Technical Analysis Scan Types

Last modified 10:10, 5 Nov 2012

Technical Anaylsis Scan Types

The Technical Analysis tab contains three groups of pre-computed scan types:

precompscntabsm_techanlys.gif

Click on the plus sign [+] to expand each group to view its scan types.

For each row in the scan type table, the List Name of the Scan Type together with the number of results (Count) for the day that the scan took place on (Date).

By default the date of the scan will be the current date. A previous date can be selected using the Date Selector in the Pre-computed Scan work page's Function Bar. First unselect Use Current Data, then type in or select the required date in the Search Date text box. For more information, go to the Change Date help topic.

The Scan Results displayed on the right can be filtered using the Intersection tool. To include a scan type in an intersection, select its check-box [x]. This will limit the displayed results to those which are also included for any other scan type that is also selected. For more information, go to the Filter with Intersections help topic.

Click on the minus sign [–] to collapse each group to make the selection area less cluttered.

Trend group

The Trend group contains two scan types that act in reverse of each other.

Bearish Trend

The Bearish Trend scan type uses four technical indicators to ascertain whether a stock is in a downward price trend.

The indicators are Momentum, Price Oscillator, Chaikin Money Flow and Directional Movement Index (DMI).

A percentile score is calculated and the lowest 250 results are displayed in ascending order of their Score.

Bullish Trend

The Bullish Trend scan type uses exactly the same technical indicator criteria as the Bearish Trend.

The Bullish Trend scan results are the highest 250 results, displayed in descending order of their Score.

Rankings group

The Rankings group contains eight scan types. Each scan type is paired with its opposite, i.e. the scan types are in four pairs, one scan's criteria set to detect a rising market, the other set to detect falling market conditions.

Bollinger Band Expansion / Squeeze

The Bollinger Band indicator plots a channel formed by two standard deviations (above and below) a moving average.

The statistical deviation used to plot the two bands is a statistical formula designed to identify price dispersal around an average value. Normally 95% of the chart's price data will be included between the two trading bands formed by the two deviations.

The Expansion / Squeeze Ranker utilizes two statistical deviations, one based on a short period of 20 days, the other on a longer period of 100 days, and compares the difference in dispersal.

If the bands produced by the shorter calculation are wider than the bands plotted by the longer, it indicates that in the short term prices are more active or volatile, and an "expansion" of the price range can be expected.

On the other hand, if the long bands are wider than the short bands, it indicates that the more recent prices are less volatile than older prices, and that the price is likely to be "squeezed" into a narrower range.

The Bollinger Band Expansion / Squeeze Ranker is non-directional, but does identify securities with increasing (Expansion) or decreasing (Squeeze) levels of price volatility. Other indicators should be relied on to establish the direction of the market.

The following calculations are used to create these two Rankers:

Bollinger Bands Expansion

If the result of the following equation is greater than one:

BolBandExpForm.png

Then the result will be added to the Bollinger Bands Expansion Rankers list, in descending order.

Only the first 250 results, subject to the results filters [see below], will be displayed on the list.

Bollinger Bands Squeeze

If the result of the following equation is less than one:

BolBandSqzForm.png

Then the result will be added to the Bollinger Bands Squeeze Rankers list, in ascending order.

Only the first 250 results, subject to the results filters [see below], will be displayed on the list.

Consolidating / Explosive Stocks

A short-term statistical volatility level and long-term statistical volatility level are compared to assess the price volatility of the symbol.

For the purposes of this Ranking, short-term Statistical Volatility is calculated using the previous six periods, and long-term is calculated over the previous 100 periods.

The following calculations are used to create these two Rankers:

Explosive Stocks

If the result of the following equation is greater than one:

ExpStksForm.png

Then the result will be added to the Explosive Stocks Rankers list, in descending order.

Only the first 250 results, subject to the results filters [see below], will be displayed on the list.

Consolidating Stocks

If the result of the following equation is less than one:

ConStksForm.png

Then the result will be added to the Negative Volume Momentum Rankers list, in ascending order.

Only the first 250 results, subject to the results filters [see below], will be displayed on the list.

Negative / Positive Volume Momentum

The Volume Momentum pre-computed scan uses Volume Momentum indicator results to determine the strength of each symbol's volume momentum compared to other symbols in a market.

The Positive Volume Momentum results lists the 250 symbols with the strongest upward volume momentum in descending order, and the Negative Volume Momentum results lists the 250 symbols with the strongest downward volume momentum in descending order

Positive Volume Momentum

If the result of the following equation is greater than one:

PosVolMomForm.png

Then the result will be added to the Positive Volume Momentum Rankers list, in descending order.

Only the first 250 results, subject to the results filters [see below], will be displayed on the list.

Negative Volume Momentum

If the result of the following equation is less than one:

NegVolMomForm.png

Then the result will be added to the Negative Volume Momentum Rankers list, in descending order.

Only the first 250 results, subject to the results filters [see below], will be displayed on the list.

Williams % R Overbought / Oversold

The Williams % R indicator is based on a presumption that prices tend to close in the upper end of the range in the late stages of an uptrend, and tend to close in the lower end of their ranges during the final stages of a downtrend. The Williams % R compares the close to the highest high over a specified period.

Readings in the range of 80% to 100% indicate that the market is oversold, while readings in the 0% to 20% range suggest that the market is overbought.

For the purposes of this Ranking, the specified period is nine periods.

The following calculations are used to create these two Rankers:

Williams % R Overbought

Where:

Williams % R over previous 9 periods   >=   80

Then the result will be added to the Williams % R Overbought Rankers list, in descending order.

Only the first 250 results, subject to the results filters [see below], will be displayed on the list.

Williams % R Oversold

Where:

Williams % R over previous 9 periods   <=   20

Then the result will be added to the Williams % R Oversold Rankers list, in ascending order.

Only the first 250 results, subject to the results filters [see below], will be displayed on the list.

Rankings Group Results Display

For most markets, the top 250 results are displayed in descending order of magnitude.

The results are saved and can be accessed at any time by users. The results are always ready for immediate download and display. date, the scan will retrieve the scan for the indicated date from the server's database.

When the individual results are selected and displayed as price charts, the indicators and or signals that were used in the Rankings analysis will be automatically displayed.

Results Filter

Filters are applied to the Rankings results to eliminate inactive or low value symbols from the list.

The following filters apply:

Market

Minimum Share value

Minimum Daily Volume

US Market

>= $10.00

>= 300,000

All other Markets

>=    1.00

>= 100,000

Oscillator group

The Oscillator group contains a pair of scan types that act in reverse of each other.

Overbought Oscillator

The Overbought Oscillator scan type uses four technical indicators to ascertain whether a stock is in a downward price trend.

The indicators are Commodity Channel Index (CCI), Rate of Change, Relative Strength Index (RSI) and Williams %R.

A percentile score is calculated using data for the previous 12 months and the highest 250 results, displayed in descending order of their Score.

Oversold Oscillator

The Oversold Oscillator scan type uses exactly the same technical indicator criteria and results calculation as the Overbought Oscillator.

The Oversold Oscillator scan results are the lowest 250 results are displayed in ascending order of their Score.

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