Chartist Screening techniques

[Terrytibbs]

Hi all

New to the forum, currently educating myself on technical analysis and candlestick chart reading in particular.

One thing really interests me - how do Chartists screen stocks? Do they need to look at the chart for each stock in an index or do they whittle it down through some key technical criteria?

Many thanks
Tt

 

[tomorton]

There's dozens of TA criteria you could use. The most basic would include, in order to buy -
a) is the stock price rising over the last 1mth, 3mths, 6mths, 12mths etc.?
b) is price above the 200EMA?
c) is the industry sector index also rising?
d) is the main stock index for this market also rising?

Then you can complicate each one. How much in % has it risen? How long has it been above the 200EMA? Is the 200EMA sloping upwards? Is price also above the 50EMA? Is the 50EMA above the 200EMA?

There's no end to this sort of filtering, but it has to respond to your style of trading and to your selected strategy to be a profitable use of time.