Screening and Selecting Swing and Momentum Stock Candidates
File type: PDF
Pages: pages
Introduction
In this ebook:
– How to find daily and longer-term trading candidates quickly
– How to screen them
– Strategies for trading them
How to find daily and longer-term trading candidates quickly
• Today, I’m focusing mainly on two types of trading candidates:
1. Short term (2-3 day) trading candidates
2. Longer term (a few days to a few weeks) trading candidates
• The main screening tool we are using:
https://www.tradingview.com/screener/ (Free)
• Tradingview’s screener is somewhat limited, but it’s still the best
available that I know of for the Malaysian stock market.
• By screening for very specific things, we can identify not just
candidates but also market conditions.
Screening Filters
• 5 EMA: This is essentially the faster move. The 5 is used because we want
relatively quick moves.
• 20 EMA: Usually, the slower moving average will be 3-6 x the faster one. In
this case, we use 20 because that is what the screener has available.
• Volume: Average (30 day) volume > 500K. You can adjust this to make it a
bit higher (e.g. >1M), but probably not much lower. This will save you time
if you want to be stricter with screening only high liquidity stocks that will
give you less trouble getting in and out.
– There are several volume options. You can experiment with using
different ones, but this is the one I use.
• Time interval: Once you save your filter preferences, you can apply the
same filter to different timeframes. This is very useful, as you will see. You
can apply the same concepts to discover trading candidates on different
timeframes.