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A scan to spot strong buyer interest near 52 week lows
The recent Oracle jump made me curious about whether it was a Wyckoff accumulation.
It didn't appear to be, but, I did notice several consecutive days of strong buying in late April when the stock looked weak. I've seen this before in stocks that later perform well.
So here's a simple scan that picks up strong buying when a stock is weak enough to be trading near it's 52 week lows. Like most scans, it picks up some symbols that don't work out, but some have legs.
I haven't thoroughly researched this, and it is a bull market; almost anything will "work" in a bull market. But the logic behind it is, retail buyers generally don't buy weak stocks. They buy stocks already on the way up, or, stocks that are pulling back from new highs that look like a bargain. So that implies the buyers on weakness are "strong hands", i.e. knowledgeable institutions and funds, and several days of buying shows commitment to the story behind the stock, whatever it turns out to be. Professionals make mistakes, too, but not as many.
Run this for May 2, 2025. Oracle is just one of a number stocks that have done well since then.
// begin scan
[group is sp500] // or your choice, indexes, industries, market cap, etc.
// at some point in the last twenty days, price closed in the lowest 20 per cent of the one year range.
and [min(20, Fast Stoch %K(251,1))< 20]
// at some point in the last twenty days, there were at least 5 consecutive up closes
and [max(20, Streak Up(close)) > 4]
// end scan
That's it. Try it for other dates and see what it comes up with.
It didn't appear to be, but, I did notice several consecutive days of strong buying in late April when the stock looked weak. I've seen this before in stocks that later perform well.
So here's a simple scan that picks up strong buying when a stock is weak enough to be trading near it's 52 week lows. Like most scans, it picks up some symbols that don't work out, but some have legs.
I haven't thoroughly researched this, and it is a bull market; almost anything will "work" in a bull market. But the logic behind it is, retail buyers generally don't buy weak stocks. They buy stocks already on the way up, or, stocks that are pulling back from new highs that look like a bargain. So that implies the buyers on weakness are "strong hands", i.e. knowledgeable institutions and funds, and several days of buying shows commitment to the story behind the stock, whatever it turns out to be. Professionals make mistakes, too, but not as many.
Run this for May 2, 2025. Oracle is just one of a number stocks that have done well since then.
// begin scan
[group is sp500] // or your choice, indexes, industries, market cap, etc.
// at some point in the last twenty days, price closed in the lowest 20 per cent of the one year range.
and [min(20, Fast Stoch %K(251,1))< 20]
// at some point in the last twenty days, there were at least 5 consecutive up closes
and [max(20, Streak Up(close)) > 4]
// end scan
That's it. Try it for other dates and see what it comes up with.
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