We continue our discussion how to use marketchameleon stock screener
How do you screen for stocks that are breaking below one day support or above the resistance?
We can use the stock screener to search for stocks that are moving up above its resistance level or fall below its support. We define the support/resistance levels by a 1 standard deviation move. This helps identify stocks that are starting to move beyond the expected daily range based on historical volatility.
How do you screen for stocks based on technical trends?
To look for a technical trend, you can use moving averages to help detect how a stock is trending. In this example, we assign a technical indicator based on how the stock has been performing relative to its moving averages. For example, we define that a stock is on an uptrend if the current price is 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. A downtrend would be vice versa. This makes it is easier to group stocks and perform a scan for a technical indicator.