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Stocks with sudden price increases (surges) & volume changes, stocks starting new trends, breakouts through overhead resistance, selling climaxes, reversal patterns, and "watch list" candidates. For information on pre-surge setups and the scans available for them, go to Pre-Surge Setups. Also, see Focus on Setups to Reduce Risk. Sudden Increases in Price & Volume (Surges, Spikes, & Gaps) Why monitor price and volume surges? Consider the following. When traders believe their indicators suggest a stock is about to break through a line of resistance some will act in anticipation of the event (buying pressure will increase). Other traders will buy when they notice, even before the breakout, the increase in volume on price increases and diminishing volume on price declines. When a stock actually breaks to the upside through resistance, other traders will notice and buy, causing the price and volume to surge. These conditions often precede the beginning of a significant price move. It is only logical that if a company has just developed an exciting new cure, product, or service, people will hear about it and act accordingly. The price of its stock will surge and its trading volume will increase (the stock price will pick up momentum). High-powered professional traders have systems that flash an "alert" or "signal" when a stock has an unusual price and volume surge. When they note it, they will buy and the price/volume surge will be magnified. Whenever a stock starts a new trend, it draws attention. Traders like to buy at the beginning of a trend. Therefore, when the price spikes up and the volume surges, momentum for the new trend builds. When a stock has been declining and the last holdouts give up, their selling will cause the stock to decline even more as the volume surges. Traders will notice the stock's behavior and buy the "bargain." Volume will increase even more as the price reverses direction. In this scenario, the stock has just had a selling climax and a price reversal. More traders will then notice that there has been a "selling climax" and begin to accumulate. Others add the stock to their "watch list" so they can buy as soon as the new trend takes on more definition. Most of the time, the surges highlighted on an alert list will not be particularly attractive to a trader because the stock's pattern will be compromised by nearby overhead resistance. However, the alerts sometimes present an opportunity to get in at the beginning of a nice move. A stock's closing price relative to the day's price action and overall price pattern, and its volume at the close (and the percentage change in volume for the day) are important when the stock has had a price surge, gap or spike. These lists are presented so that you can evaluate the situation for yourself. Individual Stock Alerts (Price Surges)
The free lists of surging stocks provided daily here focuses on 1-day surges and are found by scanning our general database of several thousand stocks. These stocks have all experienced some unusual action. A daily review of the charts of stocks listed here can uncover stocks that have recently started out on new trends, stocks breaking out of a consolidation pattern, or stocks that have had unusual market activity for some other reason. We suggest reviewing the charts of these stocks to see if they are of sufficient interest to warrant purchase or inclusion on your "watch list." One reason for including a stock on your watch list is so you can monitor it while waiting for a good entry point. For example, you might wait for a pullback to a rising trendline. You might also wait for some sign that the trendline is holding or that the stock is responding to it in a positive way. Waiting for such a pullback can also help you optimize your stop-loss placement. The buy price is then only slightly above support. Therefore, when the stop loss is placed a little below the expected support (the trendline), any decline that triggers the stop will be a meaningful decline because support could not stop the decline, but the decline will also be relatively small (and so will any consequential loss if the unexpected happens). The free list posted here consists up to 100 stocks that have surged in price by at least 2%. Most of the time they have also had a volume surge of at least 50%. However, if there are very few surging stocks, we may reduce the volume surge requirement (10% is the absolute minimum volume surge requirement, but the volume surge requirement for listed stocks will usually be 50% or more). For example, if there are more than 100 stocks that have surged in price 2% or more and that also have had a volume surge of 70% or more, then we simply list the top 100 stocks in order of volume surge magnitude. In the unusual situation where there are not many surging stocks, we may reduce the volume surge requirement to as low as 10% so that we can still provide a list of stocks that are worth checking. [When we reduce the volume surge requirement to 10%, there will likely still be some in the list that had a volume surge of 20%, 40% or more. The 10% figure is only a minimum qualification figure. In any case, the volume surge percent used in our screening is reported at the top of the table so you can do your own screening.] Many of the stocks on this list will not be particularly attractive to a trader because the stock's pattern will be compromised by nearby overhead resistance. However, the alerts sometimes present an opportunity to get in at the beginning of a nice move. A stock's closing price relative to the day's price action and overall price pattern, and its volume at the close (and the percentage change in volume for the day) are important when the stock has had a price surge, gap or spike. These lists provide an opportunity for you to be aware of the surge and evaluate the situation for yourself. Remember that volume changes are important. A price increase of 1% combined with a 50% volume decrease is not particularly noteworthy. However, a price increase of 1% combined with a 50% increase in volume will generate some interest. The numbers reported are percent changes for price and volume respectively. For example, a reading of 23 in the "Vol % Ch" column would mean that volume surged 23%. Short-sellers will be interested in stocks with large negative surges on heavy volume. **We have added hundreds of ETFs to our master stock list so that subscribers will have a greater variety of opportunities for investment. Most but not necessarily all ETFs on our master list have the letters ETF after their names to differentiate them from stocks of individual companies. On this Web site, "ETF" is used as a broad generic label. Therefore, Vipers and ETNs may also have the letters "ETF" added to their names. ETFs trade just like any other stocks. Some ETFs are inverse (they go up when the underlying securities in them are going down). Therefore, if the market is bearish, the number of ETFs included in our scanner reports may increase significantly (because there will be an increased number of inverse ETFs rising or undergoing a positive setup pattern). The inclusion of ETFs increases the odds that at any given time there will be purchase candidates, whether a person is bullish or bearish. If your investment approach does not include ETFs, simply ignore any stock with the letters ETF after its name.
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Stocks Surging in Price and Volume
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