Scanning Six Ways to Find Stocks of Interest
We have a variety of scanners/filters on this site. List of Scanners & Filters
Stock scanner questions link. This scanner will scan thousands of stocks so you can more easily find charts with breakout patterns, stocks with attractive “setup” patterns, reversal patterns, and other “watch list” candidates.
Before we get into a description of this scanner, however, you should be aware of the fact that there are more than 6 other scanners on this website. For example,
1. One scanner finds stocks with the greatest momentum Momentum List
2. One finds stocks that just surged in volume is at Volume Surges
3. Also, see Focus on Setups to Reduce Risk.
Our other scanners focus on such things as gaps, pre-surge setups, Bollinger Band squeeze alerts (see the StockAlerts Scanner), breakouts (see the Breakouts page), and so on. This page describes a scanner that does not focus on these more specialized alerts. Instead, it is designed to detect the early stages of any significant trend.
To see how current these lists are, click on New or Old?
A closing price crossover of a moving average is a very uncertain signal and subject to whipsaws. By using a short moving average instead of the closing price, we reduce whipsaws considerably. Taken together, the signal generators in this scanner act as a kind of radar, detecting action wherever it occurs over a wide spectrum of sensitivity levels. These alerts are intended to draw your attention to potentially interesting developments very early in their development. You will still have to review the stocks visually and possibly even monitor them a few days to see if the situation under development calls for action on your part.
What Does This Stock Scanner Do?
People use scanners to look for gaps, new highs, breakouts, Bollinger band penetrations, or whatever. However, the bottom line is that these events are believed to be the beginning of significant price movement in the same direction (a new trend). If a new trend actually develops after one of these events, that new trend will produce a moving average crossover early in its development. New trends may be preceded by a price gap, a breakout through resistance, a Bollinger Band penetration, or whatever. However, scanning for moving average crossovers (with a broad range of sensitivities) can detect all new trends regardless of how they get started.
People use stock “filters” and “scanners” in an attempt to buy early when a stock is surging, starting a new trend, or undergoing a price reversal. Those are the bottom line purposes of most people who use scanners. The bottom line purpose of this scanner is to help you do precisely that–to find stocks that are just beginning a new trend. It scans thousands of stocks using 6 different moving average crossover systems having a variety of sensitivity levels, looking for crossover events in either direction. It generates an alert for each crossover, names the stock, gives its symbol, identifies the moving averages involved in the crossover, identifies the direction of the crossover, looks for volume surges, and gives price and volume surge information. We scan thousands of stocks using the following alert generators.
4x9x18 triple MA system (For details, see the R.C. Allen System page),
5×20 dual MA system (ala Donchian), (5-day MA crosses 20-day MA with a volume surge),
5×50 dual MA system, (the 5-day MA crossing over the 50-day MA with a volume surge),
10×20 dual MA system, (the 10-day MA crossing over the 20-day MA with a volume surge),
10×50 dual MA system, (the 10-day MA crossing over the 50-day MA with a volume surge).
The scanner’s systems form a detection “net” that should be able to detect any emerging trend at an early stage of development. The trader can therefore be alerted to the existence of an emerging trend by the more sensitive systems and he or she can review the stock immediately to see if it makes sense to take a position. Alternatively, the trader may opt to wait for the stock to register on another system with which he or she is more comfortable and evaluate or re-evaluate it then. Obviously, a stock beginning a trend will eventually register on all of these systems at one time or another as the trend develops.
Let’s say your initial interest is in finding Bollinger Band breakouts. While the crossovers do not find Bollinger Band alerts specifically (see StockAlerts for a scanner that will do that), they will detect any trend that results from a Bollinger Band breakout. Sometimes one of the systems in this scanner will detect a new trend before a Bollinger band penetration takes place. Of course, the more sensitive the system, the more subject it is to false signals. However, the more sensitive systems can give you a heads up about a developing pattern which you may or may not decide to act upon, and if you decide not to act, you might use a less sensitive system to alert you when you may consider the pattern to be more significant.
This is not to suggest that this scanner should be used as a substitute for the StockAlerts scanner. It does not find specific patterns like a Bollinger Band penetrations after a squeeze, or gaps, or the other specific configurations that StockAlerts finds. It was not designed to do those things. However, it does do a great job of finding new trends early. In other words, if a Bollinger band alert is generated by the StockAlerts system or a gap is reported and a trend actually develops, then this scanner should detect it at some point.
We display the price change so you can spot any price surges. Obviously, a crossover with a price surge is of greater interest than a crossover without a price surge. This metric can be used in conjunction with volume changes. We display a volume surge measurement by which you can screen your candidates. You can filter the results by requiring that the volume surge be of a certain magnitude.
Because the database that is being searched is large and because there are 6 different alert systems looking for signals, the list could be long at times. We therefore rank the alerts according to the volume surge that occurred on the day of the alert and select the top 100. For example, if 500 stocks generate a crossover alert, we would list only the 100 with the greatest volume surge. However, sometimes there are far fewer than 100 crossover events. For example, on some days the list might have less than 50 stocks on it. The volume surge filter that is used in a scan is posted on the report, but the minimum of the stocks on the list might be much greater than the minimum of the filter. A volume decrease undermines the credibility of an alert. The volume increase is posted for those who want to filter with stricter requirements.
Often a stock that has just had a cross of its moving average will also be in a “setup pattern.” Look for setup patterns that suggest a significant move is likely to take place soon (there are demonstrations of pre-surge “setups” near the bottom of the “Stock Alerts” page).
Top stock traders monitor a large “watch list.” The Stock-Scanner can be a great tool in helping a person create such a list. When a signal is generated and the stock chart is reviewed, it may be obvious that an immediate purchase or sale is appropriate. If not, the stock can be put on the “watch list” and monitored for a “trigger event” or some subsequent surge in price or volume that convinces you that it is time to act. In other words, Stock-Scanner can not only find stocks calling for immediate action, but it can also be a useful tool in building a watch list of stocks “on the verge.” It can “feed” a final stage “watch list” with likely candidates. It covers a large number of stocks, saves considerable time, and adds discipline to the search for investment candidates.
The Alert Table We Generate
If a stock’s 4-day MA price crosses from below to above its 9-day moving average and then its 9-day moving average crosses above its 18-day moving average with a surge in volume, an alert is generated that reads, “AllenU,” meaning “R.C. Allen Up Alert.” On the other hand, if a stock’s 4-day MA price crosses from above to below its 9-day moving average and then its 9-day moving average crosses below its 18-day moving average with a surge in volume, an alert is generated that reads, “AllenD,” meaning “R.C. Allen Down Alert.” Similar alert signals are generated for the other moving average systems. If three alerts are generated simultaneously, they are all reported. For example, the report might read “AllenU 5x20U 10x20U.” The percent change in price for the day (%∆) is in column 5. The percent change in volume for the day is in column 6. The 10-day momentum is under the heading “Mom.” The meaning of the other columns is self-evident. Look for a volume surge to validate price surges and crossovers (a price surge of 2% on a 50% decrease in volume is not very promising, but a price surge of 2% on a 50% increase in volume is). If there is a price surge on a crossover that is accompanied by a significant increase in volume, the situation is definitely worth a careful inspection. The following list is an out-of-date example and should not be considered current. The market had been in decline for several days when the list was generated. The purpose of the example is to show the layout of our reports, not to give current purchase candidates.
[Please note: Some of the other alerts crowd a number of R.C. Allen alerts off the list. So, if you are primarily interested in R.C. Allen alerts, see the R.C. Allen alert subscription. It can generate more than twice as many R.C. Allen alerts as this subscription.]
The purpose of the following example is to show the layout of our reports, not to give current purchase candidates.
The “Mom” column shows 10-day momentum expressed as a percent. If there are not 100 stocks that have generated one of our alerts, the list will be shorter than the one illustrated.
Note: the following table was created several years ago with Internet Explorer 9.0 which enabled us to quickly paste the tables with color and lines for borders and rows. We have tried to accomplish this with much newer versions of Chrome, Firefox, Safari, and Opera, but none could do that unless we first change the tables to JPEG files then up-load and resize them. All that takes extra time and we are already pressed to finish updating all reports, comments, and charts at a reasonable time. Therefore, the tables are similar, but without colors and lines.
|Updated: Fri p.m. After market’s close||Sym||Alerts (Min Vol Surge: 30)||Close||%∆||Vol%||Mom|
|AMERICAN MIDSTREAM PART||AMID||5x20D 5x50D||6.60||-42.86||2208.4||-36.84%|
|SPDR S&P GLOBAL NATURAL RE||GNR||5x20U||50.00||0.04||948.9||0.73%|
|VANECK VECTORS AGRIBUSIN||MOO||5x50U||63.32||-0.55||657.8||1.59%|
|SPDR BLMBRG BARCLY INTL||IBND||5x20D||33.84||0.15||588.6||-0.29%|
|LOGMEIN||LOGM||AllenD 5x20D 10x50D||77.85||-25.47||537.4||-29.48%|
|ISHARES JP MRGN EM LCL CRN||LEMB||5x50U||45.36||0.35||462.0||1.16%|
|CYS INVESTMENTS REIT||CYS||5x50D||7.32||-1.35||449.2||-3.05%|
|FIRST TRUST ENERGY ALPHA||FXN||5x50U||16.91||-1.00||445.3||-0.88%|
|SEA ADS REP CL A||SE||10x50D||13.46||-6.20||417.3||-15.40%|
|ISHARES GLOBAL ENERGY||IXC||5x20U||37.61||-0.05||410.4||0.00%|
|TEMPLETON GLOBAL INCOM||GIM||10x50U||6.28||1.13||378.2||1.78%|
|JUNIPER NETWORKS||JNPR||AllenD 5x20D||26.18||-7.33||292.7||-6.03%|
|GAIN CAPITAL HOLDINGS||GCAP||5x20D||7.06||-9.60||274.1||-6.74%|
|CARBONITE||CARB||AllenD 5x20D 10x50D||35.30||-3.55||271.6||-8.19%|
|POWER INTEGRATIONS||POWI||AllenD 10x50D||71.08||-5.99||257.0||-7.57%|
|WORLD FUEL SERVICES||INT||10x50U||27.05||20.97||255.8||26.28%|
|ISHARES RUSSELL 2000 VALUE||IWN||5x20D||132.73||-1.39||251.5||-0.93%|
|SID NACIONAL ADR REPSTG||SID||10x50U||2.45||8.41||249.9||19.51%|
|VOCERA COMMUNICATIONS||VCRA||AllenD 5x20D||31.00||-3.58||246.8||-5.29%|
|PROSHARES ULTRAPRO RUSS||URTY||5x20D||99.90||-5.42||225.0||-4.26%|
|IKANG HLTHCR GRP 2 ADR REP||KANG||AllenU||20.48||-0.15||198.8||0.20%|
|ZILLOW GROUP CL C||Z.O||5x20D||57.78||-6.78||195.9||-8.01%|
|SCHWAB EMERGING MARKETS||SCHE||5x50U||26.89||0.41||195.6||2.28%|
|ISHARES MSCI AUSTRIA||EWO||5x50U||23.50||0.43||187.1||3.16%|
|RADIANT LOGISTICS||RLGT||5x20D 5x50D||3.93||-1.50||178.3||-7.53%|
|INVSC TAXABLE MUNICIPAL||BAB||10x50D||29.37||0.17||156.7||-1.11%|
|ZYNGA CL A||ZNGA||AllenD 10x50D||4.05||-3.80||154.1||-6.68%|
|ZYNGA CL A||ZNGA||AllenD 10x50D||4.05||-3.80||154.0||-6.68%|
|THL CREDIT||TCRD||AllenD 5x20D||7.87||-1.99||152.4||-3.32%|
|NAVIOS MARITIME PARTNERS||NMM||5x20D||2.01||-0.99||150.0||-2.43%|
|FRST TRST ISE REV NTRL GS||FCG||5x20D||22.85||-3.18||145.0||-3.22%|
|NATIONAL OILWELL VARCO||NOV||5x50U||46.91||10.32||143.1||6.04%|
|PROVIDENT FINANCIAL SER||PFS||5x20D||26.23||-5.27||133.6||-3.81%|
|ABERDEEN INCOME CREDIT ST||ACP||5x50U||14.00||0.07||130.9||0.57%|
|DIREXION DAILY EMERG MRKT||EDZ||5x50D||46.33||-0.88||127.7||-5.83%|
|DYNEX CAPITAL REIT||DX||AllenU 5x20U||6.48||0.31||126.4||1.41%|
|AUTOHOME ADR REP CL A||ATHM||5x20U||102.24||-0.95||124.4||1.94%|
|SCHWAB US TIPS||SCHP||10x50D||54.45||0.15||117.9||-0.93%|
|BRT APARTMENTS||BRT||AllenD 5x50D||12.63||-3.44||114.4||-9.46%|
|SPDR S&P BIOTECH||XBI||AllenD||94.97||-2.73||108.6||-5.56%|
|500.COM ADR REP 10 CL A||WBAI||5x20D||13.27||-10.09||108.6||-6.35%|
|ISHARES S&P MID CAP 400 GR||IJK||5x20D||227.47||-1.19||104.8||-1.43%|
|BT GROUP ADR REP 5||BT||5x20U||15.48||4.52||92.8||4.74%|
|CGI GROUP CL A||GIB||5x20D||63.86||-0.75||89.0||-3.15%|
|FLEXION THERAPEUTICS||FLXN||AllenD 5x20D 10x50D||24.01||-5.58||86.4||-11.04%|
|ARES MANAGEMENT||ARES||AllenD 5x20D 10x50D||20.90||0.24||86.1||-2.56%|
|GLOBAL X SUPERDIVIDEND||SDIV||10x50D 5x50D||20.87||-0.62||85.6||-1.14%|
|PIMCO ACTIVE BOND||BOND||5x50D||102.82||0.17||85.5||-0.33%|
|ELECTRONIC ARTS||EA||AllenD 5x20D||133.81||-5.70||85.1||-10.03%|
|GRUPO FINANCIERO ADR REP||GGAL||AllenU||36.45||-0.76||83.8||4.98%|
|BANCO BILBAO VIZCAYA ARGE||BBVA||5x20U||7.18||1.84||82.4||2.28%|
|INVSC DB COMMODITY INDEX||DBC||5x20U||17.25||-0.40||82.3||1.29%|
|VNECK VCTR EMRG MKT HG||HYEM||5x50U||23.08||-0.04||79.6||0.87%|
|CODEXIS||CDXS||AllenD 5x20D 5x50D||13.70||-7.74||78.2||-13.02%|
|ARRIS INTERNATIONAL||ARRS||5x20D 5x50D||25.19||-1.76||76.7||-4.69%|
|LEGGETT & PLATT||LEG||AllenD||44.09||-0.41||75.3||-3.46%|
|BP PRUDHOE BAY ROYALTY||BPT||10x50D||27.50||-2.14||74.2||-10.42%|
|CHINA PETRO & CHEM ADR REP||SNP||5x50U||95.23||1.00||70.5||5.49%|
|AGREE REALTY REIT||ADC||5x50D||52.21||-2.21||70.1||-3.51%|
|MICROSTRATEGY CL A||MSTR||5x20D||129.16||-5.98||68.1||-4.91%|
Did You Know?
The Valuator does not report PE and PEG ratios based on last year’s obsolete data. Nor does it try to look ahead a full year (analysts are notoriously inaccurate when they try to estimate a year ahead). Instead, the 1-year earnings estimates it uses for computing PE & PEG ratios look ahead only about 6 months (6 months past + 6 months future). We believe this is far more accurate. Also, the market tends to look ahead about six months.
The Stops tool computes trailing volatility-adjusted stop losses that can be adjusted to match your tolerance for risk and investment time-horizon. Let the stock have just enough room for its “normal” fluctuations as it climbs (each stock is different), but cut losses quickly when it declines more than is “normal” for that stock.
StockAlerts can help you find stocks for your watchlist that are about to surge.
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