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Power
Trader
The Power Trader Scan is very similar
to the Usual Suspects 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 criteria of this scan is stricter than the Usual
Suspects Scan. I also added stricter rules for the last
price, gap open, and last trade as a percentage of the
trading range. I use this scan to find stocks that are
moving on relative high volume and are trading at the top
of the day’s trading range. 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.
The following examples illustrate how I use the Power
Trader Scan in my trading.
Stocks that show up on this scan at the
end of the trading day have a good chance of making a
higher high the following day. However, the higher high
could be one cent higher, so do not hold these stocks
overnight only because they have a good chance to make a
higher high. |
