Scanning Technically

How Can I scan for the "Pocket Pivot" Setup?

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Does anyone have a scan for the “Pocket Pivot” that they would be willing to share?

–TicoBob

 

My scan is based on the definition used by Chris Kacher (who came up with the concept). See his book or his website for details.

There are some fundamentals and situational criteria that need to be addressed, but the following will narrow the possibilities:

 


// Criteria to only scan leading stocks

[type = stock] and 
[daily sma(40,daily volume) > 500000] and
[daily sma(40,daily close) > 10] and
[daily close > daily sma(200,daily close)] and

// Criteria to verify the day's volume should be larger than the highest down volume day over the prior 10 days
[daily volume > 1 days ago daily volume * 1 days ago ROC(1) /absval(1 days ago ROC(1))* -1] and

[daily volume > 2 days ago daily volume * 2 days ago ROC(1) /absval(2 days ago ROC(1))* -1] and
[daily volume > 3 days ago daily volume * 3 days ago ROC(1) /absval(3 days ago ROC(1))* -1] and
[daily volume > 4 days ago daily volume * 4 days ago ROC(1) /absval(4 days ago ROC(1))* -1] and
[daily volume > 5 days ago daily volume * 5 days ago ROC(1) /absval(5 days ago ROC(1))* -1] and
[daily volume > 6 days ago daily volume * 6 days ago ROC(1) /absval(6 days ago ROC(1))* -1] and
[daily volume > 7 days ago daily volume * 7 days ago ROC(1) /absval(7 days ago ROC(1))* -1] and
[daily volume > 8 days ago daily volume * 8 days ago ROC(1) /absval(8 days ago ROC(1))* -1] and
[daily volume > 9 days ago daily volume * 9 days ago ROC(1) /absval(9 days ago ROC(1))* -1] and
[daily volume > 10 days ago daily volume * 10 days ago ROC(1) /absval(10 days ago ROC(1))* -1] and

//Criteria to see jump through 10 or 50 d SMA
[[yesterday's daily close < yesterday's daily sma(10,daily close)] and [daily close > daily sma(10,daily close)]

or

[yesterday's daily close < yesterday's daily sma(50,daily close)] and [daily close > daily sma(50,daily close)]]

Once you've run this scan, then you'll need to visually inspect the candidates. You're looking for either an early buy point within a consolidation or a consolidation buy point for a leading stock already firmly entrenched in a strong uptrend. (This is very easy to do visually, but would be very tough to program into the scan.) The scan found 6 symbols tonight, but none had charts that visually matched these criteria. Not surprising, since you don't expect to find pocket pivots very often.

MarkK

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