Stock Screener: Breakouts From A Base
Filters
To find stocks that are breaking out from a long-term base, we need to screen for stocks that have started to trend and are making hew highs. Use the following filters.
Directional Movement: ADX Crossover
ADX crossing above 20 signals a stock that has started to trend.
Percentage Of Price High
Identify stocks making new highs by screening for 100% Minimum Percentage Of Price High.
Volume Filter
Add a Volume Filter to eliminate illiquid or dormant stocks.
Example
Yahoo [YHOO] turned up in a screen of the S&P 500 for stocks with 12 Month Price Move less than zero and Closing Price above the 100-Day EMA.
Mouse over chart captions to display trading signals.
- Enter when price respects the 100-day MA (not on the first cross-over).
- Look for confirmation from Twiggs Money Flow respecting zero -- signaling accumulation.
Author: Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.