rrochon
117 posts
msg #30101
- Ignore rrochon |
12/2/2003 5:49:36 PM
How would you build a filter that would find OTCBB stocks that went up 20% in the last 15 minutes of the day on increasing volume, and price and volume were still increasing at the close?
Possibly these stocks would gap up the next morning as there would probably be unfilled orders at the close, and OTCBB stocks cannot trade after hours.
I have tried "stocks that were increasing 20% last 1/4 hour" however some of the stocks that it found were declining at the close, so this isn't finding the stocks I am looking for.
Any help?
Dick
|
EWZuber
1,373 posts
msg #30104
- Ignore EWZuber |
12/2/2003 10:04:24 PM
It has been my experience that often times gaps or moves up at the open can be predicted but so far I have only been successful doing this with intraday charts.
I have found that a combination of DMI(2) and Stochastics(5,3) on the hourly chart is very effective for this.
Also often times the catalyst for the gap is that there is some resistance on Daily charts that needs to be broken and the only practical way to accomplish this is for the stock to gap up.
For instance, a stock has just turned very bullish for some reason but has resistance at the declining 25 DMA just a few percent above the close. The problem lies with the fact that the 25 DMA is in a downtrend and will not work as support. However the 50 DMA is flat or maybe still in an uptrend but is 10% above the 25 DMA.
There are two alternatives.
#1, the stock gradually works on the chart and expends maybe a week or longer flattening out the 25 DMA so it can launch an assault on the 50 DMA. This will take a lot of energy and momentum from the stock.
#2. Gap the stock up to just above the 50 DMA where it can move higher off of solid support and a moving average line that is suitable as long term support and has a good chance to hold up under test.
JMHO
|