Asset Filter Question

What does anyone use to find highly devalued assets? I’m looking into trying to find an instrument thats 80+% undervalued (daily) and sort through them. What are the best filters for this stuff?

Normally, an approach based on value is applicable to stocks, as a forex pair ratio is worth exactly what it is currently worth. Are you trying to find under-valued shares?

The word “devalued” in a question always rings something of an alarm-bell for me (just as the words “overbought” and “oversold” do) because it instinctively strikes me as a term that begs a few questions, raises some assumptions, and needs a clear definition.

You must be talking about individual stocks?

Maybe [I]Sharescope[/I] and/or [I]ProRealTime[/I] are worth a look? I certainly know successful traders who recommend each.

Good point on the stock outlook - totally forgot that is more FX focused. Where I was trading they offer more than FX so I wanted to look at some commodities and stocks and filter then quickly but they didnit offer this with their setup. I didnt know about Sharescope or ProRealTime - I will check them up - thanks!

Cheers EmmitTrader - If you want to look for undervalued stocks, because they have far more fundamental data available about their companies, you could do worse than research Jim Slater’s approach. Its conventional and totally FA-based but objective and rational. See his The Zulu Principle.

Abnormal reaction on some fundamental events like talking heads, NFP, differnet economic reports and political uncertainty (as seen on Pound). As a technical backup to my views there is ATR and RSI combo on my Tickmill platform which sometimes provide good confirmation for my orders.

Could you please elaborate more on how you use the combination of those indicators?