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Getting started With ChartMill For Day and Swing Traders

By Kristoff De Turck - reviewed by Aldwin Keppens

Last update: Feb 12, 2024

Day and swing trading based on technical analysis are both strategies that start from pure price action movements. In this article, we will cover some basic trading ideas in ChartMill that will get you started with day and swing trading strategies.

Day trading concentrates solely on intraday price action. A big advantage for day traders is that they never have to deal with overnight risk, since all open positions are irrevocably closed before the end of the trading day.

Swing traders on the other hand hold positions for several days, weeks and sometimes even months (as long as the prevailing trend keeps them in the market).

More details about day trading can be found in this article and an extensive article about swing trading can be found here.

Trading Ideas for Day- en Swing Traders

The trading ideas listed below are an ideal starting point for finding quality setups that can be used by both day and swing traders.

The daytrader will choose the ideal entry point based on his favorite intraday time frame (1m, 5m, 60m,...). For the swing trader, such short intraday time frames are less important. The position is usually taken based on the daily chart or on intraday time frames of at least 60m or higher.

High Trend Intensity on Increased Volume

This screen finds stocks in a strong trend that are moving on increased volume. There is not necessarily a good entry point, if not it may still be interesting to put these stocks on a watch list.

Direct Link to this Trading Idea

Squeeze Play Setups

This screen finds squeeze play setups on stocks that are in a strong uptrend. A squeeze play setup occurs when the Bollinger Bands are inside the Keltner channels. When this happens, the stock has been trading in a narrow range for a while. A major move could happen when the stock breaks out of this trading range.

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Near 52 week High + High Relative Strength

This screen finds strong stocks near a new high. This list allows you to find stocks 'about to make a new high'. Good bases still need to be found either by further filtering or by manual inspection.

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Finding Narrow Trading Ranges using ChartMill Channels

Find strong stocks in the market that are in a narrow trading range. We use Chartmill Channels to determine the trading range. By using the Chartmill Technical Quality Score we make sure to select stocks that are in an uptrend and technically solid.

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Bull Flags

This screen finds bull flag patterns. A bull flag is a technical continuation pattern which can be observed in stocks with strong uptrends. The pattern takes shape when the stock retraces by going sideways (or by slowly declining) after an initial big rise in price. When you see the graphical representation of this pattern, you’ll notice that it somehow looks like a flag on a pole.

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Price near rising SMA10

This screen finds stocks in a rising trend that have pulled back close to the SMA(10) level.

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Some other useful resources…

For both day and swing traders, the focus is exclusively on the price chart. A good understanding regarding support and resistance levels, the current price trend of the stock and what role volume plays in it are important.

Here are some articles to get you started:

The importance of Volume in trading and investing

In this article we will deal with the concept of 'volume' in trading and the way this indicator can give important indications when making buying or selling decisions.

How To Find Support and Resistance?

A good understanding of support and resistance is much more than just some lines drawn on a chart. Being able to discern specific price areas that determine price trends is critical to becoming consistently profitable.

How to Use Moving Averages to Determine the Trend?

Moving averages can be used in many ways in different types of trading strategies.. Perhaps one of the best known and easiest way is to determine the trend using a specific moving average.