penny stock scan

markypoo

I need to write a scan for close above the 50 ma, close in top 25 % of the days range, and increasing volume for the day
I need a short scan for the same but close in bottom 25% of the days range, anyone can help I would greatly appreciate it , I WOULD REALLY LIKE ANY TRADING HELP I COULD GET ALSO , MARK IN ALABAMA

gord

Using the advanced scan engine, you could start with something like this. Adjust the settings as desired.

[type = Stock]
and [country is US]
and [ close > 0.01 ] and [ close < 1 ]
and [ close > low + [Range * 0.75] ]
and [ close > SMA(50, close) ]
and [ volume > SMA(20, volume) * 1.5]

markd

Are you sure you want to trade penny stocks? Maybe you know something I don't, but a quick review of penny chart stocks from this scan is not encouraging:

[type = stock]
and [country = US]
and [close < 1]
and [group is MaterialsSector]

It shows a lot of stuff that would be impossible to trade with conventional technical analysis tools.

The bid/asks are really wide (meaning for example, the ask might be 10 cents, the bid 8 cents; so you would have to make 20% (wait for the bid to get to 10 cents) just to break EVEN).

The volume is often really sparse (that is, trades don't happen very often during the day).

Because they are so low priced, it doesn't take much money to manipulate them. Have you heard of "pump and dump"? Prices get manipulated up (the manipulators buy and sell to themselves to paint the tape) to draw you in, then they dump the stock on you. Now who's going to buy from you? Not them. They already have their money.

Most penny stocks do NOT have to follow SEC rules about reporting their finances, so you cannot rely on published information, if there is any.

Just my opinion, but if you have a small stake to start, try LISTED low price stocks with regular volume and daily trading, maybe 2 to 10 dollars, on a regulated exchange with regulated market makers. Your first job as a trader is NOT to make profits - your first job is to avoid losses. If you lose your stake, you can't play anymore.

gord

Great post and advice @markd