I’m going to do something that is unheard of in stock chart and market analysis. I’m going to tell you exactly what I look for in a stock and how I find picks for one of the most popular stock blogs on the Internet.
This is not about using technical analysis to read a stock chart. It is something much more effective.
In fact, I learned this method from a top secret artificial intelligence algorithm that has produced returns in excess of 1,000% annually known only to a few inner circle stock market club members.
This revolutionary algorithm makes your computer think better than a human brain. Older software used statistics and set models for processing, but this algorithm is literally like having 100 stock analysts and day traders sitting inside your computer working for you!
I have used this to make a lot of money and now I’m going to tell you exactly what the algorithm is.
I’m giving you this for free because I’m hoping you make a lot of money from this and become a regular reader of my articles.
The first component of this formula is to determine the trend. What you want are the daily moving averages in three time frames: the 10 day MA, 20 day MA, and 50 day MA. Here is the first part of the formula: 10 day MA > 20 day MA > 50 day MA. In other words the 10 day MA is higher than the 20 day MA which in turn is higher than the 50 day MA. If the stock you are looking at meets this criteria, then move on to the next component in this formula. If it does not, go back and keep looking for a stock until you find one that does.
The next component in this formula is to determine if on the previous day, in the last hour of trading, the stock closed above the 5 hour MA. If it has, move on to the next component in this killer formula. If not, reject the stock and start all over again until you find a stock that does.
The next component in this formula is to determine if the stock is at a 3 day high. If it is, move on to the next step below. If not, you know the drill, throw away this stock and start over again.
The next component in this formula is if the last price of the stock is above the 20 day MA. If it is, move on, if not, reject and start over.
The next component in this formula is if the stock has hit a 3 week high in the last week (the previous full week of trading). If not, reject the stock and start over.
The final component in this formula is if the stock has hit a 3 month high in the last month (the previous full month of trading).
Doing this by hand is a pain, but so worth it! If you want a stock screener that screens 20,000 stocks with the algorithm I just gave you in like 5 seconds, then watch the video below.