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%
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.
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14 comments:
Hi,
I love your site - keep it up please :)
What do you mean by "orderly pullback with no 4% b/d during the pullback or consolidation". Does it mean that there should be no candle that represents a move of 4% or more?
Also, when you say "not up 3 days in a row", how do you define a up day? Is it close to close or open to close?
Thanks so much!
Hi,
I love your site - keep it up please :)
What do you mean by "orderly pullback with no 4% b/d during the pullback or consolidation". Does it mean that there should be no candle that represents a move of 4% or more?
Also, when you say "not up 3 days in a row", how do you define a up day? Is it close to close or open to close?
Thanks so much!
Hi,
I love your blog - please keep it up :)
What do you mean by "not up 3 days in a row"? Does it mean there should be no candle that represents a move of 4% or more?
Also, when you say "not up 3 days in a row", how do you define a up day? Do you see it as a positive close-to-close or a positive open-to-close ?
Thanks so much!
Stock should not be up 3 days in a row as that indicates it is already in swing move. positive close to close
Thanks so much for your quick answer :) I realize I made a mistake in my first question. What I actually wanted to mean was :
What do you mean by "orderly pullback with no 4% b/d during the pullback or consolidation"? Does it mean there should be no candle that represents a move of 4% or more?
yes no 4% down day
Thanks again - Your blog is very insightful!
Hello, is the double trouble value c / min 2252 correct or should it be c / min252?
Thank you
Hello, is the double trouble value c / min 2252 correct or should it be c / min252?
Thank you
I do not know where you are getting that. Read the post
c/minl252>=1.8 and minv3.1>=100000
is correct value
hi sir, do u make these formulas in AFL (amibroker)
if not what does the formula mean
?
Could you please share the code for -
Price % change Today between 1 to -1%
Sir
I am a new reader of Ur blogI cant understand the abbreviation...Please expand or explain this "avgc7/avgc65>1.05 and minv3.1>100000"
Thanks in advance
It means 7 day Price MA/ 65 day price MA should be greater than 1.05 and volume > 100K
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