EWZuber
1,373 posts
msg #34797
- Ignore EWZuber |
1/7/2005 3:11:37 AM
rsarno
Here is a simple filter that offers some good candidates.
Find stocks trading between $0.50 and $15 and Slow stochastics(5,3)%K less than 15 and MA(15) is below closing price and average volume is more than 100,000 shares.
This looks for stocks that are oversold on the daily chart and are about to test the 15 DMA as support. It finds aggressive and bullish stocks because if they are oversold and only testing the 15 DMAS then the MA is likely in a very steep uptrend.
A good example of a return on that filter is IED on a 6 day back test. It formed a dragonfly doji while oversold and testing the 15 DMA that is in a nice uptrend. A very nice set up. With the MA in an uptrend it can serve as excellent support.
On a 7 day back test it produces BWEB that was actually testing the 25 DMA as support while oversold. I like this one because the Weekly and Monthly Chart is also in accumulation. This fits my Convergent Stochastic Theory.
The filter also brings up CTMI on the same 7 day backtest but this one has dropped in price considerably. The difference here is that this stock was in a distribution phase on the Weekly Chart which has a more powerful influence on a stock than the daily Chart indicators. So a phrase can be added to eliminate these;
Find stocks trading between $0.50 and $15
and weekly Fast Stochastic(5,3) Fast %K crossed above Fast Stochastic(5,3) Slow %D within the last 3 week
and Slow stochastics(5,3)%K less than 15
and MA(15) is below closing price
and average volume is more than 100,000 shares
What I don't like about this phrase is that it puts a time constraint on the stochastic crossover. I have only been able to use these stochastic indicators with Stockfetcher using either time or value restrictions. What I am really looking for though is just the fact that the stock is in accumulation on that chart. I would like to find a way to just screen for a rising fast or slow line. Here again the phrase offered by Stockfetcher qualifies this by demanding 'for how long' stochastics have been rising.
I also recommend checking the weekly chart by hand to confirm that the screen has correctly identified the weekly stochastic accumulation phase. I have noticed that often it is incorrect.
Maybe someone reading this has a remedy.
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dangreene
229 posts
msg #34800
- Ignore dangreene |
1/7/2005 12:01:36 PM
EWZuber,
Your filter as posted;
Find stocks trading between $0.50 and $15
and weekly Fast Stochastic(5,3) Fast %K crossed above Fast Stochastic(5,3) Slow %D within the last 3 week
and Slow stochastics(5,3)%K less than 15
and MA(15) is below closing price
and average volume is more than 100,000 shares
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I THINK you meant to say;
and weekly Fast Stochastic(5,3) Fast %K crossed above WEEKLY Fast Stochastic(5,3) Slow %D within the last 3 week
Does this give you what you are looking for???
dangreene
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EWZuber
1,373 posts
msg #34830
- Ignore EWZuber |
1/10/2005 2:26:08 AM
dangreene
I have changed the Weekly Chart stochastics parameters and like the results much better. It resolves the problem with value and time requirements that I had been using. Should have thought of this earlier.
Find stocks trading between $0.50 and $15
and weekly slow stochastics(5,3) Fast %K is above weekly slow stochastics(5,3) Slow %D
and Slow stochastics(5,3)%K less than 15
and MA(15) is below closing price
and average volume is more than 100,000 shares.
Stochastics and moving averages can provide good results with value changes. For instance Daily Chart stochastics @ 40, or DMA @ 25.
Using DMA's of longer duration typically will include stocks that have been less aggressive or more volatile.
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EWZuber
1,373 posts
msg #34831
- Ignore EWZuber |
1/10/2005 2:41:02 AM
korzym
Sorry thats rule 2520. It basically says that anyone who has less than $25K in their trading account makes more than 4 daytrades within a 5 session period is branded a 'Pattern Day Trader'.
With this designation you will be restricted in how often you can trade.
You will not be allowed to make more than 3 or 4 daytrades ( depending on your broker ) in any 5 session period or your account will be frozen for a period of 5 sessions.
If one continues to attempt this they may get their acount closed.
The NASDAQ and SEC apparently believe that only people with wealth should have unfettered access to the market and those attempting to pull themselves up financially should be restricted.
They have basically created a caste system.
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EWZuber
1,373 posts
msg #34832
- Ignore EWZuber |
1/10/2005 3:15:24 AM
Also added to these filters
Example;
'and the close is near MA(25)'
or whatever MA is being screened for.
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