Several actions on the American market have recently experienced short -term declines, even if their overall rise trends remain intact. These are not signs of a breakdown, but rather healthy corrections in a longer growth trajectory, often creating attractive entry points for investors who know where to look.
Screening of Investing.com shares is an excellent tool to help choose companies for any investment portfolio. It offers many indicators that you can adjust freely, giving almost unlimited ways to personalize your search. Today’s analysis will focus on the choice of companies that have recently faced a temporary technical decline.
The parameters of the indicators are designed to find companies that are in a temporary withdrawal in an overall rise trend but always have good growth potential, depending on the investment index of fair value. In addition to technical indicators, other groups of indicators give a more in -depth vision of the financial and fundamental health of the company, helping investors to make better choices.
A company to monitor, on the three we found, is Okta Inc (Nasdaq :). Even if the company’s share price fell after his quarterly results, he is still likely to go up. Understand how we found this stock using the screen.
How to define your stock scanner for the correction strategy
The main objective of a share portfolio using a correction strategy is to find companies that can be in a long -term upward trend. The best way to do so is to choose companies first with positive yields in the last 3 and 6 months.
The RSI indicator, set below 40 points, will be used to identify companies that are currently in the correction phase.
We add a general value indicator to include only companies with at least 5% increase potential. Using the scanner with these parameters, we found eight companies on the American market that meet the criteria.
The upper panel shows 9 categories, which allow the user to view the selection according to different basic indicators.
The “Insight” panel offers a view of how each company ranks in terms of growth potential and …
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