Screening for Saucer Chart Shares

9th Mar '14 by RobbOnTheRock

6 comments 14996 reads

Hi folks,

I'm looking for some ideas on how to screen for shares that have stopped making new lows.

I'm really trying to find out of favour stocks that are maybe having problems but sentiment is starting to change.

My plan is to find them, track them then wait I hope for the fundamentals to align, getting in as close to the bottom as possible - yes I know the holy grail :)

An example would be games workshop, quite out of favour at present...

Any ideas welcome.

Ps I was thinking some sort of screen being run on the moving 200d average, but not too sure.

Appreciate the advice folks.

Cheers
Andy

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About the Author

RobbOnTheRock

Premium Member

I'm a 30 something Engineer, working in the Oil and Gas industry. I'm married with 2 children and my investing aim is to grow my savings into a pot which could provide an income for me. I am not relying on this to provide a pension, as I have a separate company administered pension. more »

6 comments

Ian4321

9th Mar '14

It would probably help you if you started with an existing strategy and then amended it to suit your personal requirements. Currently the only strategy that favours Games Workshop is Greenblatt's Magic Formula, so you could try starting from there.

RobbOnTheRock

9th Mar '14

Thanks, appreciate the advice.

Cheers

PhilHofGrowYourDough

9th Mar '14

That's quite hard to do but you could try this http://www.stockopedia.com/screens/saucer-19090/?display=charts#display

RobbOnTheRock

10th Mar '14

That's brilliant, many thanks for your help.

Appreciate it.

Cheers
Andy

SevenPillars

14th Mar '14

I tend to think that on the longer term charts, daily, weekly and monthly, the 200dma or 200ema are one of the most important indicators you can have to judge the long term health of a stock. Fact is you would be wise to not go long on anything that is under the 200 until it has broken above the 200 and shown some evidence of being able to stay above it. Shares that are falling under the 200 tend to stay under and while often they will retrace the 200 remains a barrier and then they fall lower. Once it levels out you would then want to see some kind of breakout ideally supported by news and fundamentals.

The above is difficult because it often requires great patience and a willingness to wait and not jump the gun on falling stocks that might look cheap. Those longer term charts tend to move much more slowly, but it is better to be on the right side of a MA like the 200 than the wrong I would suggest.

RobbOnTheRock

14th Mar '14

Seven, thanks for the feedback, very much appreciate it.

I think your right and it seems sensible, it's a wait and see strategy.

It's a good screen though to detect bombed out stocks for short listing.

Cheers
Andy

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Screening for Saucer Chart Shares

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RobbOnTheRock

6 comments

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