Extremely simple breakout method Part1

What is a breakout.

It is a impulse move. Or a price increase on high volume in very simple language.

You people are making very complicated scans for it.

Here is a simple breakout scan :

Stock should be up 50 cents

Stock should have volume 10% higher than average 50 day volume.

Volume should be above 50000

A pcf for this would be: 

(C - C1) >.50 AND V>1.1* AVGV50and v>=500

IBD uses a similar approach to find breakout on CANSLIM stock.

The Stocks on the Move stocks are generated using this kind of scan. O'Neil in his book says on breakout day the stock should be up 50 cents and volume should be 40% more than 50 day average.

So the pcf would become:

(C - C1) >.50 AND V>1.4* AVGV50and v>=500

Extremely simple breakout method Part2

Many people object to my use of 4% breakout method by saying it does not take in to consideration average range. A stocks average range might be 5% so a 4% b/o is not significant they argue.

So you want to make simple average range breakout scan.

It is very easy. 

(C - H1) >(AVGH20- AVGL20) and v>v1

In this PCF you can vary the AVGH20- AVGL20 part from 5 days to 63 days depending on what range you want to consider for breakout. 

A range breakout scan like this will produce less frequent signals compared to my 4% breakout scan.