StockFetcher Forums · Filter Exchange · Excellent Breakout Warning Filter!<< 1 2 3 >>Post Follow-up
37 posts
msg #32319
Ignore siliconhippy
6/10/2004 12:44:13 PM

The above filter (reposted from AntNet Weekly) gives me 48 matches (EOD 6/9.)

Also my weekly tweak, as in my post from yesterday, gives 8 matches, once you remove the price and volume restrictions (close between 5 and 50; volume above average volume(20) .)

1. Does this mean my weekly tweak has tighter breakout req, as AntNet mentioned?

1. Do you folks think my above price/vol additions can result in a better, more stable list? i.e. avoiding penny stocks and making sure the volume is "good" enough


36 posts
msg #32322
Ignore AntNet
6/11/2004 1:13:04 AM

As it seems we are proceeding, except for a few issues SF Support has yet to address, I thought I reply to the question posted ealier:

What tips can you give regarding identification of "top" candidates since the list can be long?

I do a "Match List" of the Daily and Weekly picks. The stocks that show up on both are prime candidates for a move.

On the low end (below $5.00) I BUY in my IRA Account, usually up to a maximun of $1000.00 in even 100 lots because sometimes it's possible to do a "Covered Call". (Yes, Covered Calls can be done in an IRA).

I usually time my entry using ADX(8) with +|-DI(14). You read that right! ADX(8) with +|-DI(14). (Think outside the box!)

I also want to see a close above CWMA(13) and once in use CWMA(30) as an absolute exit. I usually place a GTC EXIT somewhere between $0.20 to $1.00 above my fill depending on the historical range / movement of the stock. I try not to hang on to these for more than 2 to 3 weeks. (Although if you look at the charts a trailing stop can yield some impressive gains.)

For higher price stocks (above $35.00) I use options. I only pick the ones that are at or within a few cents of the strike price and buy an ATM straddle (at the money Call & Put) at least 3 cycles out and sometimes Leap Straddles.
(If the numbers are right I might SELL a further out "Strangle" to take in some premium to offset the Straddle cost. My Money Management approach is NOT to spend more than $1,000.00 in any stock. This forces diversity and limits risk.) These need to be monitored a bit more. Often you can break the Straddle and make money both ways!

In any case, look back at what the stocks did after being picked up by this filter. In many cases I've seen the "Raw Breakout" signal with and often just prior to some of the more popular filters discussed in the SF Forums.


36 posts
msg #32323
Ignore AntNet
6/11/2004 3:48:45 AM

As of EOD 6/10:

1. Original "Un-Revised" Daily Raw Breakout = 68
2. Original "Un-Revised" Weekly Raw Breakout = 64
3. "Revised" Daily Raw Breakout = 72
4. "Revised" Weekly Raw Breakout = 63
5. Match List 1 vs. 2 = 9
6. Match List 3 vs. 4 = 9 (same 9 as 5)

Q. What's wrong with this picture?

A. The relationship between 2 and 4 CAN NOT be correct!

Mathematically, 2 MUST be a Sub-Set of 4 and therefore 4 can NOT be less than 2.
(The Revised version "includes" High or Low "EQUAL TO" and Above CWMA while the original defined Above ONLY.)

The mystery continues! Could it be a BUG that rounds values differently before doing the filter comparison?
(What is the SF Support take on this?)

Tip for Raw Breakout users and actually applicable in all cases.
As you decrease the Volume requirement in a filter you MUST increase the period of the filter to avoid false results due to Volume Spikes.

It could be fine to trade a stock in the 50,000 to 100,000 daily volume IF that volume is consistent.
50,000 AvgV over 90, 120 or 200 days is much safer than 50,000 AvgV over 20 or 50 days.

In reply to:
1. Does this mean my weekly tweak has tighter breakout req, as AntNet mentioned?

As of EOD 6/9 your unchanged filter version = 4 picks
As of EOD 6/10 your unchanged filter version = 0 picks
This filter definitely imposes "tighter" filter parameters.

2. Do you folks think my above price/vol additions can result in a better, more stable list? i.e. avoiding penny stocks and making sure the volume is "good" enough

To avoid penny stocks "Not OTCBB" is already included. To be further restrictive "and Optionable" could be used.
In fact I use that criteria regularly because I often trade Options.

Raw Breakout is just a "First stage / cut filter". It only tells you, with high reliability, here is a candidate that is probably going to make a nice move that you can make some money on. It should give you enough time to determine how to trade the move using methods you have confidence in.

For those of you using eSignal as your charting tool, I can send you my template with the custom EFS indicators I use with Raw Breakout. (This is NOT an offer to Sell these indicators. If you can use them and want them, ask and I'll give them to you.) You can contact me using BLBANT at HOTMAIL dot COM. Please don't tie up this forum with requests. Be sure to include StockFetcher in the subject line or my SPAM program will probably delete you before I see the message.

Good Trading,

37 posts
msg #32324
Ignore siliconhippy
6/11/2004 1:26:01 PM


Nice answers ! I will try out your filters, and be in touch.


37 posts
msg #32371
Ignore siliconhippy
6/17/2004 9:59:17 AM


I have been watchlisting your filter. You are right. It actually shows many potential breakouts *far* ahead. But it generates too many candidates (about 199 yesterday.)

Anything more narrow you have?


3 posts
msg #32390
Ignore jeffreed44
6/21/2004 9:33:12 AM

Hi, I'm pretty new at this and I have been looking for a filter to use. I have done some back testing with yours and it seems to work pretty well. can you tell me in plain english what it is doing?

36 posts
msg #32404
Ignore AntNet
6/22/2004 3:59:53 PM

I use a real time streaming data, charting program with several other indicator variations to make my trades.
(SF has not yet made them available, but I've ask and they are looking into it.)

The SF Raw Breakout filter gives me candidates to watch. I usually do a Daily vs Weekly Match.
Only 3 stocks showed up in that match yesterday.

You can also either "Match" or "Chain" other filters with "Raw Breakout".

For example on the SF Home page (see trade set-ups and comments) combine the "Volatility Breakout"
with "Raw Breakout" and you can really narrow the field.

Watch for Breakouts that occur :
at strong support or resistance levels like the CEMA(PP,50) and CWMA(PP,200),

after a long run of Higher-High and Higher-Low or Lower-Low and Lower-High Swings,

As well as Stochastic, RSI, ADX and Candle overbought or oversold formations.

There is no one magic buy/sell filter.
You have to be able to read the market and understand what the filters / indicators are telling you.

The Raw Breakout works because it identifies extreme consolidation after which a period of
buying or selling must follow, and usually in fairly short order.

There is a suspect / danger when the day range is unusually larger than normal. Large day ranges will often
trigger the Raw Breakout and result in a whip-saw pattern.
Raw Breakouts with "Very Narrow Range Days" often indicate a continuation of the consolidation.

Hope this help, good trading,

58 posts
msg #33286
Ignore RocketFetcher
9/17/2004 9:17:41 AM

Just came across this thread while searching for posts on consolidation filters; can you post an update as to how the filters discussed here are working for you since June? Have you tweaked them at all? Thanks so much!

150 posts
msg #33303
Ignore defghca
9/18/2004 9:29:10 AM

as for the equal or below clause, don't sweat it: in SF "below" means equal or smaller than (see page 8 of SF guide) and example below
SF[close is below 0.6]

150 posts
msg #33307
Ignore defghca
9/18/2004 12:41:35 PM

sorry, Tomb corrected the "below" to < only. see my post in comments...

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