Sunday, February 3, 2008

Updated Short Scan for Telechart

I have been tinkering with my main short scan in Telechart for the past day or so and the charts that I am getting from this updated scan are closer to what I am looking for in a short, so for those interested, here is the updated Easy Scan with PCF's:

PCF #1 - Down 15% in last 25-30 Days, but up at least 5% in last 5-7 days.

100 * ((C + .01) - (MAXC7 + .01)) / (MAXC7 + .01) <= ( 5) AND 100 * ((C + .01) - (MAXC30 + .01)) / (MAXC30 + .01) <= ( - 15)

I have tinkered with the number of days from 25 to 30 and also 5 to 7 and this seems to work well, although you can try to change them for your own preferences.

PCF #2 - Short Scan - Within 5% of 50 day moving average.

C >= (AVGC50 * .95) AND C < (AVGC50 * 1.05)

PCF #3 - Volume Decreasing on Rally

AVGV7 < AVGV7.7

I have also tinkered with the number of days with this PCF and sometimes don't include it in the main scan and just look at the volume myself.

That is the basic part of the scan - you can set your own volume and price requirements with Easy Scan conditions, and I also add a BOP filter and a 1 year price growth filter as well, but this is optional. Running this scan this weekend, I got some of the following charts to look at as possible shorts if we keep rallying over the next few days.

ABB

AGU

ARD

FWLT

GIGM

MTN
Charts from Telechart2007, Courtesy of Worden Brothers, Inc.


These charts all have good volume patterns and are the ones I will be focusing when the market tells us it is time to short again. On my watchlist are also the following stocks: SCHN, CCOI, GTI, FUL, VIP, SGR, OMG, AG, and DSX. Some of these look like very good possible shorts, while others have a few flaws in their volume patterns. All of these are worth keeping on a watchlist over the next week or so if this bounce does indeed start failing as I expect it to. Good luck next week, and go Giants! (I'm a Steelers fan, so I am just rooting against the Pats.)


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