Introduction

Bearish stocks are ideal candidates for bearish stock strategies such as intraday short selling (IDSS) that is launched into Malaysia stock market recently. IDSS involves short term stock pick which is a good opportunity for earning a quick profit within a few hours in a day. This strategy can be profitable if proper trading strategies are used especially when the market is down. This is because the share price of an extremely bearish stock usually decline very rapidly when panic selling occurs.

This post is in continuation of our previous article about MQ Trader Stock Screener. To understand the stock screener features better, kindly read MQ Trader – How to pick a stock?

The reasons to trade IDSS

1. The fear is a much stronger emotion than greed leading to the occurrence of panic selling
2. The stock market is not always in bullish trend
3. It provides a short term trading opportunity
4. Hedge your position if there’s any bad news towards the market

How to filter bearish/down-trending stocks?

MQ Trader technical screener is able to assist traders to narrow down the desired stocks list efficiently based on technical analysis. Technical screener contains a lot of financial criteria (i.e. technical indicators, moving averages) for assisting traders to filter the stocks accordingly. Kindly visit MQ Trader - Variables of Technical Screener to read more. 

The variables set below is a combination of criteria based on MQ Trader strategies which can assist traders who would like to look for bearish/down-trending stocks.

Then, a stock list which comprises 9 stocks is generated within a few seconds as shown in Table 1.

Table 1: Bearish/down-trending stocks list screened on 6^th August 2018.

Screening the technical charts

Based on the stocks list we obtained, let’s go through a few stocks by using technical charts and MQ Trader Trading Strategies.

Figure 1(a) to 1(c) shows that 3 of the stocks are experiencing bearish price movement at the moment and their current chart patterns met all criteria that we set in the technical screener.

Figure 1 (a): Daily chart of KPS

Figure 1(b): Daily chart of SMCAP

Figure 1 (c): Daily chart of VERSATL

By screening the technical charts of the stocks that match our criteria, we can locate the trading opportunities by following the trading signals in 30 minutes or 10 minutes charts which are highly sensitive for IDSS. For understanding more on how to use MQ Trader’s trading signals, please visit Introduction to MQ Trader Trading Strategies.

Conclusion

MQ Trader technical screener is able to filters stocks based on technical analysis purely when “fast in fast out” approach is used as our trading strategy for earning profits in a short time. Volume screener and fundamental screener are also provided in MQ Trader Stock Analysis system to identify whether the stock is actively traded over the time and determine fundamental rating of the company. These screeners will be further explained in details in our next topics - MQ Trader - Fundamental Screener!

If you are interested in looking for bullish/up-trending stocks and potential breakout stocks, please read MQ Trader – Technical Screener for Up-trending stocks and MQ Trader – Technical Screener for Potential Breakout stocks respectively.

Community Feedback

We encourage traders to try out and evaluate the MQ Trader system and provide us feedback on the features you like to see in the system. We have received many positive feedbacks so far, and we are currently compiling and reviewing them for possible inclusion into the next release of the system.

We would like to develop this system based on community feedback to cater for community needs. Thanks to all those who have provided valuable feedback to us. Keep those feedbacks coming in!

Disclaimer

This article does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties in the Internet. We may or may not hold position in the stock covered, or initiate new position in the stock within the next 7 days.

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MQ Trader stock analysis system uses Artificial Intelligence (AI), various technical indicators and quantitative data to generate accurate trading signals without the interference of human's emotions and bias against any particular stock. It comprises trading strategies which are very popular among fund managers for analysing stocks. 

MQ Trader stock analysis system is SPONSORED for MQ Trader members. To use this amazing tool, you can sign up via MQ Trader Sign Up!

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