Sometimes finding trends in the markets can be difficult. Fortunately for us, this is not one of those times.
Following up on a previous post and video
here is an example of how using technology can give you a real leg up on trading in any market
In the video below, I make use of one of my favorite stock screening technologies, the Marketclub.com smart scan. What’s great about smart scan is that you can get a quick view of the trends in the markets by simply looking at the number of results returned by each custom scan.
For today’s scan, I noticed that the ratio of 52 week lows versus 52 week highs is over 7.75 to 1; this is a very bearish signal! I decided to take a look at the 52 week lows, and was amazed by what I saw
What a fantastic opportunity! I filtered out stocks below $20 and that trade under 1 million shares per day. What I got was a targeted list of stocks in which 95% where in a clear descending continuation triangle. All we have to do now is use the trade triangles to see if it’s an appropriate time to get short. For those who are strict technical traders, you’ll want wait for the stock to break below the floor of the triangle on high volume. Check out the video
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