How to find stocks setting up for breakouts | stockbee

9/06/2016

How to find stocks setting up for breakouts


To anticipate a breakout look at stocks currently not undergoing momentum burst.

Stock should be in extremely low momentum phase for anticipation .
It can be a shallow pullback or consolidation in established momentum phase.

To anticipate look for stock with extremely low volatility

A stock with low volatility in last 5 to 10 days is ideal candidate as part of a continuation setup.
Look for series of low range bars in last 5 to 10 days
Look for stocks with bollinger band squeeze.

Avoid Anticipation setups on extended stocks

First or second anticipation setup in established trend is best
Extended trends needs to be avoided for anticipation as failure is high on them

Look for early entry on anticipation candidates

Anticipating a breakout helps you get an early entry and can improve your per trade profits.
It also can lower your risk as your stop is closer.
It can help you profit from even smaller moves.
For that entry without waiting for breakout is best.

Anticipation requires more pre planning and effort than buying a breakout.

You need a process flow to do that.
The process should be efficient and done daily after the market close.
The suggested process flow is a template you can develop your own process.

Only 3 to 5 quality ideas should be tracked

"A" grade pre Momentum Burst setup should be your first priority
Once you have list of anticipation setups narrow them down to 1 to 5 for next day action.
Quality is more important than quantity

In order to find Bullish Anticipation setup use DT and TI 65 lists in Telechart

Double Trouble Scan

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

TI65

US Common stocks
avgc7/avgc65>1.05 and minv3.1>100000
Price % change Today between 1 to -1%

MDT Above 1.19

US Common stocks
c/avgc126>1.19 and minv3.1>100000
Price % change Today between 1 to -1%

After running these three scan merge them together as some stocks will be common.

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
This entire process once setup tales just 20 minutes daily. You can find 5 to 10 good set ups using this process daily. In good market conditions these setups can make 8 to 20% in just few days. So if you are serious about making money swing trading setup these scans and practice finding good setups. 
Anticipation Watchlist 
these are stocks i am watching for possible breakouts.
OPTT INST DXPE FLXN BWLD INGN ARDX NVRO PETS TBPH RTK OLLI LOCO TNET AIMT VAC PGND FDP ACIA YRCW VSAT SQ ITCI ISRG TWOU ANW BDC NSM ERII ZLTQ IPHI UIS DNB FCN SPNC ABCO ZBRA BID SALE CVLT SCSS OFG UNT PCLN BHE PODD SMG AWI KLXI NCI NUS SUPN SREV TPX EME CTB MIDD MHK ENLC PES MTZ YELP XPO FFIV MBFI STAR AZPN IRWD HTH LLL IFF WMGI CGNX PVH DXCM ECR DKS AWH URI LSCC LPI EXAS VAR EXTR AMKR MBI HRG RACE ENTG TPH PH CNX SWK FBHS PGRE TRGP CMI ARIA NTAP SWKS JBL HUN CIT QGEN EW BDX QEP HOLX BBY TRMB GRPN NAVI YNDX GNTX MXIM CERN ADI PAYX SLM MAS UAL NXPI YUM KKR MPC AAL MMM TWX UNP TXN CSX GLW AIG BSX QCOM HPQ FB MSFT JD BEL CX BSBR ERF NGVT

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