We go over some examples how to use filters to screen for stock ideas.
How to look for stocks that are in correction territory?
We used the marketchameleon predefined filters to scan for stocks in correction territory. The main filter was set to find stocks that are down more than 10% off the 52 week high price but not more than 20%. We also had a filter to narrow down stocks with higher market cap. Stocks that are down 10% off their 52 week high price are considered to be in a correction.
How to scan for stocks in bear market territory?
We used the marketchameleon preset filters to find stocks that are in bear market territory. The filter was set to screen for stocks that were down by more than 20% off the 52 week high price. Since the market at the time was trading near the 52 week high, these stocks are showing major weakness. Stocks that decline by more than 20% from their 52 week high price are considered to be in a bear market.
How to screen for stocks in an uptrend?
The marketchameleon preset filter looks for stocks in an uptrend. The uptrend was defined by the stocks price relative to its moving averages. The current price has to be above the 20 day moving average, the 20 day moving average is above the 50 day moving average and the 50 day moving average is above the 250 day moving average. In other words, the stock moving averages are all crossed in a bullish manner.