How to find a trending stock

[liopro]

Hi guys,
Being new to the stock market I'd like to ask you about the way you are looking for a strong trending stock.
I've seen some online screeners like Yahoo,MSN etc. which have plenty of search options,but the question is what kind of criteria do you use in order to find a stock which is strong trending RIGHT NOW.
I'm talking about both ways i.e up and down short-term trends.
Thank you

 

[saroq]

HI I am also new to trading so take what I say as possible assistance and not experience. go to StockFetcher.com - Stock Screening on the right hand side of the page you'll find Screens. Click on the drop down menue and select "Consecutive Up" This will give you a list of stocks that have moved up consectively for the last 4 or 5 days. I think you can change the filter by selecting view filter and changing the number of consecutive up days you want to set it to.

 

[liopro]

HI I am also new to trading so take what I say as possible assistance and not experience. go to StockFetcher.com - Stock Screening on the right hand side of the page you'll find Screens. Click on the drop down menue and select "Consecutive Up" This will give you a list of stocks that have moved up consectively for the last 4 or 5 days. I think you can change the filter by selecting view filter and changing the number of consecutive up days you want to set it to.

Thank you,I'll try it out.

 

[saroq]

I usually just try to trade one or more stocks a day. If I make a few hundred dollars I'm happy with that. So far I've just been listening to Bloomberg TV to get any news there but I also read a few other websites like Reuters, CNBC, MSN Money, Smart Money etc. What I've found the most useful is to screen for a stock that has the price I want, the volume of shares I need so that I can buy and sell quickly and has shown an increase of more than half a percent in the day's trade. I know I'll get critercised for this but this is what I do. I like shares like AAPL, POT, IBM because I'll buy 600 to 1000 shares at a time. I can usually count on a 50 cent to $1 rise at which point I sell and get out. The shares usually fall back after their upward momentum due to selling and profit taking. If the sentiment of the market is generally positive I'll buy again on the dip and ride it up again. I know lots of traders buy 10 different stocks at a designated buy in and sell price to spread their risk but I prefer to put all my eggs in one basket and watch that basket like a hawk. I don't know what your situation is and how much cash you're using so you'll have to work out your own system.

 

[liopro]

I'm going to use 25-30K,risking 0.5-1% each trade.My intention is to find a stock with upward/downward momentum and to enter a trade upon a breakout of the recent high/low.I've used to do this with futures,but it seems that futures market is generaly more chopy and it's nearly impossible to match your risk tolerance.

 

[bfirth]

liopro, welcome to the board im glad to see you are looking to only risk 0.5-1% per trade, if anything make it less. If this is the first trading you have done try just 100/200 shares and nothing over $40 per share.
Anything over that can get a bit jumpy and you can still get good 1$ moves on the 20/30 dollar range.
If you havent yet, have a read of Mr Charts thread "How To Make Money Trading The Markets" altho i think you may allready have.
To find stock during the day you need a scanner esignal's one is good but not cheap,
I did give marketgauge's HotScans a trial, it has tons of options, i found it a bit clunky, but it can find very precise setups, $25 dollar first month trial i think, and they have some videos showing what it can do.
I spent 8 happy months in a kibbutz at the base of the golan heights in my youth, i look back with fond memorys of israel, and not just because it was my introduction to friendly swedish girls
bry.

 

[liopro]

liopro, welcome to the board im glad to see you are looking to only risk 0.5-1% per trade, if anything make it less. If this is the first trading you have done try just 100/200 shares and nothing over $40 per share.
Anything over that can get a bit jumpy and you can still get good 1$ moves on the 20/30 dollar range.
If you havent yet, have a read of Mr Charts thread "How To Make Money Trading The Markets" altho i think you may allready have.
To find stock during the day you need a scanner esignal's one is good but not cheap,
I did give marketgauge's HotScans a trial, it has tons of options, i found it a bit clunky, but it can find very precise setups, $25 dollar first month trial i think, and they have some videos showing what it can do.
I spent 8 happy months in a kibbutz at the base of the golan heights in my youth, i look back with fond memorys of israel, and not just because it was my introduction to friendly swedish girls
bry.

Thank you very much for your reply.
Do you mean HotScans somehow assists to find what kind of criteria to use in order to find the needed stock or I should figure it out by myself?
If the latest is right what search optionb in your opinion is "in charge" of the power of short-term trend?
As too the kibutz I'm happy to hear someone is "in love" with my country
It's just great!!!

 

[Mr. Charts]

Shalom, liopro, and welcome to t2w
I use eSignal but if you are going for free scanners then it's not easy to find trending stocks intra day.
You can always check out the highest %age fallers and risers and eyeball the intra day charts.
Although fine in theory, many of the best movers do not have a recent history of being big movers. Often they come out of news stories and reversals off previous big moves. Often something sells off early in the trading day then reverses and trends beautifully for hours.
Feel free to drop me an email (NOT a PM) if you wish.
Richard

 

[liopro]

OK,let's say I'm not going to use the free scanners.I don't think it's a big deal to buy a month or two and to give it a try.But the question is still there.Which one of the search options corresponds to the strenth of the trend.

 

[bfirth]

well this is the tricky part, how do you define a trend, a trend on a 1 min chart could be a blip on a 1 hour chart. You may want to have a look at "Average Directional Index" (ADX) as a search option, or look for scans of 6/8/10 green candles in a row. There is no quick easy answer.
Start with a scanner, get to know it, then find some patterns that you want to trade and see what backtest scan can pick them up,
this is the hard work that divides winners/losers,
just remember there is never only one answer/way
bry.

 

[onestopfxsolutions]

HI I am also new to trading so take what I say as possible assistance and not experience. go to StockFetcher.com - Stock Screening on the right hand side of the page you'll find Screens. Click on the drop down menue and select "Consecutive Up" This will give you a list of stocks that have moved up consectively for the last 4 or 5 days. I think you can change the filter by selecting view filter and changing the number of consecutive up days you want to set it to.

Hello, where u get the "Consecutive Up", ho will you then know which one to go for? I am new I need all the help you can give.

 

[HaloTrader]

I find strong trending daily stocks through looking at the chart on the monthly and weekly and saying with no definition - Uptrend, Choppy, Downtrend. I then identify pullbacks and look at that particular markets characteristics and behaviour... Next pullback i will buy. Using an 100SMA to say the trend is over. Also, just drawing simple resistance and support on a chart and waiting for consolidations and then playing the breakout, therefore getting in a trend just as it starts.

If you are looking for intra-day strong trends, then the Esignal scanner is as good as it gets... You can scan for markets that are trading above their first hour high and then on these stocks for example, check out the daily chart... Is it strong trending up with no resistance or is it choppy or consolidating - Is current price above the weekly high? Monthly high? Yesterdays high? Three day high?

Then on the stocks you select wait for a specific setup for entering trending markets, defined before you even start trading and execute the plan.

Furthermore you can use the scanner to find current stocks making for example 20-day high or 5-day high and then look for trends in these stocks.

Or scan for stocks that have the largest % increase by 12pm or 4.30pm if you trade Us shares and then try catch the continuation of these stocks... For example, check price action - Is it strong trend? Check character, wait for small price pullback on lower timeframe...

Or if you want to enter momentum, check 5-minute chart. Buy, stop loss at bottom of the bar and trail (Mr Charts method)...

These are just some ideas for you.

Just look at the charts each night on a daily, which ones are making new highs?

Then on the daily watch these stocks for trends, for example, 8/21 EMA crossover, Or wait for retracement to an EMA to buy.

etc etc

 

[Fabrizzio]

Shalom, liopro, and welcome to t2w
I use eSignal but if you are going for free scanners then it's not easy to find trending stocks intra day.
You can always check out the highest %age fallers and risers and eyeball the intra day charts.
Although fine in theory, many of the best movers do not have a recent history of being big movers. Often they come out of news stories and reversals off previous big moves. Often something sells off early in the trading day then reverses and trends beautifully for hours.
Feel free to drop me an email (NOT a PM) if you wish.
Richard

My platform (TWS from IB) does give me the possibility to check for trending stock intraday on a set of criteria. I sort on volume and check for high gainers among them. It's a simple method and I am trying to find a better way to screen for good earners. D o you recommend some level of fundamental analysis?