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New
Kid on the Block
The New Kid on the Block Scan is very
similar to the Power Trader Scan. This scan filters the
entire market searching for stocks that are moving up and
are on pace to trade higher than their average daily
volume. The volume and price criteria of this scan is
different than the Power Trader Scan. I use this scan to
find stocks that are priced between 5-40 and are moving up
on relative high volume. These stocks must be trading at
the top 25% of the day’s trading range.
The main difference between this scan
and the Power Trader Scan is the minimum and maximum
average daily volume criteria. This scan tries to find
stocks that are relatively unknown and are finding
interest from institutions or investors. I try to detect
the stocks early enough in the trading day, but I will
also look to see if any stocks from this scan are setting
up at the end of the day. The ultimate candidate is a
stock that is making its first day of a move on relatively
high volume.
Stocks that show up on this scan may
represent incredible opportunities. Almost all of Wall
Street’s darlings would have showed up on this scan
before they became popular. Consequently, traders,
investors, or even fund managers can use this scan to find
stocks with new interest.
This scan is extremely
valuable in bull markets, at the end of a bear market, and
during the January Effect. In one of the three
stock-picking contests that I have won, 40% of all trades
were generated by this scan. |
