Criteria to find trending/breakout stocks

Orange Juice

Junior member
12 0
What are some criteria when screening stocks to find trending or breakout stocks? I assume you look for a certain percentage move within a certain time period, what percentage and time period would that be? Any other suggestions are appreciated.

Thanks guys.


Junior member
42 3
I like to start by assessing the strength of the overall market. Trend, ADX over 30, and I like to see New Highs minus New Lows. A graph of that can sometimes give divergences from the trend, alerting me to a possible change in trend soon.

Then I consult my list of sectors ('industry groups' to Americans) with the general index in the list. I rank them by performance over 1, 5 and more days and note which sectors are consistently at the top of the list. These are outperforming the market.

Then I scan the stocks. You mentioned two criteria:

For breakouts, just scan for new recent high, judged over, say, a two-month period.

For trend, you could perhaps scan for stocks with ADX reading 30 or more.

Pick from those in the scan which belong to your outperforming sectors.

Do all this inversely in a downward trending market, obviously.

I'm sure there are better and more specific scans you can run, but to be honest I'm just not good enough at writing formulas for them (yet). In time ...

Good hunting.


1 0
I like to scan the MACD crossover. I want to see the line cross above the signal line. Then I want to see the histogram moving in an upward direction. If the slow stochastic is positive, I look for a pull back to get in.
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