52wk HIGH/LOW Trades

[TheBramble]

There was mention during one of the trading room sessions about the importance of the correlation between a directional trade stock price action and that of the market generally (DJ).

If we're in, or looking to go into a LONG (52wk HIGH directional trade) - what is the correlation we're looking for between the stock's price action and the DJ?

 

[Trader333]

When the Dow retraces we are interested to see how the 52 Wk Hi stock reacts. If it just pulls back slightly then using Level II we pick a price at which to enter the Long trade. If it falls faster than the retracement of the Dow then we dont take the trade. If it keeps heading up when the Dow retraces we wait for a pullback on the stock and then enter but again at a price determined by the Level II screen.


Paul

 

[TheBramble]

As a newish subscriber to IQ Feed (into QT), where can I find the 52wk hi/lo data - or does this require a totally separate feed/calc?

 

[Trader333]

Highlighted in red.


Paul

 

[TheBramble]

Thanks Paul.

But I guess the wider question (which I've posed in another thread here on TT today) is 'how do you know which stocks to put on your watch-list in the first place?'.

Searching for stocks heading toward their 52wk hi/lo requires pretty much all stocks be loaded into a watch-list. Clearly this isn't possible (is it?) so how do you pre-select those that are most worth watching.

Same goes for VWAP pairs I guess.

 

[Trader333]

Tony,

I suggest you start by using the list provided by Grey1 which is on this forum somewhere.

The other thing to do is create a list of stocks that meet certain criteria such as:

1) Valued at $20 to $60
2) Volume greater than 1.5 Million a day for last 3 months
3) Range of $1 or greater per day

There are many ways of setting criteria but the above are a good start.


Paul

 

[TheBramble]

I get the point you're making Paul and I'll have a hunt for that list.

I guess what I had in mind was a totally automated process, such that the process would dynamically search for stocks that came into the categories you mention as opposed to manually doing this on a regular (daily/weekly) basis.

 

[TheBramble]

For anyone else following this thread and interested in Grey1's stock selections (back then) it's at...

http://www.trade2win.co.uk/boards/s...29&highlight=list+AND+of+AND+stocks#post77429

 

[Salty Gibbon]

Searching for stocks heading toward their 52wk hi/lo requires pretty much all stocks be loaded into a watch-list. Clearly this isn't possible (is it?) so how do you pre-select those that are most worth watching.

Why can't you just use a scanner Tony to pick out stocks trading near their 52 week high / low ?

 

[Trader333]

This may help:

http://cbs.marketwatch.com/tools/marketsummary/screener.asp?exchange=15&view=4&lookup=Look+Up


Paul

 

[Salty Gibbon]

The problem I have with scanners is that I find it difficult to enter parameters which would equate to the set ups I am looking for.

Scanners are not very intelligent in that you cannot ask them direct questions. You have to coax them to come up with the result you are looking for by entering various details that may lead to the required set up.

 

[TheBramble]

Seems there is a very common need amongst us traders....

The first person to come up with an all-singing, all-dancing scanner that can easily be customised/utilised for various traders' needs is going to be onto a winner...