Screening For Setups In MarketSmith | Summary and Q&A

TL;DR

Easily find potential stocks for entry points using IBD Live Universe, MarketSmith, and customized screens.

Key Insights

• 😥 IBD Live Universe provides a convenient way to access a comprehensive list of potential stocks for entry points.
• 👻 MarketSmith screens allow for further filtering based on specific technical criteria.
• 🔊 Sorting stocks by dollar volume helps focus on stocks with high liquidity and potential for significant moves.
• 👻 The combination of IBD Live Universe and MarketSmith screens allows for a systematic approach to finding setups.
• 😂 Paying attention to proximity to moving averages and RS ratings can help identify stocks with strong technical setups.
• 😥 Regularly screening and monitoring stocks using these methods can help traders stay updated on potential entry points and setups.
• 🔇 Customizing column layouts in MarketSmith can make it easier to analyze stocks based on price, volume, and dollar volume.

Transcript

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Questions & Answers

Q: What is IBD Live Universe, and how can it help in finding potential stocks?

IBD Live Universe is a tool that provides a list of stocks above $10 with at least $20 million in dollar volume. By sorting this list by dollar volume, you can identify stocks with high trading activity that might be setting up for potential gains.

Q: How can screens on MarketSmith be used to find stocks for entry points?

MarketSmith allows you to create customized screens based on criteria like proximity to moving averages and RS ratings. By setting parameters such as being within 2% of the 21-day and 50-day moving averages and having a minimum RS rating, you can filter stocks and focus on potential setups.

Q: How can the IBD Live Universe and MarketSmith screens be used together to find stocks?

By utilizing both tools, you can get a comprehensive list of stocks from IBD Live Universe and then further narrow it down using the MarketSmith screens. This allows you to identify stocks that have both high dollar volume and meet specific technical criteria.

Q: Why is sorting stocks by dollar volume important?

Sorting stocks by dollar volume helps identify stocks with high liquidity, which is crucial for efficient trading. Stocks with higher dollar volume tend to have better price action and are more likely to have significant moves.

Summary & Key Takeaways

• Use IBD Live Universe to access a comprehensive list of stocks above $10 with at least $20 million in dollar volume, and sort them by dollar volume.

• Create screens on MarketSmith to find stocks within 2% of the 21-day and 50-day moving averages, with a minimum RS rating.

• By using these methods, you can narrow down thousands of stocks to a manageable number and identify potential setups.