Successful swing trading is more about managing your rules and keeping the number of stocks you are watching to a manageable list. The more simple your rules are the easier it will be to execute your trades.
After reading a post over at ZorTrades, now seemed like a good time to take you a little deeper into Google Finance Spreadsheets. Using these spreadsheets you can manage your stocks and maintain your own sets of stock lists.
A few weeks ago we covered how you can add basic functions into your spreadsheets and track your watch lists. Now, let’s look at adding simple Relative Strength ranking function to your spreadsheet.
The first thing you want to do is generate a list of stocks to create your initial pool of stocks. You can use a sector, index, earnings criteria, volume criteria, closeness to 52 week highs and so on. Check out Finviz and play around with their screening criteria to get a list of several hundred stocks for your base pool.
Once you have a list of symbols you can paste that into a Google Finance Spreadsheet.
Next, add the ranking function into Column B of your spreadsheet:
=(100 * GoogleFinance(A1, "price")) / INDEX(GoogleFinance(A1 ; "Close" ; "6/24/2013") ; 2 ; 2 )This function takes the current price and divides it using the close from a fixed date. I’ve used 6/24/2013 which was the latest low before this upswing started. This will allow you to see the stocks with the strongest momentum ranking since that low. This concept is called Anchored Momentum and is discussed in more detail over at the StockBee site.
Now, add the PercentRank formula in Column C to get that value of standing of each stock compared to all others in the list.
=PERCENTRANK(B$1:B$73,B5)Finally, sort the list by column C from highest to lowest to see the stocks with the strongest relative strength in your list.
Congratulations, you have now created your own ranked list of stocks. Now it’s up to you to tweak and modify your set of requirements to find the most optimal list to fit your swing trading methods.
Example Google Finance spreadsheet