| Big
Dog Bounce: Up trending stocks that take a dip PCFs: EasyScan: |
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1) Big Dog Bounce sort value is "TRUE" 2) The Stochastic %K line below the midline - below 20 for the best risk/reward. 3) The Stochastic %K line must have a hook turning up. 4) The Stochastic %D line above the midline. 5) Wilder's RSI hooking up which confirms the direction of the Stochastic %K. 6) Volume drying on way down, resuming on pivot. 7) At least 10 - 20% between lowest close and previous high during the last 7 - 10 bars. 8) If after the pivot
the stock stays flat or goes down, get out. You want big strength going
to new highs.Usually this happens within 3 to 7 bars. This will provide
very short term candidates, the expiration date is usually when prices
meet the previous high. Stay nimble. This scan produces leads NOT buy
triggers. Philosophy: 1) The first pullback (dip) from a new high is USUALLY buyable. 2) Strong stocks tend to pull back (dip) to the 21 day moving average before rebounding. 3) A 21 day cycle USUALLY indicates institutional buying. 4) Remember: RESISTANCE is the highest CLOSE during the past 21 days. SUPPORT is the 21 dma. 5) If the stock price drops more than 20% below resistance or if the stock price drops below the 21 dma, avoid the trade. 6) Is the trade worth the trouble? Use PCF #24 to find the RISK/REWARD percentage. The higher the better. Example: |
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| CNXT was picked as the only stock by the above scan on June 26, 1999. |