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People use scanners to find gaps, new highs, breakouts, Bollinger band penetrations, or whatever. Why? They look for these situations because they often mark the beginning of a significant move or trend. Those with experience with most scanners know that there is usually a big difference between what they are looking for and the output of the scanner. Not only that, but the conditions searched for often fail to produce the new surge or trend. Stocks often have a “breakout” and then collapse back below the breakout point.

However, If a new trend actually does develop after a gap up, a new high, a price breakout through resistance, a Bollinger band penetration, or whatever else a person might try to find with a stock scanner, that new trend will produce a moving average crossover early in its development. Scanning for moving average crossovers will detect all new trends regardless of how they get started.

We scan thousands of stocks using for alert generators the 3x30 dual MA system (the 3-day MA crossing over the 30-day MA), the 5x50 dual MA system, the 7x13 dual EMA system (7-day exponential MA crossing over the 13-day exponential MA), a 4x9x18 triple moving average crossover system (R.C. Allen variation), and a 3x13x39 triple moving average crossover system. Each of these systems requires that the average volume for the last 3 days be greater than the 10-day average volume was four days prior to the crossover. That is, the crossover event must be associated with at least a small increase in volume. The triple moving average systems also specify that when an upward crossover occurs all moving averages must be in proper alignment AND still rising. Similarly, at a downward crossover all moving averages must be in proper alignment AND still declining. For example, if the 4-day MA is above the 9-day MA and the 9-day MA has just crossed above the 18-day MA, an alert will be generated only if all moving averages are still rising. If they are in proper alignment but the 4-day MA has started to decline, an alert will not be generated. This helps filter out situations where a whipsaw (reverse crossover) may be about to occur.

The purpose of this scanner is to help you find any stocks that are just beginning a new trend. Our scanner looks for crossover events in either direction. It generates an alert for each crossover, names the stock and gives its symbol, identifies the system that generated the alert, identifies the direction of the crossover, gives price and volume surge information, and provides a Relative Strength (RSI) measurement.

We use two volume measurements to screen “alert candidates.” The first of these is the 1-day change in volume (column 6 in the above image). For example, if an "Up” alert crossover has just occurred but the volume has declined, then the "Up” alert is not trustworthy. We require a volume surge of 20% or more to generate an alert on market surge days but may reduce this threshold somewhat on “quiet days.” We provide the numbers so you can be more demanding if you wish. The second way we use volume is by comparing the average volume for the last 3 days to the average as of 4 days before (column 7 in above image). If the average volume for the last three days has declined, an alert will not be generated because the volume decline renders the alert “untrustworthy.” The average volume four days earlier is probably unaffected by the recent conditions that triggered the alert. The reason for using a 3-day average of the volume is that a volume surge sometimes occurs before the day of the crossover instead of on the day of the crossover. This 3-day measurement should detect a volume surge even if it took place a day or two before the crossover. Again, we provide the numbers so that you can be more rigorous in your requirements.

We also provide the price change for the day so that any price surges can be detected. Obviously, a crossover with a price surge is of greater interest than a crossover without a price surge. Such crossovers are also less likely to whipsaw. This metric could be used in combination with volume changes.

In addition, the Welles Wilder Relative Strength Index (RSI) is provided for each stock that generates an alert. The reason for including the RSI is that it provides an additional screening mechanism for those who want it. If a stock has an upward surge during its crossover, the RSI will be higher than if it does not. For example, a person could "filter" through the stocks that have generated an "Up” alert by ignoring alerts that are not accompanied by a higher than average RSI reading. The threshold of what is acceptable could be set at any level. Higher RSI readings also tend to reduce the probability of a whipsaw.

Scan results are posted daily for subscribers.

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Annual Fee: $165.00 Sale Fee $125.00