KLSE-SGX Stock Scanning
Stock scanning is a software technology used to scan hundreds of stocks in real-time to see if it meets certain technical criteria. Emerging Asian markets (KLSE, SGX and SET) are easier to scan in real time simply because they are smaller and less liquid than the developed markets of the U.S. and Europe.
For example, KLSE-SGX stocks scanning using Tradestation 2000i, can scan all listed issues in seconds for KLSE-SGX stocks which meet certain technical criteria. This in fact gives us the ability to detect footprints of fast price moving transactions, even in an illiquid stock. Further by connecting directly to the real-time market feed and NOT VIA the Internet, we can get the fastest response times possible.
We believe this technology has application in other Asean markets especially on the SGX.
Many market observers are already expert at reading the normal stock quote screen, advances versus decliners, volume at each stage of the day, top ten traders etc. The biggest advantage for this observer now is the added dimension or ‘lens’, it gives into market behavior, not just the 2-3 issues which you happen to be monitoring.
1. The experienced eye can see an extremely hot days with many issues picking up speed in transactions per minute. With experience one can compare this with previous days and anticipate overall market behavior.
2. We can observe stocks pick up speed towards 4pm after the usual lunch time lull. This gives insight into stocks that may close well and further may open well tomorrow.
3. We can even see forced selling ‘day’s when hot stocks of the previous 3-days, come ‘shooting down’ several points towards 5pm. An experienced market observer may position himself to take advantage of a distressed sale.
The applications are limitless for the expert stocks trader or institutional fund manager.
for a recent example.
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