How I generate my breakout anticipation watchlist

August 14, 2014

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. 

14 comments :

  1. UnknownFeb 8, 2017, 4:48:00 PM

    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!

    ReplyDelete
  2. UnknownFeb 8, 2017, 4:49:00 PM

    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!

    ReplyDelete
  3. UnknownFeb 8, 2017, 4:52:00 PM

    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!

    ReplyDelete
  4. Pradeep BondeFeb 8, 2017, 4:55:00 PM

    Stock should not be up 3 days in a row as that indicates it is already in swing move. positive close to close

    ReplyDelete
  5. UnknownFeb 8, 2017, 4:59:00 PM

    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?

    ReplyDelete
  6. Pradeep BondeFeb 8, 2017, 5:00:00 PM

    yes no 4% down day

    ReplyDelete
  7. UnknownFeb 8, 2017, 5:03:00 PM

    Thanks again - Your blog is very insightful!

    ReplyDelete
  8. gawdarFeb 25, 2020, 9:29:00 AM

    Hello, is the double trouble value c / min 2252 correct or should it be c / min252?
    Thank you

    ReplyDelete
  9. gawdarFeb 25, 2020, 9:30:00 AM

    Hello, is the double trouble value c / min 2252 correct or should it be c / min252?
    Thank you

    ReplyDelete
  10. Pradeep BondeFeb 25, 2020, 9:40:00 AM

    I do not know where you are getting that. Read the post

    c/minl252>=1.8 and minv3.1>=100000

    is correct value

    ReplyDelete
  11. peter becksOct 14, 2020, 4:35:00 AM

    hi sir, do u make these formulas in AFL (amibroker)
    if not what does the formula mean
    ?

    ReplyDelete
  12. Love KhuranaJun 3, 2021, 5:59:00 AM

    Could you please share the code for -
    Price % change Today between 1 to -1%

    ReplyDelete
  13. kasiDec 10, 2023, 10:08:00 PM

    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

    ReplyDelete
  14. secondoption15Feb 6, 2024, 12:21:00 AM

    It means 7 day Price MA/ 65 day price MA should be greater than 1.05 and volume > 100K

    ReplyDelete

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