Hi Balti,
I2 and I use a couple of online stock screeners. The one we've used the most lately is finviz.com. It's free. I don't know of any screeners that can identify chart patterns so what I do is limit my search to American and Canadian companies traded on the New York stock exchange, the American stock exchange, or NASDAQ with a closing price within my desired price range. I then copy and past the returned lines of data to an Excel spreadsheet. There will usually be a few columns of data that I don't care about so I will delete those columns. I will rearrange the columns to be in an order that is more to my liking. Then I search for "ADR" or words that indicate a Fund, Warrant, or (I forgot to mention before) REIT and eliminate those from the list. After that, I use a free online charting tool (Big Charts and/or Trading View, each one has features I like but Big Charts is my first look) to look for Ted patterns. I eliminate the stocks from my spreadsheet that don't have a pattern I like. That's my first cut. I'll go through what is left again and again looking at a few more fine points before I come up with a final list of my favorites that I will watch for a buy signal. Some may already be giving a buy signal at the time of the screening. Even with a buy signal, I have to really like the stock before I buy.
Even though Ted didn't see these as important, here are a few other things I look for that will cause a stock to jump above the others in my mind. Does it pay a dividend? What do the quarterly earnings look like? (When we are looking at stocks at very low prices, the companies usually have negative earnings. I accept this but I want to see a recent pattern of improving earnings or else the earnings are only slightly negative.) Trading view is better for finding this type of information and even more balance sheet information. Is the stock in a sector that I am expecting to do well in the near future? You can probably come up with other things that you think might be a positive for the stock.
One more thing that I don't think I mentioned in any early posts. Among Ted's patterns, the best for a long term price rise of several hundred percent is the long "flat" base. Remember that flat is often not truly flat. There may be a slight slope. Anyway, beware of the long flat base that is too long. I question a flat base that is longer that 6 or 7 years. It could be that the stock is just a dud.
Happy Trades to You.
Jim |
