How I hunt for stocks, looking for strength

I am a big believer in using stock scans in my trading preparation. It’s not that I don’t have a wide range of stocks I already follow because I do – it is more about finding stocks that are in a good entry spot (like at a Breakout point for example).

One scan I use frequently throughout the week is this:

  • Within 3% of a 52-week High
  • Market Cap $300 million plus
  • Can be above or below 50 SMA (but usually above)
  • Above 200 SMA
  • Current volume over 300K
  • Price above $5

You can run the scan yourself here

On the weekends I add a filter to this scan: “Week Up” (which means it is up for the week too). This will usually cut the original scan results in half giving me a 100-150 ticker list to review. Most of the tickers in this result list are going to look like great Breakout setups so you can narrow down based on your own criteria.

Remember, only Price pays.

 

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