Page 444 - THE MARKET WHISPERER

440 PART 12 - Choosing a Winner Stock

This is the filter:
1. Show stock where close is between 10 and 70
2. and Average Volume (30) is above 750000
3. and 52-week high is less than 1 point above high
4. and close is above open

Once this filter is entered into the scanner program, one click on
“search” will display stocks fulfilling the above criteria. Were too many
stocks on the list? Increase the volume to 1 million.

Filters that search for formation will look like this:
1. Show stocks where pattern is a head and shoulders
2. Show stocks where pattern is a cup and handle
3. Show stocks where pattern is a double-bottom

To all these filters, we add the definitions for price range, volatility, and
average daily volume.

Example: a filter searching for bull doji formation with reversal (we are
looking for reversals formed by candles rising after the doji) will look like
this:

1. close is above open
2. and close 1 day ago equals open 1 day ago
3. and close 2 days ago is below open 2 days ago
4. and open 1 day ago is below close 2 days ago
5. and open is above open 1 day ago
6. and close is above close 2 days ago
7. and close is below open 2 days ago
8. and close 2 days ago was decreasing for 2 days
9. and average volume (3) is above 750,000

Example: searching for a gap up of more than 2% over 2 trading days:
1. show stocks where low is above close 1 day ago