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Technical Screens Review
Technical Screens programs look at price or volume patterns of stocks. These are normally the patterns most traders and analysts look for to decide whether stock will already be bought because the pattern suggest that it will start gaining soon or the stock needs to be sold already because the pattern shows that for the succeeding periods, the stock price is about to fall already. Patterns are based from historical data of each stock. Normally, Technical Screens assess the trend 5 years back to see if a pattern could be established that can be used to make a decision to trade. Such criteria include: Moving Averages, Oscillators, Volume Indicators, Trendlines, Support/Resistance, Fibonacci Retracements, Candlesticks, Point and Figure patterns and DeMark’s Trendlines.
Components of Technical Screens include: New 52-Week Highs, New 5-Year Highs, New 52-Week Lows, New 5-Year Lows, Intraday High-Volume Gainers, One-Week High-Volume Gainers, One-Month High-Volume Gainers, Intraday High-Volume Losers, One-Week High-Volume Losers, One-Month High-Volume Losers, Gapping Up Today, Gapping Down Today, Crossed Above 50-Day MA Today, Crossed Above 200-Day MA Today, Closed Above 50-Day MA Today, Closed Above 200-Day MA Today, Crossed Below 50-Day MA Today, Crossed Below 200-Day MA Today, Closed Below 50-Day MA Today, Closed Below 200-Day MA Today, This Year’s Winners, This Year’s Losers. This is where data is pulled in order to provide the result of the criteria for the analysis of the transaction.
It can be noted that this type of analysis are mostly based on actual figure performance of the stock on a given day. Beyond the figures and patterns, no other factors are considered to be able to get the desired output. It offers no explanation as to why the stock suddenly went down, why it gained or why it just became static. From the Technical Screens reviews, these data are still helpful for the outcome of any trading decisions, however, since it does not factor in other conditions and rely mostly on trends and figures that may be already outdated, most traders do not rely much on this system. Traders do use this approach but normally only as a form of monitoring and they still use other systems to help them get a better decision for their trades.
This is actually an old approach. Although not highly recommended since it does not give a comprehensive look at the overall performance of the stocks, there are still some people who use this. It can also still come up with different interpretations based on the historical figures and patterns that may be useful for the proper execution of the trade. While it may be true that only a certain amount of information can be supplied by this system, stocks are still very volatile, very unpredictable. No matter how thorough a system is in evaluating a certain situation when trading, the fact remains that actual result can still be the opposite of what was analyzed. In any case, tools like this approach are just guides to make better judgments but they do not necessarily affect the actual outcome of any stock trading activity.
