Registered User
Joined: 12/7/2004
Posts: 7
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today's Worden Report talks about fan patterns. I'm not sure how to identify one. Does anyone have any current examples. GAP which was mentioned in the write up, is fairly obvious looking one year back, but how do I identify one
as of today, before a big run?
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Registered User
Joined: 1/28/2005
Posts: 6,049
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cigar10
A fan pattern happens when the close is above the 20 MAV and the 20MAV is above the 50MAV and the 50MAV is above the 100MAV and the 100MAV is above the 200MAV.
Realize that there are 2 types of fan patterns. Stocks that were not in a fan yesterday and are today and stocks that were in a fan pattern yesterday and are still in one today.
Sir Fan Pattern not only uses the pattern but time to eliminate the weak from the strong. He enters
stocks in a watchlist when they go above 50MAV and drops them out when they go below. Over
time he will have stocks that have been above 50 many days (strength) this is an important part of the strategy.
You can use this scan to find stocks that have entered the fan pattern today:
(C > AVGC20 AND AVGC20 > AVGC50 AND AVGC50 > AVGC100 AND AVGC100 > AVGC200) AND NOT (C1 > AVGC20.1 AND AVGC20.1 > AVGC50.1 AND AVGC50.1 > AVGC100.1 AND AVGC100.1 > AVGC200.1)
There were 159 stocks today.
Realize that because a stock enters a fan pattern it does not necessarily mean its the start of a move. It could have been in a fan for months and just spend one day below the 20 Mav and then the fan will restart again.
For an example of stocks that entered the fan today : BBY and RESC.
Some examples of long term fans: TIE, ESRX, MCO. (These are the types of stocks the strategy
is trying to unearth.)
Hope that helps
Good Luck
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