Monday, October 27, 2008

Quick Analysis

One quick way I use to sort through many potential stock picks is to go to Yahoo Finance and look at the following:

1) Price/book ratio. The lower the better as far as value goes.
2) Shares short less than previous month. The lower the better as far as people betting against the stock.
3) Slow Stochastics. I'm looking for %K crossing above %D and as close to 20 on the oversold side as possible. I wrote more about this in an earlier post.
4) PSAR. I'm looking for parabolic SAR below the stock price.

All of these together make for a quick way to analyze several picks to narrow down your choices.

- Roger


  1. Roger, what settings do you use for the stochastics and parabolic?

  2. I use slow stochastics %K (15,3) %D (15,3,3) and PSAR at an acceleration of .032 and Max. Acelleration at 0.2