Keeping a stock list and checking it…often.

I have been asked how I calculate the buys and sells, as well as the overbought and oversold, for the stocks in the list. I have made as simple as I can. I use a nine-bar Channel Commodity Index (CCI), but RSI, MACD, Stochastic indicators will work too.

Let’s walk through a recent swing on a stock or ETF — in this example, SPY on the chart below.

At the vertical line, SPY is color-coded in blue which means the CCI is below negative 100 and SPY is on a sell, oversold. As the bar turns green and the CCI moves above negative 100, it…