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| Stochastic 15-Day Buy Signal |
Scan Criteria
 Where Stochastic %K (FAST %K(15), %D(5) DAILY)
Crosses Above 20
On the Last Trading Day
 Where Stochastic %K (FAST %K(15), %D(5) DAILY)
Is Less Than 20
For All 5 Trading days prior to Last Trading Day
Where Price (Close)
Is Greater Than 2
On the Last Trading Day
Where Average Volume (30 DAILY)
Is Greater Than 50000
On the Last Trading Day
Scan Overview
This scan can be useful in identifying a trend reversal.
Stochastic %K is a value between zero and 100 highlighting where within the price range the close ended up. So if the close is equal to the high price then Stochastic %K is 100 and zero if the close equals the low price.
In this scan we are looking for close prices that have consistently been in the bottom 20% of the range over the last five days prior to the current one.
This can indicate a decreasing price and that sellers are winning the day to day tug of war battle with price. The scan is then looking for Stochastic %K to cross above 20 which could then signal the buyers are starting to move back in. We are also narrowing our search down by looking at stocks that are trading above $2 and ensuring liquidity by specifying an average 30-day trading volume of 50,000 or higher.
There are many ways you can modify or improve on the above rules. For example you might want higher price and volume requirements or you may want to add a rule that makes sure Stochastic %K remains above 20 for another day or two before triggering.
Backtesting
The following graph shows the above scan backtested with WOW
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