Hello All,
Hopefully there are people out there still trading this method or know the inner details of the method. I have read through many threads, taking many notes but I have a few questions as to some details of the method. This method makes sense in my head but still I have questions. From my studies here are the general principles on how to cull a universe of stocks from reading Jack's posts, Sypder's posts as well as others.
1. RS/EPS 90 or better, adjusted to achieve a list of around 100 or so stocks.
2. Filter the list looking for stocks priced between $10 and $50. Filter by float for stocks between 5m and 60m shares. Filter by avg volume being greater than 200k shares. Also filter by stocks that have made 5-20% moves or greater in the last 6 months spanning over 6-8 days.
3. Sort by % volume change.
4. Create three lists comprised of 10 stocks. One list is 7s which are gathered from the top of the list being the greatest volume % change with an increase in price. Another list is 0s which come from the bottom of the list. The final list being 1s that come from the middle of the list around the 0% volume change (generally 5 above and 5 below that area).
5. Rank these stocks using the assessment sheet that was provided in other threads. This tells you the strongest stocks to trade and also breaks any ties if multiple signals are generated.
There are more details to the method such as risk management, money velocity, the entry tactics etc. but I'll stop there for now not to make this post too long. I have some questions based on the above.
Questions:
1. I have been playing around with IBD e-tables examining the RS and EPS rank but I do not like that I don't have the ability to really filter what I'm looking for. Using IBD only returns so many stocks and in varying price ranges. Certainly not 100. Are there any other sites (paid or free) where I can obtain the RS/EPS ratings? I've searched and searched and have yet to find anything suitable for this method. A lot of what was used in the past is no longer available for this method.
2. The volume that should be used in the sort is the 65 day average? It's not the current day's volume or the total average? Also 20% moves, is that close to close or low to high? From what I've read it's also only up swings not both up and down swings? Basically what constitutes a move? How much pullback is allowed before "the move" starts over, changes direction etc?
3. no questions there
4. I've also read that Jack scored the stocks in a binary fashion (1 or 0) with the multipliers on price change x4, volume change x2 and A/D x 1. My questions here are what denotes price and volume change? Is a penny increase in a stock considered price change, 1 share greater a volume change or do we need to see greater change? Price change I also assume is close to close? Also I've read the 1s list can also continue up from the bottom vs the middle portion of the sort but I suppose it's somewhat near the middle anyway. As far as the scores go, do they change daily? Based on price and volume change, a 7 today could be a 3 tomorrow etc etc. My assumption is that they do so how does that effect the trading system? Also what is used to assess accumulation and distribution. I read that Worden's BoP indicator was used? Is there another method besides using that indicator. I use ToS and they have an accumulation and distribution indicator. I've also read that the absolute value of the BoP indi was used and also the actual change in values. I can work through that but what would be the best way to measure acc/dist?
Those are basically the questions I have as of now. I ask them because I can most likely code all of this but need the appropriate answers before I can move forward on that. I am going to continue to read and study but my eyes hurt and my brain is sort of turning to mush scouring all of the threads so I figured I'd ask. The answers are probably simple so if anyone out there would like to throw me a bone I'd really appreciate it or even just point me in the right direction. Thanks a bunch in advance for any help.
Hopefully there are people out there still trading this method or know the inner details of the method. I have read through many threads, taking many notes but I have a few questions as to some details of the method. This method makes sense in my head but still I have questions. From my studies here are the general principles on how to cull a universe of stocks from reading Jack's posts, Sypder's posts as well as others.
1. RS/EPS 90 or better, adjusted to achieve a list of around 100 or so stocks.
2. Filter the list looking for stocks priced between $10 and $50. Filter by float for stocks between 5m and 60m shares. Filter by avg volume being greater than 200k shares. Also filter by stocks that have made 5-20% moves or greater in the last 6 months spanning over 6-8 days.
3. Sort by % volume change.
4. Create three lists comprised of 10 stocks. One list is 7s which are gathered from the top of the list being the greatest volume % change with an increase in price. Another list is 0s which come from the bottom of the list. The final list being 1s that come from the middle of the list around the 0% volume change (generally 5 above and 5 below that area).
5. Rank these stocks using the assessment sheet that was provided in other threads. This tells you the strongest stocks to trade and also breaks any ties if multiple signals are generated.
There are more details to the method such as risk management, money velocity, the entry tactics etc. but I'll stop there for now not to make this post too long. I have some questions based on the above.
Questions:
1. I have been playing around with IBD e-tables examining the RS and EPS rank but I do not like that I don't have the ability to really filter what I'm looking for. Using IBD only returns so many stocks and in varying price ranges. Certainly not 100. Are there any other sites (paid or free) where I can obtain the RS/EPS ratings? I've searched and searched and have yet to find anything suitable for this method. A lot of what was used in the past is no longer available for this method.
2. The volume that should be used in the sort is the 65 day average? It's not the current day's volume or the total average? Also 20% moves, is that close to close or low to high? From what I've read it's also only up swings not both up and down swings? Basically what constitutes a move? How much pullback is allowed before "the move" starts over, changes direction etc?
3. no questions there
4. I've also read that Jack scored the stocks in a binary fashion (1 or 0) with the multipliers on price change x4, volume change x2 and A/D x 1. My questions here are what denotes price and volume change? Is a penny increase in a stock considered price change, 1 share greater a volume change or do we need to see greater change? Price change I also assume is close to close? Also I've read the 1s list can also continue up from the bottom vs the middle portion of the sort but I suppose it's somewhat near the middle anyway. As far as the scores go, do they change daily? Based on price and volume change, a 7 today could be a 3 tomorrow etc etc. My assumption is that they do so how does that effect the trading system? Also what is used to assess accumulation and distribution. I read that Worden's BoP indicator was used? Is there another method besides using that indicator. I use ToS and they have an accumulation and distribution indicator. I've also read that the absolute value of the BoP indi was used and also the actual change in values. I can work through that but what would be the best way to measure acc/dist?
Those are basically the questions I have as of now. I ask them because I can most likely code all of this but need the appropriate answers before I can move forward on that. I am going to continue to read and study but my eyes hurt and my brain is sort of turning to mush scouring all of the threads so I figured I'd ask. The answers are probably simple so if anyone out there would like to throw me a bone I'd really appreciate it or even just point me in the right direction. Thanks a bunch in advance for any help.
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