scan for swing setup

azfar

Hi,
this is my first question, I need help in scanning the stock for the following setup.
I am interested in uptrend stocks for last 3 to 4 months and recently dropped for last 3 to 4 days. I am using keltners setup for trades
any help is appreciated
thanks

markd

Hi Azfar, there is probably more than one way to do this, but here's one way:

[group is sp500]
and [max(20, Slow Stoch %K (21,1)) > 80]
and [close < 1 day ago close]
and [yesterday's close < 2 days ago close]
and [2 days ago close < 3 days ago close]

the second line says, price was at the top 80% of it's 21 day range within the last 20 days. You can mess around with those parameters to get situations you like.

If you are looking for a specific pattern of closes, the lines below that should get what you asked for; you can extend it to a fourth or fifth, etc. day, too.

If you don't care about a specific pattern, and just want a general decline, you could substitute

and [min(5, Slow Stoch %K (21,1)) < 20]

that just says, within the last five days the close was in the lower 20% of it's 21 day range. Often, when the market is generally rising, the monthly low (21 day low), or somewhere near it, is a reversal area.

You can still use the Keltner channels for setups. Just have a chart style set up for that and apply it to the scan results. You should also have a chart style (it could be temporary) that verifies your scan results(so for this scan have a style that includes Slow Stoch (21,1), or whatever parameters you settle on for your version).

markd

Hi Azfar, you could also use Fast Stoch %K (21,1) or variations. It gives a set up (crossing 20) usually about 1 or sometimes 2 or 3 bars earlier. That may or may not be better depending on the market. But you wanted to use Keltners for signals anyway. Using Fast K just gives you an earlier heads up.

azfar

Mark,
thanks for your help let me try it
here is what i came up with
but not getting uptrend for last few months

[type = stock] AND [country = US]and [exchange = nasdaq] or [exchange = nyse] AND [Daily SMA(10,Daily Volume) > 200000] AND [Yesterday's Daily Close < 2 days ago Daily Close] AND [Yesterday's Daily Close < Yesterday's Daily Lower Kelt Chan(20,2.0,10)] AND [Daily Close >= Daily Lower Kelt Chan(20,2.0,10)] AND [2 days ago Daily Close < 3 days ago Daily Close] and [close > 1.00] and [close < 10.00] and [today's volume > yesterday's volume]

markd

Another way to test for an upward trend would be to compare intermediate term MA values - e.g. is the 63MA today > 63MA a month ago, or two or three months ago.

Mark_L

Mark D, Big THANK YOU for the advice. I have a scan that basically tests for uptrend by using 50 EMA above 200 EMA, 20 EMA above the 50, close above the 20, and positive daily Aroon crossover. But it was giving me signals 2-3 days too late. Added in the daily high below the previous daily high going back three days, and got rid of the Aroon. Viola! Will keep fine-tuning it. Azfar, you may want to try something similar. I also scan for SCTR's above 75 and average daily volume over 500,000.

markd

Thanks, Mark_L, glad that's working out for you. I think azfar gets credit for the idea of looking for a specific pattern - I like looking for %K below 20 situations because it's less restrictive about pattern, but maybe specific is better. Happy trading!