Best of s.c.a.n.

Best of s.c.a.n. is an ongoing collection of the the best responses to the questions submitted to our StockCharts Answer Network. Selected by our customer support team and s.c.a.n. editors, these responses are the answers to your questions that we wish we'd written ourselves.

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How Do I View Charts with Different Time Frames Side by Side?

 

Is there a quick way to view my charts from the same chart list with different time frames ( 60-min, daily, weekly, monthly) side by side?

dreamtalk

  

The best way to do this is to create chart lists for each time period you want to see, and then to open them all in separate browser windows. Here's how.

First, make the chart list:

  1. Make a chart list with all your symbols using daily settings.
  2. Then make 3 more lists: Weekly, Monthly and 60-Min.
  3. Now, copy the symbols from the Daily list over to the others. (For information on copying charts from one list to another, please go here.

Go into each list, and change the period settings of the charts to match the name of the list—daily for your daily list, weekly for your weekly list, monthly for your monthly list, and 60-minute for your 60-minute list. (You can do it by selecting a chart in the list, changing its period setting, and clicking the Apply Style to All button at the bottom of the page.)

Finally, open each list in a new browser window—not tab—modify the size of the window, and arrange the windows side by side. You can also use the Print view rather than 10 per Page to get rid of all the editing buttons, as I did.

Sidebyside

All you have to do now is scroll through the windows to see the charts you want.

And the above took about 10 minutes to put together.

Gord

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Is It Possible to Change the Default Scan Definitions?

 

Right now, whenever I open up the Advanced Scan Workbench, I get this default benchmark definition for the universe of securities to scan:

[type = stock] and [daily sma(20,daily volume) > 40000]

This is hopelessly broad in that it includes boatloads of thinly traded stocks, penny stocks, foreign stocks and the like — securities I would never trade in, myself. I have my own definition of a securities universe, which looks like this:

[type = stock] and [[exchange is NYSE] or [exchange is AMEX] or
[exchange is NASDAQ]] and [daily sma(50,daily volume) > 200000] and [Close > 10]

This is my personal universe, and it works for me, but the point is, I would like to change the default securities universe to be that, rather than forcing me to manually change the overly broad universe that's already baked in, every time I log in.

Is there a way to make that change?

chasfh

  

The short answer is “No.” The default scan page isn't customizable.

However, there is a workaround. You just have to change how you access the scan engine. Normally, I use the links on the Members page. You can use the right-hand link to “Create a New Scan,” which takes you to the Standard Scan Workbench. Then you hit the Advanced Scan button to get to the Advanced Scan Workbench page with the standard default starting point.

There is another link on the left, though, that you can use to pull up one of your saved scans and run it or edit it. This is the method I use, as I am either running a saved scan, editing a saved scan, or creating a new scan from scratch. Why not have the scan engine open directly in the scan where you want it to be, rather than open the default and then pull up your saved scan?

For a new scan with “MY Standard Default” intro settings, I just pull up one of my standard intro templates. These are scans I've created with different default settings that I use as a starting points. Their names start with “0” so they are always at the top of the drop-down menu list.

Changedefaultscan

One more thing, its always good to put the primary database criteria first — Symbol, Open, High, Low, Close and Volume — and put the secondary calculated criteria second. Your scans will run faster if the heavy calculations are done after the universe of stocks has already been reduced.

In other words, don't ask the scan engine to calculate EMAs, Stochastics, and Bollinger data on the entire 30,000 stocks in the database, and then ask it to scan the results for stocks between $5 and $10. Make the pool of stocks to be scanned as small as possible first. Then, run the heavy calculations. Your scans will run much, much faster.

Cheers Gord

Gord

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How to Use the Elder Impulse System to Trade

 

To experienced users of the Elder Impulse system for trading: What parameters for entering and exiting a trade have you found most useful using this system. For example do you exit a trade immediately when the daily 13 day ema chart shows a change from a green price flag to a blue, or do you wait until a red price flag is generated or what?

JHuber8383

  

Before choosing chart settings, if you are an Elder follower, you will need your “Triple Screen.” I would suggest starting with hourly, daily and weekly. Personally, I just work from a feel for each chart. For my own trades, technically, I rely more on patterns, drawn lines, and fib level responses to price action (than the signals on the Elder Impulse). I saw a comment once from Elder that he uses 13, 65 and 200 EMA's, so I have been using that as a default chart for myself. Here is an example:


Zz-elderdaily

 

If there is a clear trend, then I favor ADX. If there is not, then I favor an oscillator like RSI. When I place indicators on the chart, I usually shift the setting towards fibonacci numbers (3, 5, 8, 13, 21, 34, 55, etc). For example, on the chart I posted above, the ADX trend is down and the RSI reading is still bearish. However, what is more impressive to me is that second Head and Shoulders pattern developing within the bearish flag and the confirmation of the bearish flag this last week. The next level to watch is the 2011 low near 10604 (kind of like an upside down break out) and then an A = C measured extension on a weekly chart. Here is the A = C extension on a weekly.

Z-elderweekly

Notice that the daily (your primary trading time frame) and weekly (your big picture) charts work together using the Elder-suggested Triple Screen. All you would need to do is form an hourly chart (e.g., your entry) for your trade. Most all of this is discussed in Elder's book, Come Into My Trading Room. However, he does not discuss patterns very much in that book.

Anonymous

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Scanning for Stocks that Outperform their Indexes

 

Is it possible to use the scan engine to pull out stocks contained within an index that are outperforming that index? I would like to run a scan for stocks in the S&P 500 that are outperforming the S&P 500 as a whole. Thanks!

relaycharger

 

Here is a link to an article I wrote for the Scanning blog which should answer your question with even a few more ideas you may not have thought of.

For those who don't want to follow the link, I'll give you just a couple of snippets from that article. The very simple scan was as follows.

(Note you could turn on or off any of the individual groups by removing the double //, or just us the clause with the "OR" conditions to get the whole S&P 1500 index.)

In this case, there where two previous Highs in the $SPX index some time ago, and we were looking for stocks in that index that had now, during the last 6 days, exceeded their previous Highs during that time and were also more than 5% higher than those previous Highs.

[type = stock]
//and [group is SP500]
//and [group is SP400]
//and [group is SP600] and
[[group is SP500] or [group is SP400] or [group is SP600]]
and [max(5, close) > 6 days ago daily max(90,close) * 1.05 ]

Now for these types of scans, it is often helpful to see it in graphical form, so here are the conditions and criteria which had to exist to satisfy the scan and return a result.

Gordscan

I hope this gives you some other ideas. If you find this interesting, please read the entire article which contains much more information.

Cheers!

Gord

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Do You Use Stops? Why and How Do You Set Them?

 

Do you use stops and targets in your longer-term investments? What techniques or features of StockCharts.com help you set them accurately? The Parabolic SAR is a guide, but standard parameters yield a rather loose initial stop point.

Trading experts like Alexander Elder or Seykota advocate the use of stops. Others, like the Motley Fools, follow Buffet's approach and do not use them. I am in Elder's camp, but see my exposure to another flash crash or to sharpies hunting for my stop in less liquid positions.

If you do not use stops, what StockCharts features do you use to help protect you from severe draw downs?

WDGulf

 

One of the benefits of technical analysis is that you can find logical places to set your stops rather than trying to use a P/E ratio that looks better and better as the stock fails. Fundamental analysis does not offer logical stop setting.

Dr. Van Tharp offers some very good advice on setting stops. The setting (mental stop or actually entering it) of the stop also helps you set your position size. Dr. Elder also offers great advice on this as well. This is a brief summary.

One of the main ideas behind setting stops is to protect capital, to let your winners run. You can also use mental stops, but most technicians agree that the stop is one of the primary benefits of technical analysis.

Lets say you are trading the Tom Demark 11-day breakout. A stock is making new 2-week Highs. When you enter the trade, the best time to enter is as the trade starts to move. It is also a time when the trade falls apart. In this example, the trade fell apart almost instantly 4 times in a row. See the black lines for the setting of the stop at the 22-DMA (one-month moving average).

Setstops2

You can look on the chart and pick the same as your entry price, or the 20-dma, or a lower Bollinger Band (or anything else) as your stop. The difference between the buy price and the sell price is your risk on the trade. I have picked a chart in a downtrend to illustrate how the stops at the 22-dma would avoid serious losses. This chart also shows how sensitive the breakout location is to failure.

Greg

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How to Scan for Stocks in an Uptrend Just as the 13-Day EMA Crosses Above the 26-Day EMA

 

I've been reading a lot and still haven't quite found the scan code I'm seeking. I'm looking for a scan that will bring up stocks at the beginning of an uptrend where the 13-Day EMA crosses above the 26-Day EMA.

As a side note, I follow the Elder Impuse System, and I like to trade within Keltner Channels.

I see a lot of crossover code on this forum, but when I run these scans, invariably, the stocks are already well into their uptrend and, sometimes, even too far above the 13-Day EMA for me to go long — so they just go into a watch list for a possible pullback to the 13/26 EMA zone.

So here is what I came up with:

[type = stock] and
[country = us] and
[daily volume > 500000] and
[close > 20.00] and
[close < ema(13)] and
[close >= ema(26)]

Can you help me tweak it so I get better results?

–BearTrader

 

Hi BearTrader,

A couple of comments. Are you matching your scan parameters to your trading time frame? If you want to capture the very beginning of a trend the 13 and 26 EMAs won't work because it takes quite a few days to turn them. On the other hand, once turned, they may be good choices for longer-term trades. If you want to get in early, you could try much shorter-term crossovers, e.g. 3x13,

and [ema(3,close) x ema(13,close)].

To get in even earlier, test for a Close crossing a falling EMA,

and [close x ema(13,close)] and [ema(13,close) < 5 days ago ema(13,close)].

To further put things in your favor, also test for a rising, longer-term moving average,

and [ema(50, close) > 10 days ago ema(50,close).

I've also noticed recently, although I haven't tested it extensively, that a Close above the lowest Open when the short-term MA is falling can be followed by a change of trend, sometimes after a test of the Low, so,

[group is sp500] and [ema(13,close) < 5 days ago ema(13,close)] and [close > open] and [close > 1 day ago min(7, open)].

A final note, I'm defining trend here really as a leg or a swing in a larger uptrend, assuming that's what your are looking for. Also, I've noticed higher-volume, higher-priced stocks tend to form more regular patterns (most of the time). If you want the lower-price bang for the buck, the percent changes for in-the-money options can be pretty good, although that cuts both ways.

–markd

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Create "AND/OR" Criteria with the Advanced Scan Workbench

 

The Standard Scan Workbench can apply a criteria to just ONE single day, such as just today or just yesterday. It cannot search both today and yesterday. However, the SC support staff says that the Advanced Scan Workbench has the capacity for a 2-day search by using the “and/or” criteria to run the criteria against today's data OR yesterday's. But I cannot find the OR button anywhere. Can anyone tell me how to write criteria for an advanced scan in which the Plus DI line crosses above the Minus DI line for either today OR yesterday?

Bill Scott

 

You are correct there is no button for the OR function. By default, the And function is used whenever you insert something into your scan. Just manually change it to OR. However, be careful how you use it.

Here's an example. Note how I nested the OR inside an extra set of brackets so it applies only to the two DI clauses.

Also, I used a price bracket—Close between 10 and 20—just for scan checking: it reduces the output. Running it now, I get 216 stocks that crossed today, and then running it with today's or yesterday's crosses, I get 422 stocks.


[close > 10]
and [close <20]
and [ [Plus DI(14) x Minus DI(14)] or [1 day ago Plus DI(14) x 1 day ago Minus DI(14)] ]

 

I hope this gives you some other ideas.

Gord

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How Can I scan for the “Pocket Pivot” Setup?

 

Does anyone have a scan for the “Pocket Pivot” that they would be willing to share?

–TicoBob

 

My scan is based on the definition used by Chris Kacher (who came up with the concept). See his book or his website for details.

There are some fundamentals and situational criteria that need to be addressed, but the following will narrow the possibilities:

// Criteria to only scan leading stocks

[type = stock] and 
[daily sma(40,daily volume) > 500000] and
[daily sma(40,daily close) > 10] and
[daily close > daily sma(200,daily close)] and

// Criteria to verify the day's volume should be larger than the highest down volume day over the prior 10 days
[daily volume > 1 days ago daily volume * 1 days ago ROC(1) /absval(1 days ago ROC(1))* -1] and

[daily volume > 2 days ago daily volume * 2 days ago ROC(1) /absval(2 days ago ROC(1))* -1] and
[daily volume > 3 days ago daily volume * 3 days ago ROC(1) /absval(3 days ago ROC(1))* -1] and
[daily volume > 4 days ago daily volume * 4 days ago ROC(1) /absval(4 days ago ROC(1))* -1] and
[daily volume > 5 days ago daily volume * 5 days ago ROC(1) /absval(5 days ago ROC(1))* -1] and
[daily volume > 6 days ago daily volume * 6 days ago ROC(1) /absval(6 days ago ROC(1))* -1] and
[daily volume > 7 days ago daily volume * 7 days ago ROC(1) /absval(7 days ago ROC(1))* -1] and
[daily volume > 8 days ago daily volume * 8 days ago ROC(1) /absval(8 days ago ROC(1))* -1] and
[daily volume > 9 days ago daily volume * 9 days ago ROC(1) /absval(9 days ago ROC(1))* -1] and
[daily volume > 10 days ago daily volume * 10 days ago ROC(1) /absval(10 days ago ROC(1))* -1] and

//Criteria to see jump through 10 or 50 d SMA
[[yesterday's daily close < yesterday's daily sma(10,daily close)] and [daily close > daily sma(10,daily close)]

or

[yesterday's daily close < yesterday's daily sma(50,daily close)] and [daily close > daily sma(50,daily close)]]

Once you've run this scan, then you'll need to visually inspect the candidates. You're looking for either an early buy point within a consolidation or a consolidation buy point for a leading stock already firmly entrenched in a strong uptrend. (This is very easy to do visually, but would be very tough to program into the scan.) The scan found 6 symbols tonight, but none had charts that visually matched these criteria. Not surprising, since you don't expect to find pocket pivots very often.

MarkK

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How Can You Find the Industry a Stock Is In on the StockCharts.com Website?

 

Is there a way to find out what Industry/Sector a stock is in through stockcharts.com? And is there a way to find out what stocks are in a given Industry/Sector? I know the PerfCharts list about 10 stocks, but I'd like to see them all.

–Money1957

 

There are several ways to see which industry or sector a particular stock is in. The easiest might be to just create a SharpChart for that stock and turn on the Full Quote option. The sector/industry information (if we have it) will be in the upper left-hand corner of the Full Quote box.

To see which stocks are in a given industry/sector is slightly more work. You need to create and  run a scan that only returns stocks in the sector/industry you are interested in. For example, using the Advanced Scan Workbench, you'd use:

[group is BasicMaterialsSector]

Use the Sectors and Industries dropdown menu in the Scan Builder to get the proper syntax for the sector/industry you are interested in.

Note: Since his approach requires access to the custom scan workbenches, it will only work for Extra and ExtraRT members.

—Chip

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Stochastic Pop and Drop

Developed by Jake Berstein, modified by David Steckler and tweaked at StockCharts, here is a scan that uses the Stochastic Oscillator to idenfity price pops and price drops. The bullish Stochastic Pop looks for stocks with a long-term Stochastic Oscillator above 50, an ADX value below 20 and a short-term Stochastic Oscillator surge above 80.

Bullish Stochastic Pop:

  [type = stock]
  and [today's sma(20,volume) > 40000]
  and [today's sma(60,close) > 20]
  and [Slow Stoch %K (70,3) > 50]
  and [ADX Line (14) < 20]
  and [today's Slow Stoch %K (14,3) x 80]

The bearish Stochastic Pop looks for stocks with a long-term Stochastic Oscillator below 50, an ADX value below 20 and a short-term Stochastic Oscillator plunge below 20.

Bearish Stochastic Drop:

  [type = stock]
  and [today's sma(20,volume) > 40000]
  and [today's sma(60,close) > 20]
  and [Slow Stoch %K (70,3) < 50]
  and [ADX Line (14) < 20]
  and [20 x today's Slow Stoch %K (14,3)]

Extra! users can copy this scan code and paste it in the Advance Scan Workbench. There is also a ChartSchool article with detailed examples.

 

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