The idea is to screen for pocket pivots and effective volume studies that show large players accumulating. You look for a positive divergence between large player volume and price and make sure the Twiggs Money Flow confirms the positive divergence on the large player volume. I would not enter a swing long position if the Twiggs Money Flow doesn’t confirm the signal.
What makes this simple swing trading strategy so awesome is that you can use one tool called Chartmill here to quickly screen thousands of stocks for large players and pocket pivot signals.
Simple Swing Trading Strategy
Log in to your Chartmill account and click on Charts at the top of your screen:
In the Add Indicators box, add the indicators: Simple Moving Average (50), Effective Volume: Large Players (), Pocket Pivots (Kacher/Morales)(10,2), Twiggs Money Flow (21), and Support+Resistance Lines():
Now save those chart settings by clicking on the little menu graphic button, and then the Save button in the top right corner of your screen:
Please note, there’s two menu graphic buttons on the right side of your screen. You want to click on the top most menu graphic.
Now that your swing trading chart indicators are saved, to screen for stocks using the simple swing trading strategy of large volume and pocket pivot signals, click on Shared Screens at the very top:
Now scroll down and select “large effective volume + pocket pivot today”:
Charts will populate on your screen. What you are looking for are stocks that have been consolidating with rising large players volume and a recent pocket pivot signal.
When you find a stock that looks interesting, copy the ticker symbol. Now go back to the Charts area and type in the ticker symbol and load the default chart settings you saved in the steps above.
You are looking for the Twiggs Money Flow to confirm the positive divergence between large player volume and price action.
This is a really simply swing trading strategy that is working nicely right now. Below is a video lesson I did of the steps above for those of you who find it easier to follow along by looking at my screen.
IMPORTANT! I created a rising large players volume screen that automatically detects divergences between large players volume and price. Here is how you access the GST Positive Divergence stock screener inside Chartmill.