Better than patience

There are certain stocks where the price is above the 20 day SMA consistantly for many days. My algorithm usually picks these stocks when there is a 4% price increase on heavy volume. However, the day after these stocks are flagged, the price tends to decrease to just above the 20 day SMA and then increases again. This is a good strategy for patient traders, and it takes a week of small loses to be offset by a hefty gain. However, it would be a better strategy to pick these stocks when the price is close to the 20 day SMA so there aren't small loses after acquiring the stock, only overall gains. I'll have to adjust the algorithms to look for these stocks. If the 20 day SMA is increasing for at least 22 days, and the stocks price is above the 20 day SMA for all those days, then flag the stock when it's within 2% of the 20 day SMA value instead of looking for price and volume increase. The gains should be better. These stocks will have an "&" preceeding character. Also, to eliminate some of the stocks, the SMA 20 rate must be increasing by 0.909% or better as well as meet the slow stochastic efficiency criteria. To eliminate false signals, stocks that have had a 10% single day increase over the past 22 days are eliminated, as are stocks where the current price is less than the price from 4 and 6 days ago.

Picks at end of day 10/17/2007:
&ARAY, ACCURAY INCORPORA (Google Yahoo Earnings Chart) $18.3 - $17.89
+*!ASTI, ASCENT SOLAR TECH (Google Yahoo Earnings Chart) $17.22 - $15.33
+*!BCSI, BLUE COAT SYS INC (Google Yahoo Earnings Chart) $51.56 - $48.62
+CICI.OB, COMMUNICATION INT (Google Yahoo Earnings Chart) $0.38 - $0.25
+CTRP, CTRIP.COM INTL LT (Google Yahoo Earnings Chart) $52.14 - $49.42
&CWST, CASELLA WASTE SYS (Google Yahoo Earnings Chart) $14.52 - $14.35
+!DGIT, DG FASTCHANNEL IN (Google Yahoo Earnings Chart) $24.99 - $22.46
+^EBAY, EBAY INC (Google Yahoo Earnings Chart) $40.6 - $38.88
&ECMV, E COM VENTURES IN (Google Yahoo Earnings Chart) $25.41 - $24.67
+!GCH, GREATER CHINA FD (Google Yahoo Earnings Chart) $40.75 - $39.76
+GNVC, GENVEC INC (Google Yahoo Earnings Chart) $2.82 - $2.44
+*^!GSH, GUANGSHEN RAIL CO (Google Yahoo Earnings Chart) $45.22 - $41.32
&HANS, HANSEN NATURAL CO (Google Yahoo Earnings Chart) $65.54 - $64.64
&JRCC, JAMES RIVER COAL (Google Yahoo Earnings Chart) $7.25 - $7.09
+^*NVEC, NVE CORP (Google Yahoo Earnings Chart) $32.5 - $31.01
*ONXX, ONYX PHARM INC (Google Yahoo Earnings Chart) $43.61 - $42.53
&OPTM, OPTIUM CORPORATIO (Google Yahoo Earnings Chart) $11.1 - $10.85
+*PTN, PALATIN TECH INC (Google Yahoo Earnings Chart) $0.4 - $0.33
+!PTT, VCG HOLDING CORP (Google Yahoo Earnings Chart) $9.16 - $8.61
+QUIK, QUICKLOGIC CORP (Google Yahoo Earnings Chart) $3.69 - $3.36
+STP, SUNTECH POWER HLD (Google Yahoo Earnings Chart) $44.39 - $42.2
^UST, U S T INC (Google Yahoo Earnings Chart) $51.72 - $51
+^UTHR, UNITED THERAPEUTI (Google Yahoo Earnings Chart) $70.41 - $68.45
+^!WBD, WIMM BILL DANN AD (Google Yahoo Earnings Chart) $121.18 - $109.81
&WSPI, WEBSITE PROS (Google Yahoo Earnings Chart) $10.73 - $10.6
+!WWAT.OB, WORLDWATER & POWE (Google Yahoo Earnings Chart) $1.9 - $1.71
+!YHOO, YAHOO INC (Google Yahoo Earnings Chart) $28.82 - $28
+*!YZC, YAZHOU COAL MNG C (Google Yahoo Earnings Chart) $115.7 - $106.61
+**!ZNH, CHINA SOUTH AIR L (Google Yahoo Earnings Chart) $77.97 - $73.2