"ONE DAY REVERSAL SCAN PROGRAM"
The following scan program was written for QUOTE+. The following
criteria was used in this program:
1- Down trending stock (short term or long term)
2- Three down closing days in a row
3- Stock makes a new low but closes above the previous day close
4- Increasing volumn around the one day reversal.
I contend a one day reversal is a combination of public panic selling, short covering and market makers doing their thing. Many times the stock becomes undervalued because of this reaction. This reversal usually signals the end of a short or long term down trend. Either a base forms or some minor down days. Not all stocks react the
same. I like to see a steep decline with large volumn days suggesting the bottom is near.
comment="Down Trend Reversal "
allgroup
exchange nyse,amex,nasdaq
close(0)<=40 // looks for stocks $40 or lower
close(0)>=3 // looks for stocks $3 or higher
loop(0,-4) //looks over 5 day period. 5 days to spot reversals
vol(0)>=100 // volumn exceeds 10,000 shares
low(0)<low(-1) //new low from previous day
close(0)>close(-1) // present close exceeds previous day close
close(-1)<close(-2) //close day( -1) less then close day(-2)
close(-2)<close(-3) //close day(-2) less then close (-3)
close(-3)<=close(-4) //close day(-3) less or equal to close(-4)
vol(0)>=avgvol(-1,-22)*1.5 //present day vol exceeds 1.5 times previous 21 day avg
vol
vol(-1)>=avgvol(-2,-23)*1.5 //vol(-1) exceeds 1.5 times previous 21 //day avg vol
vol(-2)>=avgvol(-3,-24)*1.5 //volumn(-2) exceeds 1.5 times previous 21 day avg vol
wmovavg(0,13,cl)<wmovavg(0,34,cl) // looks for declining trend |
