How to Catch Monster Stocks: A Data-Driven Swing Trading Rulebook

Swing Trading is an art backed by data. The harsh reality? 95% of swing traders fail to catch monster stocks that move 100–200% because they lack a system.

After analyzing four years of past winners, I identified a 5-rule setup to catch high-momentum stocks consistently. This article will break down these rules with simple logic, examples, and even some Python code to help you understand the process better.

Step 1: Identify the Best Market Conditions

The Power of Moving Averages (10–21–50 EMA)

A key insight from analyzing past trades:
📌 Markets perform best when they are above the 10, 21, and 50 EMA.

Key Observations from the 2022 Bear Market

• Highest Trading activity was observed in specific months:
• January 2022: 28 trades
• July 2022: 24 trades
• December 2021: 21 trades
• August 2022: 18 trades
• November 2022: 17 trades
• Best Trading weeks:
• The first week of the month had the most entries