My Bearish Breakout Screener

After years of picking stocks to add to my watchlist by either combing through Twitter, chatroom suggestions or using Finviz’ screener; I decided I was going to bite the bullet and build my own screener using ProScreener.

ProScreener is ProRealTime’s (PRT) dynamic stock picking scanner that allows users to import third party ProRealTime screeners or build their own.

Step #1: Identify the set up I wanted to screen for

Overstock was a company that had been trending down for some time now and was on the cusp of breaking 52 week lows, once it did the breakout below the support line saw a 14% (-145 points) sell off from in less than 3 hours.

I realised that if price is fast approaching the support line of 52 week lows and looks to be breaking out to the downside anytime soon. I could identify trades to short into bearish breakout.

Overstock.com (OSTK:NASDAQ) – 11th November 2019

Step #2: Choose criteria that would screen for these stocks and test on Finviz

  1. Price < 50 Day Simple Moving Average
  2. Price 0-3% above 52 Week Low
  3. Average Volume >50,000
  4. Price > $2

If you want to know how I decided on using these criteria check out my video: How To Make a Stock Screener

Step #3: Identify the stocks that most fit your requirements

Success! The screener criteria that I set worked and I found a few stocks of the 100+ left that fit my requirements by looking at the charts section in the Finviz screener. Now its time to turn this into code.

Step #4: Learn how to code in PRT language

After a couple of hours of trying to make the code myself I realised it would be less time consuming if I enlisted the help of one of the wonderful community members of ProRealCode to help turn my ideas in an actually dynamic screener.

So I posted my requirements on the forum and ProRealCode moderator, Roberto produced the goods.

Step #5: Edit the code & launch!

I made a few adjustments to the code to include a criteria for the MACD histogram at the current period (on the daily chart) to be above zero and smaller than that of the previous period.

Once this was done I launched the screen in ProScreener!

Step #6: Find shorting opportunities

From the list of stocks the screener provided I identified two great set ups to trade.

  1. Pearson (PSON:LSE)
  2. Cooper Standard Holdings (CPS:NYSE)

19th November 2019: I entered a short position on Pearson and entered a short on my demo account on Cooper Standard Holdings.

  1. PSON Entry Price: 672 @ £3 per point
  2. CPS Entry Price 2947 @ £1 per point (demo account)

If you would like to use download and use the NocTrader Bearish Breakout screener join my mailing list and I will email it to you: )

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