Scanner for single day massive breakout

affolsa1

I wonder whether or not there is a predefined or custom scanner available which gives a hint on a single day massive breakout like with ADEP between Sep 15/16 2015?

markd

If you mean before the fact, no.

That looks like a buyout. That can happen on poorly performing stocks or good ones. There is no one pattern that foretells it.

However, if you are very patient, you might be able to put together a list where significant price advances are more likely. Big jumps like that are usually preceding buy a buying campaign, which you can spot on the daily charts over time. Take a look at May and June 2015 for ADEP. You will see there were a couple of really high volume bars, and also a solid two weeks of lower volume up bars. Then there was another solid week in September, just before the breakout.

So, you could put together a couple of scans and put the results in a list. One scan might be for the highest volume in a month, or a quarter. Another might be five, or seven or eight consecutive up closes. Then you would watch those stocks for how they behave around support and resistance - if they break support, the should recover quickly. When they jump above resistance and don't fall back below it - compare Sep 8-14 to the highs in July and August - then they could be ready to go.

Of course, a lot of stocks create similar patterns and there is no breakout, or the advance is modest, or the accumulation falls apart. That's just the way it is.

affolsa1

Thanks for your answer.

That's what i thought. Usually there's a positive story behind a breakout.
However i wrote a larger volume based scan which should cover your suggestions.

The actual output was KRNY and HMTV. On the daily chart view, it looks like they are in a consolidation phase after a short breakout months before. During consolidation they both came back once they touched the support line. On Friday, they both have broken the resistance line slightly so i will watch them closely over the next few days whether they will breakout or not.

markd

@affolsa1 Those both look pretty interesting.

affolsa1

At least for KRNY, solid estimate revisions are not yet reflected in its share price. Let's see which one will breakout first...