STOCK SELECTION STEPS

TOP DOWN ANALYSIS
- Determine the general trend of the market. Check the work markets as well. Trend represents price direction e.g. up, down, sideways. Oscilators are best utilized when trying to confirm or pinpoint trade entry/exit points within trading ranges
- assess the major market trends e.g. DOW, S&P500, NASDAQ
- assess the trends in specific industries, sectors including ETFs
- find stocks to buy during market and sector uptrends, or sell short during down trends

TRADING TIME FRAMES
- Long term "Position" trades: aim to capture extended price moves, lasting from week to several months. generally >12 months chart is usefull to analyse.
- Short term "Swing" trades: aim to capture minor price moves lasting from days to several weeks. generall last 3 months are relevant.
- intraday trading

STOCK SELECTION
1. Screen stocks based on the fundamental values
2. Use technical chart scanning tools to filter out this stocks
Find stock making new highs (parameters)
- price > short term high (1d,5d,21d)
- price > long term high (63d,200d,52w)
Find stocks in uptrend
- price > short term MA (1d,5d,21d)
- price > long term MA(63d,200d,52w)
- short term MA > Long term MA
3. Prepare a risk plan define entry, exit points.