Three Red Arrows Search

Lets carry on with another search and this time it will be a 3 red arrow search. These are best used in down trending markets as it is not a good idea to fight any type of uptrend.

I will tell you ahead of time that the reason we have never had this search was because we did not want our students looking to invest in a bearish strategy just because a stock had 3 red arrows. A down trending stock with 3 red arrows also needs to be in a down trending industry and carry a bad phase 2 score.

Homework: Three red arrow search
1) Click on the "Searches" tab
2) On the left hand side of the page click on "Power ProSearch"
3) You will now see many rows of empty boxes
4) Under the first row and under the box "Choose a Category" click on "Technical Indicators"
5) Under "Choose Criteria" click on "Moving Average 30 Days"
6) Under "Set Parameters" click on "Between" In the "Minimum box" type "70" and in the "Max box" type in "99"
This will now look for all stocks where the stock price is below the moving average. - First red arrow

7) On the second row of indicators under "Choose a Category" click on "Technical Indicators"
8) Under "Choose a Criteria" click on "MACD Brkout 8/17/9-Day"
9) Under "Set Parameters" click on "Any Negative Breakout"
10) Under "In the Last" box type in "3"
This will now look for stocks where the MACD's have turned negative anytime over the past 3 days - Second red arrow

You can set the parameters for the Stochastics for the third red arrow, however I like to leave it blank as shown below to catch the Phantom Red arrows. If however you want to add the parameters then follow steps 11 through 14 below.

11) On the third row of indicators under "Choose a Category" click on "Technical Indicators"
12) Under "Choose a Criteria" click on "Stochastics Value 14/5 Day"
13) Under "Set Parameters" click on "Between"
14) In the "Minimum box" type in "25" and in the "Maximum box" type in "75"
This could be either showing a red or green arrow however since the MACD's are trending lower it should be red or just about to turn red - Third red arrow

We are going to add a few more items to the mix, stocks on U.S. exchanges (Canadian students can leave this step out or search just for Canadian companies) and we will also look for only optionable stocks since I like to trade options or even higher volume stocks.

15) On the fourth row of indicators under "Choose a Category" click on "Background"
16) Under "Choose a Criteria" click on "Exchange"
17) Under "Set Parameters" click on "US Markets Only"
18) On the fifth row of indicators under "Choose a Category" click on "background"
19) Under "Choose a Criteria" click on "Stock Type"
20) Under "Set Parameters" click on "Optionable Stocks"

21) Scroll to the bottom of the page and under "Step 3" "How Many Results" click on "150"
22) Click on "Submit Search"
Once the results come up you can save the search by clicking on the "Favorites" button on your Browser and then clicking on "Add to Favorites"  
From the results page, click once on "MG/Zacks", this will now sort the stocks with 3 red arrows from the worse phase 2 stocks to the better phase 2 stocks.
23) Go to the top of the page and click on "Select All Symbols"
23) Click on "View Selected Symbols as Chart Thumbnails"

You have now just created your own 3 red arrow search. A fantastic search that should keep you going with some excellent bearish stocks. Be sure to double check your results for a poor phase 2 score and a downtrending industry.

From the Power ProSearch link type in the following fields as shown above

Change the number of search results to show 100 and click on "Submit Search"

You can now view charts of all the stocks you selected on one page. When you find one you like, you can click on the chart to do some more research on it.
Cheers,
Mike

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