wallman
299 posts
msg #47712
- Ignore wallman
modified |
10/28/2006 9:05:41 PM
To scan for stocks with this filter, I add these columns to my results page:
RSI(2), Fast Stochastics(14,10), Williams %R(10).
Instead of putting the above indicators in my filter as criteria, I add these columns for viewing and ranking, since I have found that combination filters, for me, only eliminate many potential gainers. Then I sort according to those 3 columns, and look for patterns, things that line up, or things that don't fit.
FIRST and foremost I sort them by RSI(2) column, from highest to lowest. Then I try to put them in groups by RSI value. Usually the high group is from around 15 and up. mid group is from 14 to 2, and low group under 2. This varies a bit day to day depending on the stocks returned on the filter for that particular day.
Examples on 10.26.2006
In the top group:
STKL IKAN TQNT with RSI over 20, quite high for a bottom fishing filter. Of those 3, STKL and IKAN barely made the filter since the Fast Stochs were in the 9.6 range on both. Of these 2, IKAN had the best Williams 10 of -87.67. So I see IKAN as a fairly "strong" stock to be hitting this type of filter. The relatively high RSI and Williams didn't fit with it hitting this oversold Stoch filter.
In the mid group:
from TRCA with RSI 9.24 to ATRM with an RSI of 2.14, we have INSM with a Fast Stoch of 0.00 and Williams of -100.00. Any stock with fast stoch and Williams R together, in ANY group is an automatic watch. In the rest of the stocks in this mid group, we have ATRM with it's 2.14 RSI yet it has the highest fast stoch at 9.06 and also of this group we have EXFO with the best Williams at -90.94, therefore a top watch for me.
In the bottom group:
ABY to HMB.
Of this group ABY has a relatively high fast stoch of 7.02 but has seemingly bottomed out on the Williams at -100.00. So the higher fast stoch shows divergence with the very low RSI and Williams.
Then we have RNVS with an RSI of 0.68, fast stoch of 0.58. Of the six stocks in the low group, RNVS is clearly the lowest fast stoch of the low group, therefore to me, it would point to a reversal if it catches and hold green since it is the lowest of the low.
A few more examples on 10.06.2006
After ranking them by RSI2 group, we have AATI with high RSI of 52.49, relatively high Williams at -83.64. Only other stock on list with high RSI is ZHNE with RSI at 31.21, clearly indicating to me that these 2 stocks are too strong to be on this bottom fishing filter.
Another example from that day is CGR. Note that the RSI puts it in the top group at 32.33, YET it shows a fast stoch of 0.00 and Williams of -100.00. Even if this stock hadn't hit total dead bottom at 0.00 and -100.00, anything close to those numbers indicates divergence, i.e. something that doesn't fit, considering its RSI of 32.
Example on 10.04.2006
IVN fifth lowest RSI at 1.47, YET barely made the filter with a "high" fast stoch of 9.35 and also shows the second best Williams of the 31 matches this day at -83.75.
Example on 9.29.2006
Highest RSI was ANAD at 37.20, BARELY made the filter with 10.00 on fast stoch, Williams under 90 at -85.71, indicating to me a strong stock to be hitting this filter.
Then at bottom of list, PKTR with second lowest RSI at 0.20, yet stoch at 7.32 and a very respectable (for this filter) Williams at -92.68.
Example on 9.22.2006
and also an example of why I don't use RSI to screen out stocks in my filters since if I my filter had said RSI(2) of below 10, I would have missed the top group. On this day there are 11 stocks with RSI2 of 25 or more, 10 gainers, 1 small loss, and of the 10 gainers, 9 are double digits as of today. On the same day, there are 9 stocks at the bottom with RSI(2) below 0.97. Of these 9 there are 2 with relatively high stochs for this group. DPHIQ with 7.32 and WSTL with 7.23. This is the divergence that I look for.
Example on 9.21.2006
Of the 8 stocks in bottom group of RSI2 under 1, DPHIQ again shows that divergence with RSI 0.94 yet a fast stoch of 7.50.
Example on 9.19.2006
The matches here will show why I don't mind having a lot of matches, in this case, 38. Many of these matches are Natural Resources, Metals, Power, etc. which may indicate a sector turnaround. Especially if you notice that the high RSI group is dominated by these sectors and add to that the fact that I have learned how to rank my top watches, so lists of 30 or more matches are fine with me.
Regarding volume, I DO NOT use Average Volume with this filter as you can miss historically low average volume stocks with huge volume increases in the last day/days.
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