This is a description of online stock screener that can be used as a second option for stock traders. This is bearish stock screener looking for top stock picks for bearish type of trade. This one combined with the previously described bullish 52-week-high screener creates complete set that can produce enough profitable picks for short-term traders.
52-week-low stock market screener
This market filter looks for top stock picks that are located near their important support level. This support is defined as a one-year low level. Here is an example of such a pick.
There are these main conditions for such a bearish scanners:
• Close price is below the 20-day EMA and also below the 50-day EMA
• 20EMa is below 50EMA
• Average volume is above 300,000
• The price is now not far from the 5% of the 52-week low
• There was some above-average volume during the last 20 days
• The 52-week high was achieved at least three day ago or more.
• Share price is min. $15 USD
This is a code description for Amibroker, but similar rules can be set on sites like Stockcharts.com or FinViz to find top picks.
Cond1= Close < EMA(Close,20);
Cond2= Close < EMA(Close,50);
Cond3= EMA(Close,20) < EMA(Close,50);
Cond4= MA( Volume, 20 ) > 300000;
Cond5= Close <= (LLV(Close,240)*1.05);
Cond6= Sum(Volume > MA(Volume, 20), 20);
The free filter described above can be modified to scan for breakdown of any length of base. It is a description of the 52-weeks base above, but you can easily modify this code to half a year or a three-month base for your picks.
Breakdown trades are very profitable opportunities that can be traded even in bullish market. The fear is much stronger emotion then greed and drops in the price could occur very quickly. Such top picks are good moneymakers.