New Scans: Strong, Oversold Stocks and Weak, Overbought Stocks

I added a few new scans to the site last night.  They are:

Some definitions:  

I've only been using these scans for a few days but so far my favorite is the "Strong, Oversold, Upside Reversal" scan.  A textbook example of the type of action that scan is meant to catch is what JOY did on May 6th:  

JOY Global chart

As you can see it hit oversold territory (based on stochastic) in early May.  The candle that I've highlighted is an NR7 (narrowest range in the last seven sessions), which *can be* a reversal signal.  So it triggered in the scn based on those two things.  I also like that it's pulled back in a somehat orderly fashion and was perched just above its 50-day moving average and that it was right at its lower Bollinger Band.  So JOY would go on my buy list with an entry just above the May 6th high.

The "Strong, Oversold" scan is less likely to find immediate buy setups.  That's a scan that I run to find things to add to my watchlist.  Those stocks are worth tracking for a few days to see if they present good setups.

The two "weak, overbought" scans do just the opposite of what I've described for the "strong, oversold" scans.  These are meant to help find shorting candidates in my mind but perhaps others may find them useful for other strategies.

These scans can be accessed via the top navigation menu.  They're under "Research / Pre-Defined Scans".  Look for more scans and other features soon...

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ZealousTrout235 about 1 month ago

Great site, and great work putting it al together.  I'm wondering, if you or anyone who uses your system has done a fair amount of monitoring on WHICH Bullish Signals have produced the most ROI, on a weekly, monthly, and consistent basis?  Would love to see more on this.  In other words, when I look at this URL: https://swingtradebot.com/stock-screens/Bullish - are there specific scans that have consistently outperformed vs. other scans?  Let us know.  Thanks in advance.

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TraderMike about 1 month ago

Hi,

I have not done any such studies.  This is essentially the question "what are the best scans/signals?", which I've addressed briefly in the FAQ by writing:

That's one of those classic "it depends" questions. There are so many things to consider:.
  • what phase the market is in (bullish/bearish)
  • your holding period
  • how you manage exits
  • where your initial stop is located
  • probably several other things...
If I had an answer that was true for me it most likely would not hold true for a trader with a different trading style/system.
All those variables and more would likely make someone's study likely irrelevant for your specific trading style.  

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