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I'm new to the idea of stock trading. I believe that Position Trading would be the most suitable style for me at this time. What criteria/formula would you suggest for this trading style when performing a scan?
Probably the easiest place to start is moving average crossovers. These are pretty adaptable to any time frame you might like to trade in. If you want to position trade - which I take to mean hold for a few weeks to a few months, then you would research longer term MAs or EMAs, like 50 crossing 200. Or you could look at 5 or 10 crossing 50. Shorter MAs will give you more hits. You want to find stocks that have a history of trending and some regularity in their price patterns. Generally, these are the more mature, higher priced institutional stocks in the indexes, like SP500, although you can also find them in the SP400 and SP600.
Another approach might be using Stochastics (probably Slow or Full). For this you would first determine that the stock is in an up trend (price above the 200 MA, for instance), then you would look for %K to cross under 20 and then either back above 20, or above %D.
There are many more approaches. Maybe some others will chime in with their suggestions.
[type = stock] AND [Daily SMA(20,Daily Volume) > 40000]
and [exchange is TSX]
and [Uptrend is true]
and [monthly RSI(14) x 70]
RANK BY [monthly rsi(14)]
and look at the monthly charts of the scan results.
You can use any exchange.
You can also try [weekly RSI(14) x 70] and look at the weekly charts.