by Ryan Mallory

I've added all three of these stocks to my watch-list today, as I found the price action very inviting. 

As with any small cap/low dollar stock there is a lot more risk that is involved in trading them, but with that comes the alluring possibility of out-sized gains that might not otherwise be realized trading a large cap stock. 

The three stocks below, Frontier Communications (FTR), Revolution Lighting Technologies (RVLT), and Central European Media (CETV) all offer valuable trading opportunities for right now, and if you are into the small cap trading like I know many of you are, you would be foolish to not add these stocks to your watch-list just as I have done. 

And it just isn't swing-trade setups that you can use these for, I would say they also fall into the day-trading category just as much as I would consider them to be a swing trade too. 

Here are the three small cap swing trade setups. 

by Ryan Mallory

I like this trade setup quite a bit and has served me well so far with  Hornbeck Offshore Services (HOS). 

I swapped Diamond Offshore Drillers (DO) for HOS and the net gain between the two has been much better had I just stayed in overextended DO. 

The ascending triangle breakout at the highs is often times one of you most reliable trading price patterns that you'll find in a very strong bullish market. I also like how the coiling price action represents less than one-third of the total price move from the April lows. That helped confirm for me that he price move was much more of a temporary holding pattern than any shift in market sentiment, which gave me the trading edge I was looking for. 

Here's the HOS Swing-Trade Setup.

by Ryan Mallory

Here's my only trade today, and it comes in Diamond Offshore Drillers (DO). I love the inverse head and shoulders pattern we are getting here, and I think that it should, at the very least make a push above $75. We have also seen some strength out of other offshore drillers recently, like Hornbeck Offshore Services (HOS) that has a beautiful bull flag pattern in the works. 

Here is the DO trade setup.