I would like to share something interesting I found when trying to find high momentum stocks. Please see the other thread I posted under Indicators labeled "Color coded watchlist columns."
https://usethinkscript.com/threads/color-coded-gap-watchlist-columns-for-thinkorswim.2977/
The RV1 value is very important in finding the strong stock of the day. When I ran my gap scanner around 9:32am, I found that the stock with the highest RV1 value tends to be very strong. For example, CBLI on 6/26, PDSB on 6/29, POLA on 6/30 and MYOS on 7/1. Each stock was a big winner on that day. So make sure to keep track of the gappers with the highest RV1 for big gains.
Also, I want to share a momentum scan that helps identify stocks early that are ready to run. Just create a scan with the following conditions:
shared scan link: http://tos.mx/!8oOjN6xG MUST follow these instructions for loading shared links
Scanner's conditions:
Last: 0.5 to 15
% Change: 10% to No Max
Volume: 500,000 to No Max for less results OR 100,000 to no max for more results
Shares: 1 to 70,000,000 low float or 300,000,000 all float
Custom Study Filter with Aggregation set to D (day) using this code:
Study Filter - (under Volume) Unusual Volume, Current bar's Volume increased at least 40% from its typical average over 60 periods and Aggregation set to D (day)
The RV1 only shows after 9:30 since the volume is accurate after 9:30 only. Also, the ticker with the highest RV1 doesn't always rise up after 9:30 since the move sometimes happens in premarket. It is worth tracking the top 3 tickers with the highest RV1 for spikes but like everything else, it is not always guaranteed that they will spike after 9:30. The other scan is good since it provides an option if the morning Gappers fail early.
So it's best to wait until 9:30 for these. Wait for a stock to break VWAP from below and hold as long as it is above VWAP or bounces off it.
Go for the highest volume, highest RV, and stock with room to run. When you buy it, you can hold it as long as it stays above VWAP
Sometimes, the first optimal entry point is missed. I use only the 9EMA and VWAP with the 1min chart. Wait for pullback to 9EMA for entry. That works well.
Here is my analysis:
https://usethinkscript.com/threads/...canner-for-thinkorswim.3002/page-4#post-29083
must verify low float, catalyst, and highest RV1. I tend to keep stop loss around 5% of my entry price. So if you buy at $3.80 then stop would be around $3.60. 15% stop is too high.
Focus on low float (<10M) with a good catalyst if possible. Then once a gapper comes up on my scan, focus on the chart setup. Look for stocks with bullish patterns like rounding bottom, VWAP break, or bullish flag/pennant. Also, stocks that rise gradually are better than fast spikes followed by fast drops. Finally, look at RV1 value. If the best stock has the highest RV1, then that is a big plus. Keep in mind that sometimes the best stock will not have the highest RV1 but if it does, then that is a plus. I noted that if the best stock has the highest RV1, it tends to do bounces off VWAP after the initial AM spike. EQ did the same thing on 7/13. Most of the time, one of the premarket gappers will hit my scan with a good setup and be the big winner. Then, sometimes, the AM gappers will fail and you have to pick one from the scan.
One last point to keep in mind. Don't feel compelled to trade every single day. Some days, there will not be a good stock to trade and it's best to not trade on such days. People lose money because they force trades or feel like they have to trade every single day. The key is to go for good stock setups but skip days where you don't feel comfortable with the stock or the setup.
On 6/30, it showed OXBR and APEX; and on 7/1, it showed SUNW, LKCO, and MMLP before the big runs. This scan helps investors shift their focus from the early gappers that sometimes fail to low price, low float stocks that make their moves later in the day. This scan works best on stocks that show up before 11:30am and RV1 values show up only after 9:30am.
RVOL Indicator and Watchlist Column: https://usethinkscript.com/threads/rvol-relative-volume-indicator-watchlist-for-thinkorswim.1014/
https://usethinkscript.com/threads/color-coded-gap-watchlist-columns-for-thinkorswim.2977/
The RV1 value is very important in finding the strong stock of the day. When I ran my gap scanner around 9:32am, I found that the stock with the highest RV1 value tends to be very strong. For example, CBLI on 6/26, PDSB on 6/29, POLA on 6/30 and MYOS on 7/1. Each stock was a big winner on that day. So make sure to keep track of the gappers with the highest RV1 for big gains.
Also, I want to share a momentum scan that helps identify stocks early that are ready to run. Just create a scan with the following conditions:
shared scan link: http://tos.mx/!8oOjN6xG MUST follow these instructions for loading shared links
Scanner's conditions:
Last: 0.5 to 15
% Change: 10% to No Max
Volume: 500,000 to No Max for less results OR 100,000 to no max for more results
Shares: 1 to 70,000,000 low float or 300,000,000 all float
Custom Study Filter with Aggregation set to D (day) using this code:
plot scan = close >= (open*1.04);Study Filter - (under Volume) Unusual Volume, Current bar's Volume increased at least 40% from its typical average over 60 periods and Aggregation set to D (day)
The RV1 only shows after 9:30 since the volume is accurate after 9:30 only. Also, the ticker with the highest RV1 doesn't always rise up after 9:30 since the move sometimes happens in premarket. It is worth tracking the top 3 tickers with the highest RV1 for spikes but like everything else, it is not always guaranteed that they will spike after 9:30. The other scan is good since it provides an option if the morning Gappers fail early.
So it's best to wait until 9:30 for these. Wait for a stock to break VWAP from below and hold as long as it is above VWAP or bounces off it.
Go for the highest volume, highest RV, and stock with room to run. When you buy it, you can hold it as long as it stays above VWAP
Sometimes, the first optimal entry point is missed. I use only the 9EMA and VWAP with the 1min chart. Wait for pullback to 9EMA for entry. That works well.
Here is my analysis:
https://usethinkscript.com/threads/...canner-for-thinkorswim.3002/page-4#post-29083
must verify low float, catalyst, and highest RV1. I tend to keep stop loss around 5% of my entry price. So if you buy at $3.80 then stop would be around $3.60. 15% stop is too high.
Focus on low float (<10M) with a good catalyst if possible. Then once a gapper comes up on my scan, focus on the chart setup. Look for stocks with bullish patterns like rounding bottom, VWAP break, or bullish flag/pennant. Also, stocks that rise gradually are better than fast spikes followed by fast drops. Finally, look at RV1 value. If the best stock has the highest RV1, then that is a big plus. Keep in mind that sometimes the best stock will not have the highest RV1 but if it does, then that is a plus. I noted that if the best stock has the highest RV1, it tends to do bounces off VWAP after the initial AM spike. EQ did the same thing on 7/13. Most of the time, one of the premarket gappers will hit my scan with a good setup and be the big winner. Then, sometimes, the AM gappers will fail and you have to pick one from the scan.
One last point to keep in mind. Don't feel compelled to trade every single day. Some days, there will not be a good stock to trade and it's best to not trade on such days. People lose money because they force trades or feel like they have to trade every single day. The key is to go for good stock setups but skip days where you don't feel comfortable with the stock or the setup.
On 6/30, it showed OXBR and APEX; and on 7/1, it showed SUNW, LKCO, and MMLP before the big runs. This scan helps investors shift their focus from the early gappers that sometimes fail to low price, low float stocks that make their moves later in the day. This scan works best on stocks that show up before 11:30am and RV1 values show up only after 9:30am.
RVOL Indicator and Watchlist Column: https://usethinkscript.com/threads/rvol-relative-volume-indicator-watchlist-for-thinkorswim.1014/
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