Scanning Software and Techniques, page-2

Hi Onthebeaches,

it depends on your trading style as to what sort of filter/s you are going to be appyling. Scanning techniques? How long is a piece of string... I subscribe to Momentum Trading as a method, so I am looking for stocks that are going up. Not that 'are about to go up', but that are in the process of going up. So there are some criteria for this that I am looking for.

-They are about the SMA50.
-They are above the Bollinger bands (that I have adjusted away from default settings)

And then a few more things on top of that to do with price and volume. When you add all of these criteria up, I will get a subset of about 30-50 stocks on the ASX. From this set, I can look over with a human eye which stocks 'look strong' with regards to their candles, and that will give me a set from about 1-10 stocks. On some days, you get none. So you don't trade at all (the really important bit as on these days, if I was placing a trade, I would just be losing money).

I have been putting together a website that contains the basics of using Trading software to sort out stocks on the ASX. Have a look at this page and it should give you some ideas about how to setup your scanning parameters:

http://donktrade.com/reading

The Chartist offer a free eBook for signing on to their newsletter which I think is a great starting point. At this point you don't need to start paying for courses, just keep on reading and asking questions and you will get there. Good luck with your trading.