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MACD divergence scan reveals

We’ve been running an AIQ TradingExpert EDS custom scan recently to focus in on possible double top and double bottoms with MACD divergence.

As is often the case with a strategy that looks for a particular price pattern, the human eye is far better at identifying the double top and bottom and the divergence. Mechanized scans will often miss some gems and also find some clunkers. However by reducing the number of tickers to a more manageable size for us to look at manually, we do save time.

April 5th we ran the scan on stocks that have good liquidity and also have options. We didn’t want tickers with diminished liquidity on the stocks, as that would imply that liquidity on the options would be inadequate for trading.

The scan gave us;

5 stocks with double bottoms and MACD divergence to the upside.
44 stocks with double tops and MACD divergence to the downside.

This imbalance is not surprising given the recent market uptrend from mid February.

It’s easy to build a list of the tickers in AIQ TradingExpert and through into Charts. Now in a matter of minutes I can explore the results looking for the best patterns

Double bottom AAP ABC ADI HMC AFL RIG AMAT SHLD AMGN TM

Double top AMX BMY CME CPB CTL DTE EIX EMC ETR FXY HIG IBM ITW KBH KMB MLM MMM MTH NEE PCG PFE PG PKX RTN SO STLD STR SYK T TRV TTWO TXN UNH UTX VZ WLP WY X XHB

These 3 stocks, CME, CPB and BMY have the best looking patterns with V-shaped tops and MACD divergence.

CPB4-5-16

 

CME4-5-16

 

BMY4-5-16

 

Want to know how we look for these patterns? Try our SharpShooter service for 14-days learn more

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