In the ever-evolving landscape of the stock market, seasoned traders and beginners alike are always on the lookout for strategies that can unveil hidden opportunities. One such intriguing approach gaining attention is the "Sleeping Monster Scan." This stock scanning strategy is not just a tool; it's a methodical way of identifying potential explosive gains in the market. In this article, we will dive deep into the mechanics of the Sleeping Monster Scan, exploring how it works and how traders can harness its power for profitable stock picks.
Understanding the Sleeping Monster Scan
What is the Sleeping Monster Scan?
The Sleeping Monster Scan is a strategic approach to identifying stocks with high growth potential that have been in a period of consolidation. The term "sleeping" suggests that these stocks may have been dormant for a while, presenting an opportunity for a potential awakening and a surge in value.
%20-%20Techzost%20Blog.jpg "Sleeping Monster Scan A Stock Scanning Strategy for Explosive Gains") |
| Sleeping Monster Scan A Stock Scanning Strategy for Explosive Gains |
Why the Term "Sleeping Monster"?
The metaphor of a sleeping monster perfectly encapsulates the essence of this strategy. Just like a dormant giant waiting to be awakened, these stocks have the potential for explosive growth after a period of consolidation. The strategy aims to catch these stocks at the right moment – when they are about to break out and unleash their true potential.
The Mechanics of the Sleeping Monster Scan
Step 1: Starting at Finviz.com
The journey begins at Finviz.com, a popular platform for stock screening and analysis.
- Navigate to the Screener Tab: Click on the screener tab to access the scanning tools.
Select Filters: Apply filters like the 20-day simple moving average, 50-day simple moving average, and 200-day simple moving average. Ensure that the price is strategically positioned relative to these averages.
Introducing the 52-Week High/Low Filter: Utilize the 52-week high/low filter to identify stocks that are currently 0-5% below their high.
Volume Matters: Set a minimum average volume threshold, typically over 100,000, to ensure liquidity in selected stocks.
Adding Sales Growth Filter (Optional): For an additional layer of analysis, consider incorporating a filter for sales growth quarter over quarter. This can further refine your list.
Step 2: Weekly Chart Analysis
- Switch to Weekly Charts: Changing the perspective to weekly charts allows for a more comprehensive analysis, helping to identify longer-term trends.
- Identifying Sleeping Monsters: Look for stocks that exhibit a pattern of explosive growth followed by a period of consolidation. The goal is to pinpoint stocks that are on the verge of waking up.
Exploring Potential Sleeping Monsters
As we explore potential candidates through the Sleeping Monster Scan, it's fascinating to witness the diverse array of stocks that fit the criteria. Let's take a glance at a few intriguing examples:
- Veil (VEIL): This stock has experienced a period of consolidation recently, presenting a potential opportunity for continued strength
- Charles Schwab (SCHW): Within the financial sector, Schwab exhibits a compelling pattern of consolidation, hinting at the possibility of a strong upward move.
- MatteI (MAT): A notable breakout candle on significant volume makes MatteI an interesting candidate for the watch list, showcasing the strategy's ability to identify potential winners.
Adding an Extra Element: BarChart.com
To elevate the Sleeping Monster Scan strategy, traders can integrate additional insights from BarChart.com. This involves analyzing sector performance to further narrow down potential opportunities.
- Navigate to BarChart.com: Access the stock market sectors' performance matrix for a comprehensive overview.
- Focus on Strong Performers: Identify sectors with consistent green performance across different timeframes (three months, one month, and five days).
- Materials and Industrials: As examples, the materials and industrials sectors have shown consistent strength, making them ideal candidates for deeper analysis.
Sector-Based Sleeping Monsters
Delving into sectors introduces a new layer of analysis. Let's explore some sleeping monsters within the materials and industrials sectors:
- Mos (MOS): An agriculture inputs stock within the materials sector, Mos displays a compelling pattern of consolidation, suggesting potential upward movement.
- Otis (OTIS): In the industrials sector, Otis, a company specializing in elevators and escalators, exhibits a tight consolidation phase, indicating the possibility of a breakout.
Conclusion: Unleashing the Potential
The Sleeping Monster Scan is more than just a scanning tool; it's a strategy that empowers traders to uncover potential explosive gains in the stock market. By combining technical analysis with sector-based insights, traders can identify stocks that have been quietly consolidating, waiting for the right moment to surge. As we navigate the dynamic world of stocks, the Sleeping Monster Scan stands out as a valuable approach for those seeking calculated and strategic investment opportunities.
In your journey through the stock market, keep an eye on those sleeping monsters – for within their periods of consolidation may lie the potential for exhilarating market success.
%20-%20Techzost%20Blog.jpg)