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Worden Discussion Forum » General Discussions » Stock and Market Talk » Hi, I'm looking for the most efficient way to sift through stocks

Hi, I'm looking for the most efficient way to sift through stocks Topic Rating:
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jesters
Posted : Tuesday, May 10, 2005 10:40:18 PM
Registered User
Joined: 4/18/2005
Posts: 3
 Sifting through 7000+ stocks is cumbersone at times. I am looking for an efficient way to identify the ones that are not only resilient but are reverant.

I'm a short term trader, but I don't short stocks and your streaming TCNET is alluring to me. However, I'm still learning through some of your analysis and CD's but its difficult to identify what sector the investments will be headed next.

Screens are pretty simple to understand, but when it comes to formula's I'm lost. So, I would like to learn them as I believe they are important.

Finally, I'm trying to identify what money stream is as well as ADX. Accumulation and Depreciation. When is it beneficial to buy and how is it diagramed.

Highest Regards,
Jedi
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Bruce_L
Posted : Wednesday, May 11, 2005 10:01:34 AM


Worden Trainer

Joined: 10/7/2004
Posts: 65,138
 The main thrust of your post, how to sift through 7000+ stocks, is pretty subjective, can vary significantly from person to person, and really isn’t the type of question the trainers can answer. I’m moving this topic to Stock and Market Talk where you may get some responses on how other traders do so.

You also had some questions about some specific indicators and how to write Personal Criteria Formulas. I’m providing some links to information on these topics, but moving this topic means you are more likely to get some advice from other traders as well.

The Online Help Files have some basic information on Average Directional Movement (ADX). The information in the Online Help Files about MoneyStream is more extensive:

MoneyStream
Evolution of the Cumulative MoneyStream and Balance of Power
The Old and New Naivete
Tape Reading in the Sleep Fifties
One Great Leap to the Seventies
Tick Volume is Now a Zombie Named Money Flow
One More Attempt at Not One -- But Two -- Holy Grails
BOPping Around TeleChart
Finally, a Holy Grail (but with fewer holes than most holy grails)
What Mr. BOP Has to Say
Using The MoneyStream and BOP Together
A Tip about Large Company Stocks
Example - Home Depot Inc. (HD)

We also sell two MoneyStream videos, Interpreting MoneyStream® and Scanning and Sorting With MoneyStream® on our Books & Videos page. MoneyStream is a frequent topic in the Strategy Videos, Notes and Reports forum. There is a lot of information in the forums about writing Personal Criteria Formulas. You will also want to read these entries in Online TeleChart Help:

Personal Criteria - Introduction
Creating Personal Criteria
Personal Criteria Language
Personal Criteria Language Function List
Formula Clipboard
Formula Examples

Many of the free online videos utilize Personal Criteria Formulas, but I would probably start with the following:

How to create a Personal Criteria Forumula (PCF)
-Bruce
Personal Criteria Formulas
TC2000 Support Articles
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ejr39
Posted : Wednesday, May 11, 2005 6:57:33 PM
Registered User
Joined: 1/28/2005
Posts: 125
 armenian;

> I'm trying to identify what money stream is

From the TeleChart Help Topics Index, select MoneyStream
. MoneyStream has “… much the same objectives as OBV …

What is OBV (On-Balance-Volume)?

From "Technical Analysis from A to Z" by Steven Achelis
… On Balance Volume ("OBV") is a momentum indicator
that relates volume to price change.
… On Balance Volume is a running (cummulative) total of
volume. It shows if volume is flowing into or out of a
security.

From the TeleChart Help Topics Contents
. select: Charting |Indicators in TeleChart | Custom Cumulative
the example is OBV
Up Condition: C>C1
Down Condition: C<C1
Value to Add/Subtract: V

Again, from the TeleChart Help Topics Index, select MoneyStream
. MoneyStream: “ The high, low, close and daily range are
related to volume in a unique and proprietary way.”

So, if one knows that “unique and proprietary way”, one would
simply substitutes (H,L,C and (H-L)) for the C in the cumulative
OBV example
i.e.
Up Condition: (H,L,C and(H-L))>(H1,L1,C1 and(H1-L1))
Down Condition: (H,L,C and(H-L))<(H1,L1,C1 and(H1-L1))
Value to Add/Subtract: V

Suggestion:
Thoroughly understand OBV’s use and the interpretations.
. Which OBV variation (including MoneyStream) best suits your style
and timeframe?

How does one visually compare OBV, MS, and other indicators?
Hint: convert all indicators to a common scale – percent.
. Review the pre-programmed MoneyStream vs. Price formulas.
… For divergence studies, interpretation:
If MS vs. Price is positive MS is leading price
If MS vs. price is close then they are moving in sync
If MS vs. price is negative then MS is lagging price


> … as well as ADX.

ADX is a TREND STRENGTH indicator!
. Directional Movement, +DI and –DI, indicates the direction of
the trend.

Suggestion:
Instead of guessing, search the web for educational resources
that will broaden your understanding of each indicator

"Technical Analysis from A to Z" by Steven Achelis
is available online, use your internet browser to search for:
Technical Analysis from A to Z
. From the searched list, select the MarketScreen resource.

ejr
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ejr39
Posted : Friday, May 13, 2005 2:20:21 PM
Registered User
Joined: 1/28/2005
Posts: 125
 > Sifting through 7000+ stocks is cumbersome…
> I am looking for an efficient way to identify stocks
(that I’d actually buy)

You stated that your style is: short-term trader

> …but I don't short stocks

So, you are a short-term trend trader.

There are 3 Primary Indicators found on every chart
1.) Price
2.) Volume (Liquidity)
3.) Trend:
. . . Uptrend
. . . Downtrend
. . . Trendless (basing / consolidating)

Initially, KISS (Keep It Simple and Succinct)
1.) What is YOUR price zone?
. . . Find YOUR price comfort zone. (If the thought
of buying a single share of stock at $75 is stressful,
then move back to a zone which causes less stress.)
. . . Find price zones of predictability. (IBD
typically doesn’t rate stocks under $10; that’s a
clue that ‘cheaper’ stocks are less predictable.)

2.) Volume (Liquidity)
. . . As a short-term trader, avoid low volume stocks!
(Look for liquidity. Otherwise a short-term trade can
tie up resources in an unprofitable, long-term investment.)

3.) Trend
. . . How are YOU identifying the established trend?
(Rule of Thumb: Use moving averages for trending
stocks; oscillators for trendless stocks.)

= = = = =
Now, to setup a WEEKLY pre-qualified Stocks WatchList
(Note: ALWAYS buy items from the pre-qualified stocks
watchlist; everything else is an impulse purchase.)

What are the ‘rules’ for this sample WatchList
1.) Price comfort zone: $10 to $50
2.) Liquidity: average daily volume > 200,000 shares
3.) Established Uptrend: minimum 20-day
. . . preferably as part of a longer term uptrend such
as a meteor or fixed star.


PCF

PCF Name: #1 Volume(20)
(AVGV20)

EasyScan
In a new or existing EasyScan:
WatchList to Scan: All Stocks
[Add Condition]s
. Price Per Share-H
_ _ _ adjust Range Selector VALUE … 10 to 50
. #1 Volume(20)
_ _ _ adjust Range Selector VALUE … 2000 to Max
. Price Percent Change 1 month
_ _ _ adjust Range Selector VALUE … ? to MAX
_ _ _ ? adjust until the “Count” is about 100
Save
IF this is a new EasyScan, name: Weekly ESWL
Scan Charts

Notes:
This is YOUR WatchList,
. adjust the Price and Volume Range Selector values to fit
YOUR style, YOUR strategy, and the market
. adjust the Price Percent Change Range Selector value to
increase or decrease count.
. add any other conditions that narrow your focus to only those
stocks YOU would actually buy such as capitalization, exchanges,
optionable, etc.

COPY the "Weekly ESWL” to a manually created WatchList;
name and date the manually created WatchList i.e.
"Prequalified Stocks (08/27)"

WEEKLY, after the Saturday Noon ET data download,
. update PCFs
. adjust the "Weekly ESWL" Range Selectors
. remove ALL Symbols from the "Prequalified Stocks (old date)" WatchList
. rename the "Prequalified Stocks (old date)" WatchList with the current
Market Close date i.e. Rename WatchList: Prequalified Stocks (09/03)
. COPY the updated "Weekly ESWL" into the empty, renamed
"Prequalified Stocks (new dated)" WatchList

Last, review the "Prequalified Stocks (new date)" WatchList
. Flag and remove any items that YOU wouldn't buy, for example:
Closed End Funds, Utilities, ADRs, etc.

This part of the process takes about 15-minutes once each week.

= = = = =
Suggested Chart setup:
From the TeleChart 2005 Tools dropdown menu,
. select: System Settings
. . select: Chart Templates
. . . under Save Options,
_ _ _ click: "Ask me … to save my changes"
_ _ _ check: Save Zoom and Time Frame to Templates
_ _ _ check: Save Chart Scaling to Templates
. . select: Chart Display Options
. . . under Chart
_ _ _ select Grid Line Style: Solid
_ _ _ UNCHECK: White Background
_ _ _ check: Use Classic TeleChart Scaling
. . . under Markers\Trendlines
_ _ _ check: WL Tracking
_ _ _ UNCHECK: all other tracking markers

From the TeleChart 2005 Chart Template dropdown menu,
. select: Chart Scaling
. . From the Chart Scaling popup window, click:
. . . Auto Scaling: Arithmetic if 2-days/bar or less

Chart Settings
Zoom = 5 or 6
Daily Chart

Edit Chart Template #n
Top Window
. Prices – Open Bar Chart
_ _ _ Draw Color: Green for Money
. . Linear Regression – 20 bar period
. . Moving Average – 4 bars – Simple (Whipsaw indicator)
_ _ _ Draw Color: White
_ _ _ Draw Style: Dot
. . Moving Average – 10 bars – Simple
_ _ _ Draw Color: Green
_ _ _ Draw Style: Dot
. . Moving Average – 20 bars – Exponential
_ _ _ Draw Color: Yellow
_ _ _ Draw Style: Dot
. . Moving Average – 30 bars – Exponential
_ _ _ Draw Color: Red
_ _ _ Draw Style: Dot

Middle Window
. Volume Bars
_ _ _ Rising Color: Off-white
_ _ _ Falling Color: Off-white
. . Moving Average – 20 bars – Simple

Bottom Window
. Custom Indicator Settings (Price as Percent)
_ _ _ Draw Color: Green
_ _ _ Draw Style: Normal
_ _ _ UNCheck: Visible
_ _ _ UNCheck: Center Zero Line
_ _ _ UNCheck: Plot using price scale
_ _ _ Smoothing Average: 1 Simple
Indicator Formula
((C-MIN(C,5))/(.0001+(MAX(C,5)-MIN(C,5)))*100)
. . Linear Regression – 5 bars
_ _ _ Draw Color: Green

. Custom Indicator Settings (Volume as Percent)
_ _ _ Draw Color: White
_ _ _ Draw Style: Normal
_ _ _ UNCheck: Visible
_ _ _ UNCheck: Center Zero Line
_ _ _ UNCheck: Plot using price scale
_ _ _ Smoothing Average: 1 Simple
Indicator Formula
((V-MIN(V,5))/(.0001+(MAX(V,5)-MIN(V,5)))*100)
. . Linear Regression – 5 bars
_ _ _ Draw Color: Off-white (same as Volume bars)

Notes:
Top Window
* The uptrending Moving Average Stack in proper order:
10-dma (green) > 20-EMA (yellow) > 30-EMA (red)
(parameters from Dave Landry's BowTie strategy)

Stop Light interpretation of the moving average stack:
_ _ The Price is above or crosses above the green line
(10-dma), GO; if the Price falls below the green line
(10-dma), reevaluate the trade.
_ _ The yellow line (20-EMA) is CAUTION; if the Price LOW
drops below the yellow line, be prepared to exit the
trade depending upon the strategy or pattern one is
playing.
_ _The red line (30-EMA) is STOP; depending upon the
strategy or pattern one is playing, the trade is over!
. . Whipsaw line (4-dma) is an EARLY WARNING line.

The Moving Average Stack in proper order PCF is:
((AVGC10>XAVGC20) AND (XAVGC20>XAVGC30))

* Linear Regression Line (1-trading month) is a visual aid
_ _ from left to right, the line points the trend's direction

Middle Window
. Volume bar colors; to avoid distraction, use a neutral
color. After all, the rising color is C>C1; the falling
color is C<C1.

Bottom Window
. Compares the Primary Indicators, Price and Volume, through
their 5 bar (1 trading week) Linear Regression lines
Rough Interpretation:
. If both lines are pointing UP: good
. If both lines are pointing DOWN: bad
. If one line is pointing up and the other down: divergence!

*** IMPORTANT ***
The “(.0001+ ” after the divide math operator avoids the
dreaded “Divide by Zero” error when using Custom Indicators.

= = = = =
Now build PCF Filters to find profitable patterns WHEN
or IF the trend continues

Candlestick continuation patterns:
. Side-by-side White lines
. Separating Lines
. Mat Hold
. On Neck Line
. In Neck Line
. Thrusting Line
. etc.

Pullback strategies:
. 1-2-3-4 Strategy
. Trend Knockout (TKO)
. Persistent Pullback
. BigDog Bounce
. Swing Lows
. etc.

Breakout strategies:
. Thrust Breakout
. Breakout Lap
. Breakout Gap
. etc.

Reminders:
. Use moving averages with trending stocks; oscillators
only if included in a specific strategy’s instructions
. ALWAYS buy items from the pre-qualified stocks
watchlist; everything else is an impulse purchase.
. ALWAYS Simtrade a strategy before actually trading it.

ejr
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mmgopc
Posted : Sunday, May 15, 2005 9:55:03 AM
Registered User
Joined: 1/14/2005
Posts: 3
To ejr,
I don't understand what action is needed for the following:
Under Stop Light, "GO".
Thanks, the charts look interesting.
Marv
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ejr39
Posted : Sunday, May 15, 2005 1:11:54 PM
Registered User
Joined: 1/28/2005
Posts: 125
 mmgopc;

GO simply means the item is a buy IF or WHEN your
personal pattern / strategy filters and rules are
met.

Look at the weekly charts for items in a strong
UPtrend i.e. the meteors and the fixed stars.

Create a "stable" or WatchList of these predicable,
uptrending items, maybe 10 or 12.

Review each item’s fundamentals and recent news.
Morning Star is an excellent resource.

After reviewing the fundamentals and news, flag
and remove any items from the “stable” that appear
to be faltering.

Maintain a small “stable” of meteors and fixed
stars. After a couple of months of observation,
you’ll find each item has a rhythm.

Suggestion:
Play the short-term patterns (like pullbacks)
found on the long-term trend.

ejr
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ejr39
Posted : Monday, May 16, 2005 5:57:10 PM
Registered User
Joined: 1/28/2005
Posts: 125
 Stalking Runaway Stocks with an EasyScan

Definitions
Meteor: the stock that blasts off; reaches extreme
overvaluation; and falls back into obscurity.
Meteors are the `fad' stocks that explode up 300%
or more in a 1 to 3 year period, then collapse.

Fixed Star: Starts the same way as a meteor but
does not become extremely overvalued. These stocks
sustain steady price growth for years, some more
than a decade.


Runaway Stocks EasyScan
WatchList to Scan: All Stocks
. [Add Condition]s
. Price Per Share
_ _ _ adjust Range Selector VALUE … 10 to 50
. Price – 1-Year Range
_ _ _ adjust Range Selector MARKET RANK … 75 to Max
. Price – 3-Month Range
_ _ _ adjust Range Selector MARKET RANK … 75 to Max
. Price Percent Change 26-Week
_ _ _ adjust Range Selector VALUE … 1 to Max
. Volume 90-day
_ _ _ adjust Range Selector VALUE … 2000 to Max

= = = = =

READ THE CHARTS: visually confirm the trend is UP!

Suggested Chart setup:
From the TeleChart 2005 Tools dropdown menu,
. select: System Settings
. . select: Chart Templates
. . . under Save Options,
_ _ _ click: "Ask me … to save my changes"
_ _ _ check: Save Zoom and Time Frame to Templates
_ _ _ check: Save Chart Scaling to Templates
. . select: Chart Display Options
. . . under Chart
_ _ _ select Grid Line Style: Solid
_ _ _ UNCHECK: White Background
_ _ _ check: Use Classic TeleChart Scaling
. . . under Markers\Trendlines
_ _ _ check: WL Tracking
_ _ _ UNCHECK: all other tracking markers

From the TeleChart 2005 Chart Template dropdown menu,
. select: Chart Scaling
. . From the Chart Scaling popup window, click:
. . . Auto Scaling: Arithmetic if 2-days/bar or less

Chart Settings
Zoom = 6
Weekly Chart

Edit Chart Template #n
Top Window
. Prices - Open bar Chart
. . Linear Regression – 52 bar period (1-trading year)
. . Linear Regression – 26-bar period (6-trading months)
. . Linear Regression – 13 bar period (3-trading months)
. . Linear Regression – 4 bar period (1-trading month)

Note:
The item is in a Runaway uptrend if ALL Linear Regression
Lines, from left to right, point toward the upper right
corner of the chart window.

From the May 13, 2005 EOD data, the following items appear
to be Meteors and / or Fixed Stars (i.e. Runaway stocks).
ENWV
CMTL
LCAV
FTO
KMOG
UHCO
AFFX
AVL
VMSI
TZIX
ITRI
HCSG

This is a starter list. Review ALL the charts found by the
EasyScan for more candidates. Flag and move YOUR selections
to a manually created Runaway Stable WatchList.

The rest is up to you! It’ll take time and experience to
learn which stocks persist and / or follow through.

You’ll need to do the research for fundamentals and news,
plus study the daily charts for recurring patterns and /
or strategies to use with each stock.

ejr
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