Wednesday, September 30, 2009

A Few Notes on Intraday Stock Screening

I've been watching my basket of 40 stocks and how many have been making fresh five-minute new highs and lows. Here are a few observations:

* When we get a several minute market bounce or drop and far fewer than half of stocks register fresh five-minute new highs or lows, it's worth looking for a retracement of that move;

* A cumulative line of the number of stocks making new highs vs. lows gives a general sense of trending;

* If you stop seeing new highs or lows from stocks in a sector that has been leading the market higher or lower, that often precedes a market turn;

* When the market is making a valid breakout move, the vast majority of stocks will register new highs or lows;

* In a slow, range trade, you'll see a mixture of stocks making new highs and lows;

* If you define an X-minute opening range, seeing a great majority of stocks break higher or lower than that range is a useful alert to an early trending move;

* If you track new highs/lows and breakout moves at different time frames (for example, five minutes vs. one hour), you can catch short-term moves within larger-term moves.

I'm finding the Trade-Ideas platform to be useful as a way of creating custom baskets of stocks and tracking their strength and weakness over time.


david said...

How about tracking advancing/declining volume
on minute bar basis? The nyse uses the previous close only.

A Stock is considered advanced if it stock price moved up over a minute. No matter where the stock is in relation to the previous day close, if this stock moves up over a minute it is considered as advanced stock.

Horace Kent said...

this is why i still have an open scottrade account.

they have a fabulous little "tool" - its merely called "highs/lows tape"

its a ticker tape that registers daily highs and lows. most people who have opened this up in their scottrade elite software dismiss it early. why? the stream is unbelievably fast! but, you can customize it to price, volume, and even % moves, exchanges....

i have 2 tapes open all the time.....the first is all stocks over $2 trading at least 200K shares. basically all "tradeable" stocks. the second is more refined. stocks trading over $10/share, trading over 500K in volume, and that are up over or down over 1.9% daily highs or lows less than that do not clutter this tape. this second tape - especially during the first 90 minutes shows me what is moving quickly.

the speed at which the tickers roll by really lets you see the "pulse" of the market. highs are colored green, lows are colored red. it is quite easy to see the large program trades............the speed with which the ticker spits out tickers increases dramatically.

if i were an ES scalper..........i don't know how i wouldn't use such a tool.