for. So with this, you know, once it starts reclaiming, where I want to get in is a reclaim of ATMA. And I will be risking below that. So, you know, if you're conservative, I would risk all the way at $75, but I understand not everyone's comfortable with that. If you want to use tighter risk, then I'll risk just below, you know, give it some room like maybe a dollar below the 8 EMA. And big picture wise, you're looking for a reversal, right? Because we talked about the sell off is so drastic here, you're looking for a technical bounce towards that 200 SMA. But with this one, you know, you definitely want to be cognizant of the recent resistance. So for this one, the first target I'll look at around $97, eventually around hundreds over here. Those are the daily resistance for Cava. So, another example here, ACN. You can see the stock really sold off drastically from 380 down to 340. Um, you had another gap down here with um earnings catalyst not as great all the way down to $300. Now, for this one, it's not ready yet. You can see the stock has not reclaimed or caught up to the ATMA just yet. But again like I often talk about for all the swing trades almost all of them a lot of times after you scan the stock it doesn't means it's actionable the day you find the potential. So for this chart setup I will save this ticker in my watch list and just look at it every single day near close and I'll see whether the stock is reclaiming that EMA and whether it's setting up for my entry. Remember you're not in the business of trying to like pick the bottoms and then like you know catch it folding knife. Who knows, this stock 305 can keep falling as well. Here are some more examples of this chart pattern, you can pause it on screen for a closer look of Adobe and Crowd Strike. And before we move on, if you're enjoying this comprehensive swing trading video lesson so far and you want to see more, please remember to hit the like button down below so more people who are interested in swing trading will see this video. and I really appreciate it. With the three swing trading chart patterns that you learned today, there are a lot of similarities. But remember, trading is very nuanced and so is pattern recognition and your entries, exits, and take profit. Not all the breakout patterns are created equal. In a bull market maybe, but in a tougher market environments that we've seen lately, this kind of breakout is very risky. While this kind of wedge consolidation and downtrend break has a much better riskreward and win rate, it's these nuances that can determine the success rate of these chart patterns for swing trading. Okay. Now, in the next section, we're going to cover how to find these profitable chart patterns to swing trade all for free. So, the first step is just to go to fimvis.com and go to the screener section over here. This screener, the free version, is perfect for scanning for swing trading charts. Since the market data is delayed by 15 minutes, it's not good for day trading. I wouldn't recommend using delayed data for day trading, but for swing trading, that's perfectly fine. I use this all the time on the weekends. So, let's talk about the criteria I'll use. And this is a very simple criteria. You can use the same settings for any scanner you use, whether it's a free version or paid. So, market cap, I always scan for stocks above two billion. You know, I do not like to swing trade small cap stocks. Price definitely over a dollar per share. And now you can see there's 96 pages of results. That's way too many. Again, we need to narrow this down. So, average volume, I'm looking for at least minimum 750,000 volume for day trading. that wouldn't be enough, but for swing trading, that's totally fine. So, I'm looking at over 750K. You can see that narrows down all the results drastically. Now, current volume, I'm looking for over a million on the day. And then the most important one is relative volume. Now, this is the one you can play with. I'm looking for relative volume of anywhere between 1.5 or I'll try two or sometimes when there's a lot going on, I'll try three. So you can see uh I'll try any of this range for now. Let's try over two. So remember relative volume just shows you the current volume of the stock compared to the average over the last 3 months. So if you hover over relative volume here, it's a good indicator to use for momentum. So you can see that this is still a lot of results. So you can play around and even do over three if you would like. So uh and once we're here, I like to you can see the tabs over here. this overview valuation. Um, the really useful ones I like to use when I'm screening for swing trading charts is the charts one. You can see if I click it, it'll show me like a quick preview of all the results of the charts. So, you can use a charts. You can see it gives you like a really cool snapshot of the daily chart on the stock and some of the basic indicators. Um, but the one I actually use 200 SMA. Um, but the one I like more is TA. essentially is technical analysis. If you click TDA, it'll also show you the RSI, some of the indicators on the side. It'll show you the daily SMA, you know, how much is like 10% off the uh below the daily SMA. It'll show you yearto date, some of the relative volume, you know, 52- week high range. So, this is the one I like to use the most when I'm screening for potential tickers. And this is how I found some of the tickers earlier for the three chart patterns that you learned today. So let's take a look at these chart patterns one by one and I'll tell you how I analyze them and whether they fit the three patterns we learned earlier. So ACN you already saw this is the oversold reversal pattern that we're looking at. You can see the indicators over here. Again the one that we actually only use is a 200 SMA here. ADM this one is in a longterm downtrend. So you know this is also don't show any signs of reversal. So I wouldn't pick this one. This one ADMA you can see this one is considered you know also like a wedge breakout here. So let's take a look on the bigger charts here. ADMA. So you can see on the charts over here this one actually have a long-term downtrend break here. You can see the triangle breakout downtrend break and the stock is reclaiming over that ATMA. So, this one would actually fit the pattern for pattern number one, the wedge breakout. Um, ADT, you know, I don't see anything there. It's riding the uptrend, but I don't really see any um really obvious long-term downtrend break. This one, I think this one, AESI, you know, oil stock here. This one will actually fit the oversold chart pattern. If you take a look at it over here, the RSI is also below 40. it's relatively low. RSI stands for relative strength index. It when the number is low, usually around 20 or 30, it shows you that the stock is generally speaking oversold. But again, like obviously you need to put it up on the actual charts here and take a look at it. So, AESI, you can see the stock is way below the 200 SMA. Um, looks like it is also earnings miss here. You can see the E sign here. Here you can see it's reclaiming over the orange line which is the 8 EMA. So this one is also worth taking a look at. You can see this one is what I would call a daily breakout chart that we learned from the previous um swing trading master class video. You can see a huge daily range resistance breakout. This line here around $79 and a stock is breaking above it. But in this market environment, this will not be the kind of chart pattern I will want to swing trade. ALK this one is an airline stock. So I would personally stay away from tech airlines um all these really sensitive to current market environment. So you can see there's actually a lot of potential results. But let me just show you this one in a downtrend. I would not take a I would not like this one. This one oil and gas it's been doing well. AM you can see it's been uptrending. This one you can see that it's kind of a triangle breakout over here. You can see that's a good thing with VINVIS. It kind of shows you some basic technical analysis charts pattern. So, this one is a rising wedge breakout as well. AM nothing here. This is not a long-term downtrend at all. In fact, this AMKR is the kind of chart you want to avoid. There's no breakouts at all. It's not making higher lows. This is one probably going to continue fading lower. So, using this very simple scanner with all the free settings that you saw earlier, it's how I found some of the chart patterns that you saw earlier in the video. Remember, with these criteria that you see on screen, you can pretty much use it for any scanner that you're using, free or paid. Or if you have questions regarding the chart analysis process we just did, analyzing the scan results one by one, then you can ask me in the comment section below. I'll do my best to answer them. I have even more swing trading resources below in the video description. More in-depth free master class, the brokers and charting platforms I would recommend for swing trading. Everything is down below. Coming up next in this video over here, I share my favorite swing trading strategies with you step by step. And I'll see you over there.