This week is going to be a holiday-truncated week. Friday becoming a holiday, the week will pre-maturely end on Thursday, 23rd of February, 2017. Recently I have coded Larry Connors %B method and combined that with Connors RSI and 2-period RSI on Amibroker to build my Extreme Trading Toolkit. Now let me analyze few stocks with the toolkit. I have done a scan and found 2 scrips that are ripe for an immediate bounce and they can be your bet for month end trading.
I have created an Amibroker exploration that scans an equities price with its 200-day moving average price and also finds its Connors RSI value, %B value and 2-period RSI value. Scrips above 200-day MA is a bull stock and scrips below 200-day MA are bear stocks. Bull stocks should be watched for long trades only and bear stocks should be watched for short trades only. The entry and exit to be decided on the values of Connors RSI, %B OR 2-period RSI.
Today I will experiment on %B indicator. %B indicator is derived from a (5,1) Bollinger band and lower readings below 0.1 are considered for long. Also, the number of days below 0.1 / 0 / -0.1 is also taken into consideration. The number of days below those levels the faster can be the bounce. Now see my scan window below:
You can see two stocks ITC and HINDALCO both prices are well above their 200-day MA. ITC (LTP 263.15) %B has closed 2 days in a row below 0 and last trading day %B closed at -0.1413 well below -0.1. HINDALCO (LTP 182.45) too %B has closed below 0 two consecutive days. Both the stocks can be watched an as long candidate for month end trading and short-term bounce with more emphasize at ITC due to its more oversold nature. BUY in sharp intraday dips. Soon the Extreme Trading Toolkit for Amibroker will be introduced to Zerodha Club members. Just fine tuning is in process.