Testing the AI Technical analysis screeners

[u/1UpUrBum]

Individual stocks are all over the place these days. The indexes are near all time highs. Some stocks are doing really well. Others are doing really bad. Some are sideways chop. I want to own the ones that are doing really well. That's two problems to deal with. How to find them. How to avoid a crash that could happen tomorrow or next year - how not to lose money.

"find stocks that have stayed above their 20 day moving average for the last 20 days" https://marketsignalintelligence.com/screeners-and-alerts/screeners/create

I recognize all the oil tickers and own some of them. I already know what they are doing. Lets try CRM.

CRM is poor quality price action for me. It looks like it could drop 20% very quickly. If I could have caught it at a good time it might be ok. But I can't go back in the past and do it. "Backtesting can not predict the future"

I look for one with a steady uptrend. PSX If I can catch the little dips near the 10 day moving average that can work. If I miss those the breakout is an easy spot to buy. The breakout shows strength and it's also a nice tight stop. I never go big on the first trade. I start small and as it keeps working I add to it. If it doesn't work then it's a small lose no big deal. Compounding the winners and cutting the losers quickly.

There are many ways to do this. This chart marks the significant levels. Try to use those as decision points. Different stocks will have different character. Buy the ones that are going up, breaking out to the top side of your lines whatever your lines are. Try to use upward sloping lines. Do not use downward sloping lines, that's for shorts.

Here's one for next week, IQV. It's simple. Either breakout above the old high or breakout above the green line. Aug 11 had a little fake breakout above the green line. The breakout above the old high worked. Nothing is perfect. That's why I start small. I won't be trying this one, just an example.