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stock screening

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josht

Posted : Friday, September 4, 2009 8:10:05 PM

Registered User
Joined: 9/4/2009
Posts: 3

I need help in preparing a good stock screening system that I can use every night to screen for stocks. I am currently using telechart for my charting and zacks for my stock screening, I am not happy with Zacks priority ranking system. I am a platinum TeleChart customer and after speaking to one of your representatives today I feel that stock finder would be the company to fill my needs for proper stock screening every night. I am a platinum member so besides telechart I also havge access to stock finder. I am currently paper trading my system of buying and selling options on stocks.This method was taught to me by one of the best options traders.I wrote a book on this method for beginners that have no experience in the stock or options markets and who want to learn how to be successful at it without having to pay thousands of dollars for seminars and expensive software systems. The book is about 175 pages and will show the reader a simple to understand step-by- step method that even a ninth grade student would be able to understand and apply and become financially independent, the book will retail for $28.88 and will be marketed worldwide sometime in January, February, or March of next year.I highly recommended TeleChart as the leading company in its field, for the reader to sign up and use telecharts service.Mr. Worden will be getting alot of new customers from my book when they read about the positive things I said about TeleChart .If Stockfinder can fill my needs for stock screening, then I will make the change in my book and recommend Stockfinder to use for stock screening.The Method I use is to look for stocks that are CURRENTLY in an Uptrend or a Downtrend.I use a weekly chart to determine if the stock is in a current trend up or down.The indicators I look at on the weekly chart to determine a trend are the following: 9-18-27 week exponential moving averages paying closer attention to what the 9 week EMA is doing then I have theMACD- HISTOGRAM chart with the MACD fast and slow lines(10 WEEK FAST LINE AND 22 WEEK SLOW LINE), parameters on MACD chart are 10-22-8 week settings.All MACD lines and bars are exponential. Then I look at the latest MACD histogram bar to see if there is a meaningful difference up or down (depending on the direction of the 9 week EMA line and the MACD 10 week fast line) , then I look at the volume bars, I also have a 3 week simple moving average line overlaid over the volume bars to look at what the volume has been doing over the last 3 weeks.Then I check the OHLC price bars,I then analyze if I have a trend.If I have an uptrend or downtrend I then go to the daily chart and I look at th daily slow stochastic chart with the 2 lines.(Paramater settings of 5 day- 3 day- 3day.) I am looking for the 2 lines to contradict my weekly trend, hoping that it is a temporary correction, then I look for a certain trigger the next day which if reached would be the ideal time to purchase the option on that stock.The problem in using Zacks co for their rating service is each night I screen for stocks that are in a current trend when I punch in that I want a 1 or 2 rated stock,Zacks says that their 1 or 2 rated stocks in their opinion will be going up in price over the next 3 to 6 months and when I look at those stocks each night I hardly ever find a 1 or 2 rated stock in an uptrend, its usually a downtrend and I am getting mixed signals from my indicators of 9 weekEMA and MACD fast line and MACD histogram bars, they hardly ever all agree on the same direction of the trend. On the flip side If when Zacks gives me a 4 or 5 ranking on a stock they are saying in their opinion that the stock will be going down in price over the next 3 to 6 months, I never hardly find a CURRENT downtrend on those stocks and also am receiving mixed signals from my parameters.I need to know what the stocks are CURRENTLY doing, not what they could be doing 3 to 6months from now.When I stock screen each night the parameters I use are the following:Stocks that are currently trading at $30.00 per share and higher, stocks that are averaging 500000(five hundred thousand) shares traded daily over the last 20 days, not a total of 500000shares over the last 20 days but averaging trading 500000 shares each day over the last 20 days.Next only stocks that are optionable, and finally I need somehow to know what stocks are CURRENTLY in an uptrend or downtrend if possible.Now besides these screening tools if you can recommend any other tools I should be using that would benefit my screening system please add them and explain what I need to know about them.Keep in mind I am looking for stocks that are CURRENTLY trending where I can make my money on the options in a matter of 2,3,5 days , the only way to stay in longer of course is if the stock keeps going in the direction you picked.Take your time ,I have a feeling that you can give me the stock screening program I am looking for. Also when I spoke to your rep today I explained to her that each night I have been screening on the weekly chart, the current weekly bar just about on every stock was showing an open price,the notch to the left of the price bar would be at the very top of the bar and the closing price, the notch to the right of the bar would just about always be in the lower half of the bar.This is virtually impossible , yet it is showing this on hundreds of stocks that I am screening. Under the last bar it is always showing a blue little symbol like an almost triangle shape, I don't know if that has anything to do with it.Keep in mind I am new with a computer so if you can walk me through the stock screening process that you recommend in qan easy to understand way I would greatly appreciate it.Thank you for your time and consideration. Eddie Tunick E- Mail- (email removed by moderator). Looking forward to hearin from you next week. Have a happy labor day weekend.

Bruce_L

Posted : Friday, September 11, 2009 5:04:22 PM

Worden Trainer

Joined: 10/7/2004
Posts: 65,138

QUOTE (josht)

The Method I use is to look for stocks that are CURRENTLY in an Uptrend or a Downtrend. I use a weekly chart to determine if the stock is in a current trend up or down. The indicators I look at on the weekly chart to determine a trend are the following: 9-18-27 week exponential moving averages paying closer attention to what the 9 week EMA is doing

You can Plot this in StockFinder Indicator in StockFinder by selecting Add Indicator | Select... | MACD | OK and then adjusting the settings so to have the appropriate Moving Average Periods and Average Types. It should be noted that the Weekly Bars in TeleChart are based on rolling 5-Trading Day periods while the Weekly Bars in StockFinder are based on calender weeks. You may wish to use a Time Frame of 5-Day instead of 1-Week if you want to emulate the Weekly MACD in TeleChart as closely as possible.

QUOTE (josht)

then I have theMACD- HISTOGRAM chart with the MACD fast and slow lines(10 WEEK FAST LINE AND 22 WEEK SLOW LINE), parameters on MACD chart are 10-22-8 week settings.All MACD lines and bars are exponential.

You can Plot this in StockFinder Indicator in StockFinder by selecting Add Indicator | Select... | MACD Histogram | OK and then adjusting the settings so to have the appropriate Moving Average Periods and Average Types. The same caveats apply to the Time Frame in this case.

QUOTE (josht)

Then I look at the latest MACD histogram bar to see if there is a meaningful difference up or down (depending on the direction of the 9 week EMA line and the MACD 10 week fast line) , then I look at the volume bars, I also have a 3 week simple moving average line overlaid over the volume bars to look at what the volume has been doing over the last 3 weeks. Then I check the OHLC price bars,I then analyze if I have a trend. If I have an uptrend or downtrend I then go to the daily chart and I look at th daily slow stochastic chart with the 2 lines.(Paramater settings of 5 day- 3 day- 3day.) I am looking for the 2 lines to contradict my weekly trend, hoping that it is a temporary correction, then I look for a certain trigger the next day which if reached would be the ideal time to purchase the option on that stock.

You can create Rules in StockFinder for Moving Up or Moving Down by right-clicking on the Indicator and selecting Create Rule (probably Moving Up or Moving Down). The specifics of the Rules depend on the exact conditions desired. We really can't provide a lot more details on how to set up the Rules without an unambiguous objective definition of your conditions. An "I'll know it when I see it" type definition is not generally good enough to develop Rules that will find what you want.

QUOTE (josht)

The problem in using Zacks co for their rating service is each night I screen for stocks that are in a current trend when I punch in that I want a 1 or 2 rated stock,Zacks says that their 1 or 2 rated stocks in their opinion will be going up in price over the next 3 to 6 months and when I look at those stocks each night I hardly ever find a 1 or 2 rated stock in an uptrend, its usually a downtrend and I am getting mixed signals from my indicators of 9 weekEMA and MACD fast line and MACD histogram bars, they hardly ever all agree on the same direction of the trend. On the flip side If when Zacks gives me a 4 or 5 ranking on a stock they are saying in their opinion that the stock will be going down in price over the next 3 to 6 months, I never hardly find a CURRENT downtrend on those stocks and also am receiving mixed signals from my parameters.I need to know what the stocks are CURRENTLY doing, not what they could be doing 3 to 6months from now.

This would seem to indicate that Zacks uses different criteria for identifying quality stocks than you do.

QUOTE (josht)

When I stock screen each night the parameters I use are the following:Stocks that are currently trading at $30.00 per share and higher, stocks that are averaging 500000(five hundred thousand) shares traded daily over the last 20 days, not a total of 500000shares over the last 20 days but averaging trading 500000 shares each day over the last 20 days.

You can right-click on Price History and select Create Rule | Greater Than Value: 30 to create the first Rule and right-click on a 20-Period Simple Moving Average applied to Volume and select Create Rule | Greater Than Value: 5000 to create the second Rule (Volume is reported by StockFinder in blocks of 100 Shares). You can combine the Rules by Dragging and Dropping them onto each other and selecting Create New Combo Rule.

QUOTE (josht)

Next only stocks that are optionable...

There is on Optionable Stocks Watchlist that you can use as the basis of any Scans you develop.

QUOTE (josht)

...and finally I need somehow to know what stocks are CURRENTLY in an uptrend or downtrend if possible.

That would depend on your specific unambiguous objective definitons of uptrend and downtrend.

QUOTE (josht)

Now besides these screening tools if you can recommend any other tools I should be using that would benefit my screening system please add them and explain what I need to know about them.

I really can't make any recommendations beyond TeleChart, StockFinder and FreeStockCharts.com.

QUOTE (josht)

Keep in mind I am looking for stocks that are CURRENTLY trending where I can make my money on the options in a matter of 2,3,5 days , the only way to stay in longer of course is if the stock keeps going in the direction you picked.

The trainers can't give setting, interpretation or investment advice.

QUOTE (josht)

Take your time ,I have a feeling that you can give me the stock screening program I am looking for. Also when I spoke to your rep today I explained to her that each night I have been screening on the weekly chart, the current weekly bar just about on every stock was showing an open price,the notch to the left of the price bar would be at the very top of the bar and the closing price, the notch to the right of the bar would just about always be in the lower half of the bar.This is virtually impossible , yet it is showing this on hundreds of stocks that I am screening. Under the last bar it is always showing a blue little symbol like an almost triangle shape, I don't know if that has anything to do with it.

The Bars you appear to be describing are just Bars where the Open of the week is near the top of the Weekly Range (5-Trading Days in TeleChart) and the current Price is near the bottom of the Weekly Range. I see this for some stocks and not for other stocks. If the vast majority of symbols you are viewing on a Weekly Chart exhibit this pattern, it is likely that the Stock Market (or at least the stocks you are viewing) are generally lower now than five days ago.

I can only guess at what the blue little triangle shaped symbol might be. Select Tools | Chart Display Options | Markers\Trendlines and look at the symbols there. If it looks like one of these symbols, it represents whatever is listed to the left of the symbol in the Chart Display Options window.

-Bruce
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Gaute

Posted : Friday, September 11, 2009 6:48:30 PM

Registered User
Joined: 2/15/2008
Posts: 155

If you will be setting up beta testing for this process I would be interested. I'm an active option trader and presently use power options to paper trade and scan for suitable candidates. I also use stockfinder, telecharts, and other charting software. If you are intersted please post on the Stockfinder.4 forum General Discusstion

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