Maggandre, I mostly use SC.com's scans for volume gainers. I believe there is a way to weed out the penny stocks and thinly traded stocks but I'm not sure how. They do crossovers, 52 wk highs, indicator signals, etc..
I'm a pattern and support and resistance trader. I look for break outs on strong volume or break downs on normal volume. I want the surge in volume to occur at the bottom - right where I am looking to cover. I'm not shorting very much lately. The biggest think I look for on break outs is volume. Volume tells you everything you need to know.
Two great example are RFMD from yeterday and MAG from today. Both broke out of a head and shoulder reversal pattern on strong volume.
it sounds like you have a relatively simple process for creening stocks. So basically, you go to sc.com and scan for volume gainers until you come across an attractive pattern opportunity? I am a new trader, just started with a prop firm about a month ago and am tryng to soak up everything I can to find a strategy that I feel most comfortable with. Thanks-
That comes pretty close to what I look for. I'm more interested in the pattern to begin with. I then look for volume. If strong volume exits but there is no pattern to explore it, I pass it up. I have to have both in order to select an exact entry point. On the other hand, you don't need strong volume to sell short when a stock breaks support. Average volume is fine. Spikes in volume usually occur at the bottom - right where you want to cover. Stocks usually rally after a capitulation sell-off.