What is stocks in focus
Some of you have noticed the Stocks in Focus feature in sidebar and asked what it is. Stocks in focus in intra day list of opportunities. The stocks are from the 4% plus breakout scan.
The stocks essentially satisfy the Telechart condition of:
( 100 * (C - C1) / C1) >= 4 AND V >= 1000 AND V > V1
For non Telechart users, it means they are up 4% plus today, have volume greater than 100000 and volume today is greater than yesterday's volume.
Now the scan produces many candidates, but the stocks in focus are the one which I am investigating for taking a position sometime during the day or looking to add to existing position or they show some sector theme developing in market. For example clearly visible theme on Friday was China. Some out of them will eventually go in to the final end of day "Stocks in focus". The list will get updated through out the day and some stocks might get dropped as they might have reversal intra day. First update will be around 11 AM.
Typically I run the scan every hour and research selected stocks from it and if they meet my criteria of earnings or sales momentum, plus previous price action, I buy some of them during the day and add to the position during the day or next day.
The 4% scan mentioned above is a wonderful source of swing trading ideas and offers many clues on market. Sorting the candidates in it by sector tells you clearly the sector trends. Sorting it by 1 year growth in Telechart and looking at those without any values shows you IPO's with less than one year trading history that are attracting buying interest. Similarly the negative version of it shows you which stocks are experiencing selling pressure.
Stocks in focus is conceptually like IBD's "Stocks on the move".
The stocks essentially satisfy the Telechart condition of:
( 100 * (C - C1) / C1) >= 4 AND V >= 1000 AND V > V1
For non Telechart users, it means they are up 4% plus today, have volume greater than 100000 and volume today is greater than yesterday's volume.
Now the scan produces many candidates, but the stocks in focus are the one which I am investigating for taking a position sometime during the day or looking to add to existing position or they show some sector theme developing in market. For example clearly visible theme on Friday was China. Some out of them will eventually go in to the final end of day "Stocks in focus". The list will get updated through out the day and some stocks might get dropped as they might have reversal intra day. First update will be around 11 AM.
Typically I run the scan every hour and research selected stocks from it and if they meet my criteria of earnings or sales momentum, plus previous price action, I buy some of them during the day and add to the position during the day or next day.
The 4% scan mentioned above is a wonderful source of swing trading ideas and offers many clues on market. Sorting the candidates in it by sector tells you clearly the sector trends. Sorting it by 1 year growth in Telechart and looking at those without any values shows you IPO's with less than one year trading history that are attracting buying interest. Similarly the negative version of it shows you which stocks are experiencing selling pressure.
Stocks in focus is conceptually like IBD's "Stocks on the move".
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10 comments:
Hi Pradeep,
out of the methods you have in the blog, DoubleTrade, IB200, Earnings. What's the one that requires less trading to be statiscally profitable?.
I'm just trying to find a method compatible with my regular work.
Thanks.
Pradeep,
Is there a way to integrate earnings / episodic pivots in telecharts and use the information to sort candidates ?
Sorry, my mistake. I see the Stocks in Focus on the Side Bar now,sorry again
Semsons
IBD 200
Amit
What exactly do you want to do in Telechart. Episodic Pivots scans are done in TC2007.
Thanks Pradeep for the answer. Only problem is that I'm in Europe and I should buy the IBD online, expensive for testing and first steps.
Thanks
Semson
Try this alternative approach if you have Telechart
0.4 * (C * 100 / C65) + 0.2 * (C * 100 / C130) + 0.2 * (C * 100 / C195) + 0.2 * (C * 100 / C260)
Using this scan pick the top 5% stocks. Eliminate stocks with low volume and below 5.
Use this universe, you will get almost all IBD 200 candidates.
Then use same approach of buying breakouts.
For every method the PCFs are mentioned. Which particular PCF are you looking for.
PCF by themselves are not much of help unless there is context and logic. If you are looking to get lost on PCF jungle try
http://www.tradeon.com/tradeon/
You will find tonnes of formula for telechart.
And if you want more formulas try
http://finance.groups.yahoo.com/group/Telechart_TCNetUsers/
http://finance.groups.yahoo.com/group/Telechart2000_Users/
Pradeep,
Any idea why do you choose 4% as threshold for filtering the stock in focus? Why not 5% or 3%? Thanks.
Based on frequency of 1, 2, 3, 4, 5.....etc % move on past 100% movers of last 10 years
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