- Last price > 5.00
- Daily Range Average > 0.75
- Average Volume > 350,000
- EPS %TTM change > 35%
As I go through each chart, I look for candidates for the following setups:
Price expansion setups - stocks that are currently printing NARROW RANGE cstick, INSIDE cstick etc.
Pullback/Retracement setups - stocks that pulled back to support areas, fib rectracement areas, moving averages
Price Momentum/breakout setups - stocks that are currently in basing, channeling, price pattern forming phase and might move in a day or two.
High volume price actions - stocks that moved with above average volume.
Based on these criteria, I compile a list of stock candidates each night. Some of these would also make my LEADING STOCKS list which consists of stocks that I think are leading the move in the current market cycle. These leading stocks are my top priority for day trading and trend-following because they would tend to be volatile and more liquid than the rest of my compiled list. The stocks that did not make it into the leading stocks ends up in my DAILY LONG/SHORT watchlist.
Here is a screenshot of the Ameritrade Analyzer.
These watchlists are also loaded into prophet.net so that I can easily access these lists from anywhere.
One feature of Prophet.net that I found very usefull is the ability to display all the mini-charts into a single page.
The last part of my preparation is entering the TRADE TRIGGER conditions for the stocks that I want to trade the next day. These triggers generates buy/sell orders when triggered.
After the market closes, I also go through my trades and record them in my journal. Early this year, I started using this blogsite for journaling but due to some unavoidable issues I have decided early this month to go back to my old way of keeping my journal. I am also looking at STOCKTICKR as a possible tool to journal my trades. I hear a lot of good things/review about it from other traders in the blogging community.