Scanning for Profits

//Scanning for Profits

Hawk’s Scan Sentry Report October 29

Looking at the S&P emini futures contract, all of our primary indicators have now turned bearish. The Triple Trender is synchronized bearishly. The Radar1 Fear/Greed indicator is making lower lows after posting a bearish Pivot Divergence. Even the Radar 3 Trend Strength Indicator is giving a bearish reading for the first time since the middle of June. The Radar2 Price Leader is extremely oversold right now so I would expect to see a pullback up into the Triple Trender followed by further selling pressure to the downside. We are currently resting right around 1400 which is where last week’s posting identified support. 1385 and 1365 will be the next lower support levels on this contract.

I was recently asked how I scan for the stocks that end up on my weekly watchlist published here. The answer is simple. I use a set of tools called the ‘Arps Scan Sentry Toolkit’ (from whence this blog gets its title). This is a set of spreadsheet indicators that are programmed to identify some of my favorite technical setups and to plot the pertinent information on a spreadsheet application like the Trade Station Radar Screen or the eSignal Watchlist. Some of the pertinent information that these tools plot includes how many bars ago the setup fired and how much the price has changed since the setup fired.  Some of them even give me warning signals when the setup conditions are starting to come together or a profit target if the signal is a measured move indication.

After using the Trade Station Scanner to create symbol lists of some of my favorite setups, I then combine the lists on a Radar Screen so that I can sort the data however I want and compare the status of different signals. Finally, I link the Radar Screen to a chart with the significant charting indicators applied and then I can click on any symbol in the RadarScreen and immediately see what the chart looks like.

Some of those charts are published below. There are setup examples both long and short. Each contains a little explanation of the analysis visible on the chart. If you have any questions about the indicators on these charts please follow this link to a legend describing these tools.

_____Longs_____

TDG

(A combined assortment of bullish signals including a Trender Pullback, a Pullback 23, a Trend Exhaustion 1 oversold signal and an AutoDivergence ‘Trend Divergence’  signal .)

PKI

(This combines a trendline breakout signal, with a Pullback 23, Trend Exhaustion 1 and ‘Trend Divergence’ signal.)

_____Shorts_____

OC

(A series of bearish divergences followed by a bearish Trend Strength reading .)

FR

(All three Triple Trenders turned bearish after a bearish pivot divergence and a weak Radar3 Trend Strength indication.  )

May the trend be with you,

Hawk

Jan Arps’ Traders’ Toolbox is not an investment advisory service nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities customers should buy or sell for themselves. Examples presented on this site are for educational purposes only.  It should not be assumed that the methods, techniques, or indicators presented in these examples will be profitable or that they will not result in losses. There is a high degree of risk in trading.  Readers using this information are solely responsible for their actions and trade at their own risk. Readers should always check with their licensed financial advisor .

2018-01-08T07:34:44+00:00October 29th, 2012|Hawk's Picks|