Strong Stocks Long ( MC, LC )
We look for shortterm setbacks of stocks in strong longer term trend. You can choose also to invest in installments . 1/3 when signal is fired ( Stock pops up in screen ) 1/3 when the signal is confirmed by the stocks move, 1/3 when the stocks resuming of the uptrend is fully confirmed by a new high. Portfolio Approach : You could buy the first ten stocks with the strongest Chartmill fundamental ratings i.e. Use position sizing based on volatility ( ATR ;10) to determine how much to invest. Finally, use trailing stops to secure any profits and avoid too much losses. Exit : You can sell the 1. 1/3 of a position once it is well in the plus zone, thereby enjoying a free ride for the rest of the position and generating liquidity for the next stock. Check daily or weekly , but let your profits run and tighten your stops once you're in trade. You might get stopped out early sometimes though. Some traders use mental stops, but with 10 positions this might be difficult to to manage
Stock Screener Settings
Force: Force Index crossing 0 from below
The stock had recently consolidated and is now ready for the next move up
Average Volume: 50 SMA > 2M
We want liquid stocks with tight spreads and low slippage.
Market Cap: At least Mid (2B+)
We want so see at least some solid companies here, No startups or small / micro caps. But don't let your shortterm trades become investments if the trend goes against you.
Exchange: US Only
Most other markets usually do not provide the required liquidity to keep spreads / slippage low. However, the screen might also work in Europe and Asia for the most traded stocks.
ETF: none
We screen for stocks. Maybe the screen works also for ETFs.
Price: Above 10
We want to see some institutional interest in a stock. Usually, a price-level above 10 USD assures this
SMA1: Price Above Rising SMA 50
We want the stock trading over it's 50 day SMA, showing also mid-term strength
SMA2: 200 SMA Rising
We want to see the stock not only trading above its 200 day sma but we also want to see the 200 day sma pointing upward confirming the longer term strength
Chart Settings
show all indicators on a candelstick chart. Add S&R Levels and ATR(10) in order to determine entry and exit points and stop losses. Use position-size methods to reduce risk.
Regional Run
Run this screen in your favorite region. You can always further fine tune the screen by changing the general settings after it opened in the screener.