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It is well known fact that a stock that is strong relatively to other stock continue to be stronger. Here is a watch list that filter for strong stocks and list those stocks that breakout from 4 weeks high. Many consider four week cycle as an important cycle in stock market.
This watch list is suitable for those who like to trade aggressively.
Mr Norman G Forsback remarks, in his well known Book Stock Market Logic, that this strategy (ie,buy high,sell higher) works well in rising market.
In this screen, ROC for 30 day is used to find relatively strong stock. This select those share that have grown more than 30% percent in the last 30 days.This time period of 30 days can also be reduced further to spot the stock that are in up mode recently. You may very 30% criteria as per your preference.
Once a stock break the four weeks high, It usually surge for the next resistance level.An stop loss buy order above one point above the high of four week high may put in the fast trend.
This watch list is suitable for those who like to trade aggressively.
Trading financial instruments, including foreign exchange on margin, carries a high level of risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.