Most traders lose money on swing trades because they chase momentum after it's already played out. Here's the framework I use to filter setups:

1. Relative strength on a red day

If the market is selling off and a stock is holding green or flat — that's institutional accumulation. I'm adding it to my watchlist immediately. The best swing entries come when the tide goes out and your stock doesn't sink.

2. Volume confirmation on the breakout candle

A breakout without volume is just a trap. I need to see at least 1.5x average daily volume on the day the stock clears resistance. Anything less and I'm sitting on my hands.

3. A clear invalidation level

Every trade needs a "I'm wrong" price. If I can't define where I'd cut the trade, I don't take it. My stop is always below the most recent higher low on the daily chart — tight enough to manage risk, wide enough to avoid noise.

This framework has kept me on the right side of most moves. It's not about being right every time — it's about having a process that keeps your edge over hundreds of trades.

I share setups like this daily inside Signal Capital. If you want the full breakdown with specific tickers, strikes, and entry prices — come join us.