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Mark Deaton here with your follow-up to Module 2. Going to cover a few things in this video and try to keep it short and sweet. We re going to look at Stock Fetcher and how we can use Stock Fetcher to scan stocks. I think it s $8.95 a month but before you go spend that money make sure your platform or your solution doesn t work. Even if you have to call somebody and have them to show you how to do it, do it. A lot of these platforms are willing to go the extra mile to help you figure things out because they don t want to lose your business. If you find a platform that gives you what you re looking for and the end result is you shift your money over there, that s no good for business. I m going to also show you how to look at 2 time frames. There s nothing unusual about what I m going to show you other than just the basics because what you re looking for on one time frame, you re looking for on the other time frame. The same exact setups we re looking for. They just come a little faster on the smaller time frames than they do the bigger ones. If we have a setup that is forming on a daily chart and we re looking at a 15 minute stock chart, we might have to wait for our setup to form on that intraday time frame. We re going to look at a couple of futures and Forex charts just for the sake of satisfying some of you guys that trade full time futures and Forex. It s the same stuff. The only thing is you really can t scan these other time frames 2
The first thing we re going to do is build this original scan we made which is price close is above the moving average 55 (EMA). Prices high is greater than the 2 period EMA and the 6 period EMA is less than the 55 EMA. This gives us a potential breakout on that bearish/bullish line which is that 55 period moving average. It clusters us in that area with a reasonable likelihood that we are bullish. Notice we did add a filter criteria for price because we were getting a bunch of $0.25 and $0.30 stocks and that wasn t what we were looking for. This is the scan we re going to go build: Go to www.stockfetcher.com log in or get a new account. Click on New Filter Go to Filter Builder (Far right) Click on Add Filter In the Indicator box enter Close 3
Under offset choose 1 day ago (You can change offset to zero for today but for purposes of this video we are looking at yesterday for comparison purposes) Click on Above and choose Crossed Above Under Value or Indicator choose EMA (55) Finally change offset to 1 day ago Click Add It added an and clause which I m going to delete. Go to the end of the code and hit enter. Go back to Filter Builder and add the second part of this filter. (The high is greater than the moving average 2) Under Indicator type high Under Offset select 1 day ago On Crossed Above (orange box) select Is above Under Value or Indicator choose EMA(50) but change the number to 2 Finally change offset to 1 day ago Click Add Next we have moving average 6 is below the 55. That s how we put us as breaking through. Under Indicator type EMA (6) Under Offset select 1 day ago On Crossed Above (orange box) select Is below Under Value or Indicator choose EMA(50) but change the number to 55 Finally change offset to 1 day ago Click Add We could do a price scan. Let s add a $10 filter. Click Add Filter Under Indicator type Price Under Offset select 1 day ago On (orange box) select is above Under Value or Indicator choose type in 10.00 Finally change offset to 1 day ago Click Add Let s sort by volume. 4
Let s buzz through these. That s how we us Stock Venture. I can also delete the price one because if I have high volume I don t usually need that kind of filter. Click Fetch Stocks. We went from 44 to 109. Always make sure you go grab a year or two instead of three months or six months. 5
Clicking through. What we re looking for now is predictability, fluidity. We re looking for swing structure violations to be limited. Nice aggressive move up, but certainly due for a pull back after three big white candles like that. When you find something that looks good you save it in a watch list or trade it if it s tradable. One thing I didn t build on the chart is my system. We re looking at Bullinger Bands with a couple of moving averages so you re not seeing the 50 or the 20 right now. This stock if you look at it closely, it s sideways for a while. In the market conditions that we re in, I m not looking for something to start unless it has real aggressive, beautiful swing structure beforehand that gives me some indication of strength. 6
Not really interesting in this stock as it s only $1.02 but with a breakout like that I would potentially keep an eye on this over the next few days. Let s look at this real quick. Huge pushdown and this came up and instead of making a lower low, coming down below this low right here. It made a higher low and then price went to move up and take this out, which is bullish. Other than this new minor bullish trend, there s nothing bullish about this stock right now. That s how you transfer your scans over to Stock Fetcher. 7
Using Multiple Time Frames. I would like to touch on using multiple time frames. Right now I m on Lite Suite Crude. Let s do a 15 minute-1 minute for Lite Suite Crude. There s nothing, it s clearly moving down. To join this trend we need a retracement to this fan. I m going to grab the high and come down to the low and if this thing retraces and it reaches 38-50% or even 61.8 and begins to move down again, we could have an interesting setup. Let s go to a five minute and look at it a little closer. We can see retracements on this time frame beginning to take place. We came down to this level and slightly retraced to the fan. We pushed down again and doing a minor retracement now. You could be on this time frame and looking for those retracements. 8
You jump back to the 15 minute and you know you re overextended to the downside. We know this is due to some form of a correction to the upside. Always look at the support levels to the left. The 5 and the 15 minute give you a nice view. Once we take out this move right here (far right), I would want to watch it on the 5 minute chart. On the 15 minute chart if we come back to the left, we have price moving up, pulling back to our 55 and then moving up again. If you re watching your 15 minute or longer time frame, you re looking for your setup. 9
Let s go back to this candle (12 p.m. 5/17). Go to a five minute chart. Notice we re doing the same thing. You set your threshold into your trade long. In this we re probably about $100 with one contract at risk. This went on to go 1, 2, 3, pullback 4 and a high and drop back down to 2 and took off to the upside. Once we move up again we want to put a stop above that correction in that higher swing low. Once we re moving up and beyond that retracement/pullback, we put to put in a stop. Price comes up, pulls back again and starts to take off. Once it begins to take off add another stop. Price moved up again, based sideways. Notice the moving averages are getting flat. We can look for the setup on the 15 minute chart. The reason you want to use that longer time frame is because it s giving you a longer term picture of the potential that s on the table. If you have a higher with slow and a nice pull back right here, there is 60 points or ticks. I want to show you a scan idea that I have. We ll call it TR 2.0 55 breakout greater than 10 bucks. What if we said at close a day ago is less than the 12 EMA but today the high is above the 2? Click add study filter Under Study enter custom Edit the ADX crossover Click Price Close Less than Moving Average Under Offset enter 1 Under Inputs in the Length field enter 12 Click Save 10
Close is less than the moving average 12 a bar ago. If I set this to daily, this will be yesterday. If I set it 15 minute it will be a bar ago. Click Okay Add Study Filter Change ADX cross to Custom Click Edit Price High Select Greater than Select Exponential moving average In the Inputs section change the Length to 2 Offset: 1 bar. Click Save. High is greater than the 2 period EMA 1 bar ago, but the close is less than the 12. 11
FCX. The close a day ago is less than the 12. Today s high is above the 2. Let s look at the characteristics. The high is above the 2. A dashed line is the 2. The low is below the 55 and the 6. FB&F. We have the close one day ago is less than the 12. Today s high is above the 2. That scan is a good idea but it s going to bring up way too many stocks. 12
Go back to a 15 minute. The high is above the 2. The low is below the 6. Let s say the close is above the 55. I m going to set that up real quick. We have the high is greater than the 2 period exponential moving average. The low is less than the 6. The close is greater than the 55. I m going to take you through some of these. Let s go to a daily chart. Bank of America. That looks good. Puts us right on the money and price is moving. This would have come up on our scan. We have a nice double bottom. 13
FCX. It s got potential. The high is greater than the 2. Since this is a bullish scan let s add another filter. Add Filter Edit Change ADX Crossover to Price Close Is greater than Open We go from 2, 408 stocks and we cut it in half. 14
Citi Group. MS. Let s do one more thing to make this fun Add Study Filter Custom Typically you re going to use ADX because the ADX indicator is ADX with a DMI positive and negative in most platforms. In Think or Swim it is DMI. DMI + Is greater than DMI - Click Save Go to Charts 15
Here s a good setup. We want our ADX line below 20 and rising and our green above our red which gives us this setup right here. We re going to go edit this final one. We said the DMI+ is greater than the negative and the ADX line is below 20 and save. That takes us to 300 stocks. 16
I think I covered everything. I didn t want it to go too long. Your homework is to take this scan. Price is greater than 10. High is greater than the 2 period exponential moving average The close is greater than the open The low is less than 6. Close is greater than the 55. DMI- is Greater than your DMI+ ADX is less than 20. Any time we re less than 20 we have the potential for this. This is a bearish move down because that red line above means price is moving down, but if the green was above and the red was below, this is a sign of a big bullish move. It doesn t tell you direction. You need the positive and negative DMI for direction. Hope you enjoyed this video and I look forward to seeing you in the next one. 17
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