|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
Stock scanner questions link. Scan thousands of stocks, find charts with breakout patterns, stocks with attractive “setup" patterns, reversal patterns, and other “watch list” candidates. Before we get into a description of this scanner, however, you should be aware of the fact that there are more than 6 other scanners on this Web site. For example, we provide a free daily list of stocks that surged 2% or more in price with a volume surge of at least 50% (they are listed on the "Market Review" page). Our other scanners focus on such things as gaps, Bollinger Band squeeze alerts, breakouts, and so on. This particular scanner does not focus on these specialized alerts. Instead, it is designed to detect the early stages of any significant movement.
. A crossover of the closing price and a moving average is very uncertain and subject to whipsaws. By using a short moving average instead of the closing price, we reduce whipsaws considerably. Taken together, these signal generators act as a kind of radar, detecting action wherever it occurs over a wide spectrum of sensitivity levels. These alerts are intended to draw your attention to potentially interesting developments very early in their development. You will still have to review the stocks visually and possibly even monitor them a few days to see if the situation under development calls for action on your part.
.
What Does This Stock Scanner Do? People use scanners to look for gaps, new highs, breakouts, Bollinger band penetrations, or whatever. However, the bottom line is that these events are believed to be the beginning of significant price movement in the same direction (a new trend). If a new trend actually develops after one of these events, that new trend will produce a moving average crossover early in its development. New trends may be preceded by a price gap, a breakout through resistance, a Bollinger Band penetration, or whatever. However, scanning for moving average crossovers will detect all new trends regardless of how they get started. People use stock "filters" and "scanners" in an attempt to buy early when a stock is surging, starting a new trend, or undergoing a price reversal. Those are the bottom line purposes of most people who use scanners. The bottom line purpose of this scanner is to help you do precisely that--to find stocks that are just beginning a new trend. It scans thousands of stocks using 6 different moving average crossover systems having a wide range of sensitivity levels, looking for crossover events in either direction. It generates an alert for each crossover, names the stock and gives its symbol, identifies the moving averages involved in the crossover, identifies the direction of the crossover, looks for volume surges, gives price and volume surge information, and provides a Relative Strength (RSI) measurement. The Systems Used We scan thousands of stocks using the following alert generators. the 3x10 dual MA system (the 3-day MA crossing over the 10-day MA with a surge in volume), Let's say your initial interest is in finding Bollinger Band breakouts. While the crossovers do not find Bollinger Band alerts specifically (see StockAlerts for a scanner that will do that), they will detect any trend that results from a Bollinger Band breakout. In fact the first two crossover systems in the above list will usually detect a developing trend before a Bollinger Band penetration occurs. The following chart of Apple (not recent) shows green Bollinger Bands. The Red line is the 5-day moving average and the blue line is the 15-day moving average. The crossover occurs at the red arrow. The upper Bollinger Band penetration occurs three days later.
We display the price change so you can spot any price surges. Obviously, a crossover with a price surge is of greater interest than a crossover without a price surge. This metric can be used in conjunction with volume changes. We display two volume measurements by which you can screen your candidates. The first of these is the 1-day change in volume. The second way we use volume is by comparing the 3-day moving average of the volume to the 3-day moving average of the volume as of 4 days before. Sometimes a volume spike will occur just before the signal. A 3-day average volume measurement will be higher than it was four days earlier if there has been a recent volume spike. You can filter the results by requiring that the volume surge be of a certain magnitude. 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 given an "Up Alert" by requiring that such alerts be accompanied by a certain RSI reading before it becomes truly "interesting." Because the database that is being searched is large and because there are 6 different alert systems looking for signals, the list could be long at times. However, we filter the list somewhat by requiring that all crossovers must be accompanied by at least a 25% increase in volume on the day of the crossover. We also have an additional filter for volume surges. That filter is usually set to 50%. With that setting, no crossover will be reported unless there is an accompanying 50% surge in volume. The first volume filter (set at 25%) is hard-wired into the systems as a minimum requirement. The second filter is adjusted as the situation requires. For example, if the volume surge filter is set at 50% and 500 stocks generate a crossover alert, we might adjust the filter to 75% or 100% to reduce the number of alerts to a more manageable number. Similarly on days when there are few crossovers that pass the 50% surge in volume requirement, we may lower the requirement of this filter in order to increase the number of alerts. The volume surge filter that is used in a scan is posted on the report. We prefer to post no more than 100 alerts, though we may sometimes post more. You can use the change in the 3-day average volume and/or the RSI yourself as additional filters. A volume decrease undermines the credibility of an alert. The volume increase is posted for those who want to filter with stricter requirements. Often a stock that has just had a cross of its moving average will also be in a "setup pattern." Look for setup patterns that suggest a significant move is likely to take place soon (there are demonstrations of pre-surge "setups" in the alerts videos). Top stock traders monitor a large "watch list." The Stock-Scanner can be a great tool in helping a person create such a list. When a signal is generated and the stock chart is reviewed, it may be obvious that an immediate purchase or sale is appropriate. If not, the stock can be put on the "watch list" and monitored for a "trigger event" or some subsequent surge in price or volume that convinces you that it is time to act. In other words, Stock-Scanner can not only find stocks calling for immediate action, but it can also be a useful tool in building a watch list of stocks "on the verge." It can "feed" a final stage "watch list" with likely candidates. It covers a large number of stocks, saves considerable time, and adds discipline to the search for investment candidates.
The Alert Table Generated If a stock's 3-day MA price crosses from below to above its 10-day moving average, an alert is generated that reads, "3x10U." On the other hand, if its 3-day MA price crosses from above to below its 10-day moving average, an alert is generated that reads, "3x10D." Similar alert signals are generated for the other moving average systems. If three alerts are generated simultaneously, they are all reported. For example, the report might read "3x10U 5x100U 5x150U" The percent change in price for the day is in column 5. The percent change in volume for the day is in column 6. The change in the 3-day average volume relative to the same average four days ago is in column 7. The meaning of the other columns is self-evident. Look for a volume surge to validate price surges and crossovers (a price surge of 2% on a 50% decrease in volume is not very promising). If there is a price surge on a crossover that is accompanied by a significant increase in volume, the situation is definitely worth a careful inspection. There are few "Up" signals in the following sample table because it was generated at a time when the market was declining. In fact, declining stocks outnumbered rising stocks by more than 3 to 1. [only a portion of the stocks listed in the report are shown here] A new list is generated daily for subscribers..
.
.
. The Valuator does not report PE and PEG ratios based on last year's obsolete data. Nor does it try to look ahead a full year (analysts are notoriously inaccurate when they try to estimate a year ahead). Instead, the 1-year earnings estimates it uses for computing PE & PEG ratios look ahead only about 6 months (6 months past + 6 months future). We believe this is far more accurate. Also, the market tends to look ahead about six months. . A study has been made of the search engine entries people make, where they land on the Internet, and what they do after landing. It turns out that people tend to be a bit too "jumpy" when they surf the Web. If they do not instantly see what they are looking for on their "landing page," they jump to another site. They often jump when precisely what they are looking for is on the same site where they landed but on another page. How could that apply to this site? We have two pages, several tutorials, and a product offering that deal with stop losses in different ways. The search word combination a visitor uses may simply connect to the wrong page. Even a change in the word order of your entry can make a difference in your "landing place." If you don't see what you want, it could be well worth the time it would take to check our Index before jumping someplace else.
.
. 5 x 30 Links To Other Places On This Web Site Stop Losses Stops Products The Valuator StockAlerts Trading Tools About Us Contact Us Fees & Refunds Links Index . All pages on this Web site are protected by copyright Copyright 2010 by Stock Disciplines, LLC No part of this publication may be reproduced or distributed in any form by any means. .
.
.
.
"But thou shalt remember the Lord thy God: for it is he that giveth thee power to get wealth." Deut. 8:18
.
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
