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Scanning for stocks to short (entering a downtrend or in a downtrend)
Since we have been in an uptrend until recently, I have developed several scans that look for stocks to buy. Now that we are in a downtrend, I want to develop some scans to look for stocks to short, something new to me.
I have tried several scans, most of them based on Stockcharts pre-defined scans, such as Bearish 50/200 MA cross, moved below lower Bollinger Band, 52 week low, etc. I also looked at several SCTR scans, and other bearish scans in Sample Scans, Gord's Greer Scan building blocks, etc. The biggest problem I found was that the results produced were too late, meaning the downward trend had already started days, if not weeks ago.
I decided to try a simple 50 SMA crossing over a 20 EMA, which produced the best results so far. Here is the scan:
[country is us] and
[type = stock] and
[Daily SMA(10,Daily Close) > 2] AND [Daily SMA(10,Daily close)<=11] and
[Daily SMA(20,Daily Volume) > 150000]
and [3 days ago daily SMA(50) x 3 days ago daily EMA (20)] ,
It works fine, BUT I only get 2 or 3 hits, which makes me wonder if my scan is correct. Any suggestions?