Momentum

[alexchartfilter]

I want to find stocks which hit a low point and then 'bounce' back up. I search for stocks which reach a low and then 'bounce' back up past the upper Bollinger Band.

Such a stock is PGR:



How can I tell how much momentum this stock has? I don't want to buy it tomorrow, only to see that it starts going back down again.



Max

[alexchartfilter]

1. For stocks that hit a bottom then breached the out bollinger band try the following
52 week low within the last month
price crosses center line (bollinger band) within last 10 days
price breaches outerband (bollinger) within last 2 days

Relevant articles: http://www.chartfilter.com/screenernewsletter/nl5.htm (bollinger band screens)
http://www.chartfilter.com/screenernewsletter/nl6.htm (bollinger and macd)

also here are our prescreens using bollinger bands: http://www.chartfilter.com/ap/webPreset ... ns/view.do
After you run a screen, goto the free screener: http://www.chartfilter.com/freescreener.htm, and the form will be filled out as per the prescreen conditions, you can then add a 52 week low and any other price/volume conditions.

I suggest adding in a volume ratio 20 day greater than 1.2 (or 1.2 times higher than the 20 day average). With any good uptrend/downtrend volume should increase. (http://www.chartfilter.com/screenexampl ... eratio.htm)

2. As far as your stock goes, I suggest using an oscillator like RSI, Stochastics, Momentum, etc.. You should combine this with trendlines to confirm your signals.

Try applying the stochastics as listed in the previous post (or in our newsletter: http://www.chartfilter.com/newsletter/nl50/nl50.htm)

Alex