How I generate my breakout anticipation watchlist | stockbee

8/14/2014

How I generate my breakout anticipation watchlist

Everyday I prepare a list of stock likely to breakout that day or in next few days and publish it on the Stockbee members site. Today i have following stocks on my list.



ICLR
FCN
CATM
SANM
XPO
TWTR
AA
QLIK
NQ
RKUS
ANFI
VDSI
CIT
BMA
VPRT
PII
HBI
 
Anticipating a breakout gives you an early entry into a breakout. As my account size keeps on increasing I am now spending more and more energy on trying to anticipate breakouts and  entering very close to breakout level. Infact I am currently working with someone to make the entire process fully automated so that entry happens as soon as breakout is detected.

In order to generate this list I use a simple 15 minute process flow.  The starting point is two scans I run in Telechart .

DOUBLE TROUBLE 1% MOVER SCAN

  • US common stocks
  • c/minl252>=1.8 and minv3.1>=100000
  • Price % change Today between 1 to -1%

TI65 1% MOVER SCAN

  • US Common stocks
  • avgc7/avgc65>1.05 and minv3.1>100000
  • Price % change Today between 1 to -1%
After running these two scan I merge them together as some stocks will be common.Then I go through the list to find setups that are setting up for possible b/o

WHAT TO LOOK FOR IN GOOD ANTICIPATION SETUP

  • series of narrow range days in pullback/consolidation
  • orderly pullback with no 4% b/d during the pullback or consolidation
  • low volume pullback
  • low volatility during pullback
  • linear first leg if looking as continuation setup
  • Stock should go up smoothly and not in volatile manner
  • 3 to 10 days consolidation/pullback
  • not up 3 days in a row
Once a list is generated I reduce it to 3 to 5 candidates to focus on. For them I pre calculate price at which I want to enter the stocks. Then I create orders at those levels if there is capital in account for new position. Or else I create an alert.
If you want to make serious money swing trading following a simple process like this will find you daily opportunities. 

No comments: