Potential Buying Opportunities
This scan is designed to help you find stocks that are generally moving in a bullish trend but have recently taken a small step back or paused.
This slight drop or pause may give you an opportunity to buy at a better price before the stock continues to move higher.
How it works:
- Checking for Bullish Momentum: The scan looks at a momentum indicator called the “CCI” (Commodity Channel Index) over the last 50 days (10 weeks). We want this indicator to be above 0, which suggests that the stock is generally trending upward.
- Looking for a Price Drop: Then scan checks if the stock's recent closing price is below its average price over the past 26 days. This drop suggests the stock price might be temporarily cheaper than usual, potentially offering a good buying opportunity.
When both conditions are met, it may indicate that the stock is in a good position to buy, with a favorable balance of risk and potential reward.
Potential Selling Opportunities
This scan is designed to help you find stocks that are generally moving in a bearish trend but have recently experienced a small rise or pause.
This increase or pause might give you a good opportunity to sell or take a bearish position before the stock continues to move lower.
How it works:
- Checking for Bearish Momentum: The scan looks at a momentum indicator called the “CCI” (Commodity Channel Index) over the last 50 days (10 weeks). We want this indicator to be below 0, which suggests that the stock is generally trending downward.
- Looking for a Price Increase: Then scan checks if the stock's recent closing price is above its average price over the past 26 days. This increase suggests the stock price might be temporarily more expensive than usual, potentially offering a good selling opportunity.
When both conditions are met, it may indicate that the stock is in a good position to sell, with a favorable balance of risk and potential reward.
Spotting Potential Turnarounds for Buying
This scan is designed to help you find stocks that have moved sharply downward in a very bearish trend but are showing signs that they might start reversing upward.
These situations can offer an excellent opportunity to buy at a lower price before the stock potentially begins a new upward trend.
How it works:
- The scan checks an indicator called “RSI” (Relative Strength Index) over two different time frames. The first RSI looks at the last 10 days (daily time frame), while the second RSI examines the last 40 days (weekly time frame). When the average of these two RSI numbers is below 35, it suggests that the stock has been heavily sold off both in the short term (daily) and longer term (weekly).
By requiring the stock to be oversold on both daily and weekly time frames, this scan aims to identify stocks that are deeply undervalued across multiple time horizons, increasing the likelihood of a significant reversal.
Potential Selling Opportunities
This scan is designed to help you find stocks that have moved sharply upward in a very bullish trend but are showing signs that they might start reversing downward.
These situations can offer an excellent opportunity to sell at a higher price before the stock potentially begins a new downward trend.
How it works:
- The scan checks an indicator called “RSI” (Relative Strength Index) over two different time frames. The first RSI looks at the last 10 days (daily time frame), while the second RSI examines the last 40 days (weekly time frame). When the average of these two RSI numbers is above 70, it suggests that the stock has been heavily bought both in the short term (daily) and longer term (weekly).
By requiring the stock to be overbought on both daily and weekly time frames, this scan aims to identify stocks that are deeply overvalued across multiple time horizons, increasing the likelihood of a significant reversal.
Identifying Breakout Stocks Outperforming the Market
This scan is designed to help you find stocks that breaking out and are outperforming the broader market, specifically the S&P 500.
It looks for stocks that are gaining strength compared to the market, which may signal an opportunity to buy into a stock that is leading the pack.
How it works:
- Checking for Outperformance: The scan calculates a ratio of the stock's price relative to the S&P 500. We look for instances where the ratio chart makes a new 2-month high, indicating that the stock is outperforming the market over the past two months.
- Confirming Momentum: By focusing on stocks breaking to new relative highs, the scan helps identify strong momentum, meaning the stock is not just rising, but doing so more robustly than the broader market.
When both conditions are met, it suggests that the stock is positioned to continue its relative outperformance, presenting a potential buying opportunity.
Identifying Breakdown Stocks Underperforming the Market
This scan helps you spot stocks that are breaking down and lagging behind the market.
It focuses on identifying stocks that are losing ground compared to the S&P 500, signaling potential selling or short-selling opportunities.
How it works:
- Checking for Underperformance: The scan calculates a ratio of the stock's price relative to the S&P 500. We look for stocks where this ratio chart makes a new 1.5-month low, indicating that the stock has been underperforming compared to the market over the past six weeks.
- Identifying Continued Weakness By focusing on stocks making new relative lows, the scan helps highlight stocks that are weakening in comparison to the broader market, suggesting further underperformance may occur.
When both conditions are met, it may indicate the stock is in a bearish trend and could continue to underperform, presenting an opportunity for bearish strategies.
