Below is the list of stocks, which have given a price/volume breakout (yes…there’s always a bull market somewhere!!!). The parameters used to scan this list were “Displays securities where the price increased 5% and the volume is 50% above a 50-day moving average”.
In the chart above, you can see the current close followed by the previous close which leads to the percentage change! Then of course the volume, the 50 day MA of Volume and the percent increase in volume.
Another filter I added was RS (Relative Strength Comparative) measuring the strength of the scrip vis a vis nifty. And to put it graphically I have put charts of Uttam Sugars (to your left) and Valecha Engineering (to your right) showing the two most extreme cases where one is underperforming the nifty and the other outperforming, and yet both are breakout candidates!!! Who knows Uttam Sugars, the laggard, might be just starting a turnaround story???
3 comments:
Hi Manoj,
Very nice analysis. Can you pls tell how do we calculate RS values without charts. I mean the formule.
Regards,
Veer
Veer Hi
Thanks for the appreciation...
You can calculate the RS by dividing the close of the security by the base (nifty in this case)and then plotting it as a line..
I havent done it manually coz I am more happy with the software doing it!!!
http://www.stator-afm.com/relative-strength-comparative.html
Cheers!!!
Thank you Manoj.
Regards,
Veer
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