Big Dog Bounce:
Up trending stocks that take a dip 

PCFs:
1) #25-Stoch7.3.10 (STOC7.3.2>STOC7.3.1) AND (STOC7.3>STOC7.3.1)
2) #26-RSI3.3
(RSI3.3.2>RSI3.3.1) AND (RSI3.3>RSI3.3.1)
3) #6-Big-Dog-Bounce
(MAXH5.1>C*1.1) AND (STOC7.3<50) AND (STOC28.3>50) AND (C>AVGC21)
4) #24-Risk-Reward %
((MAXC21-AVGC21)/AVGC21)*100

EasyScan:



Tab:



Rules:

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:

CNXT was picked as the only stock by the above scan on June 26, 1999.