Skip to main content

Introducing TradeRadar Swing Signals - signs the market is due for a fall?

This weekend I've added another function to the Alert HQ process. We can now provide free swing trading signals based on use of Bollinger Bands.

Previously, we began offering lists of stocks and ETFs that had broken through their Bollinger Bands, either above the upper band (bullish signal) or below the lower band (bearish signal). We call these our Bollinger Band Breakouts. We've taken these breakouts a step further.

Swing Trading Signals --

Our TradeRadar Swing Signals are based on the same kind of breakout combined with a reversal. For a SELL signal, for example, we look for price to climb above the upper band, then fall below the upper band within a time frame comprising 10 days. We look for the price to fall into a range between 2% and 5% below the upper band but still above the 20-day moving average before designating it a SELL signal.

For a BUY signal we look for the opposite setup: price falls below the lower band and recovers upward into a range 2% to 5% above the lower band.

This week's results --

This week we have a total of 509 stocks and ETFs on our list of Swing Signals. After this recent quite rapid run-up in stock prices followed by two days of declines it can be expected that SELL signals might outnumber the BUY signals. It was surprising, however, to see the final tally: 486 SELL signals and only 23 BUY signals. Is it time to put on a few short positions? It sure seems like it. Is it an indication the whole market is poised for a pullback? Well, this situation seems to confirm a few other technical indicators such as the S&P 500 failing to break through above its 50-day moving average again.

Get the free data --

To see this week's list you can check out the TradeRadar Swing Signals page. All 509 stocks are listed, plus we provide a free download in the form of an Excel spreadsheet. In addition to the signal and the stock symbol, we also provide some basic fundamental data to help you select the stocks that are of most interest to you.

This is our first release of the Swing Signals list and I suspect there will be additional improvements as we carry out further backtesting and track the performance of our lists of signals over time. In the meantime, take advantage of our free signals and add a few to your watch list. Let us know in the comments how your trades work out or how you might like to see the process change.


Popular posts from this blog

Brazil - in a bubble or on a roll?

A couple of years ago, no one recognized the real estate bubble even though it was under everyone's nose. Now, analysts and bloggers are seeing bubbles everywhere they look. One of them, they say is in Brazil whose Bovespa stock market index has doubled in the last 12 months. Does the bubble accusation hold water? I don't think so and here are 7 reasons why Brazil is by no means a bubble economy: Exports have held up over the past year thanks to demand from China for Brazil's soya exports and iron ore. This was helped by the the Brazilian government's drive to improve trade links with Asia and Africa. Export diversification, spurred by a more active trade policy and increased focus on "south-south" trade under current president Lula, helped mitigate the decline in demand from OECD (Organization for Economic Co-operation and Development) countries A "sensible" economic framework has been in place since the 1990's. This has included inflation

Unlock Stock Market Profits - Key #1

This is the first in an ongoing series of articles where I discuss what I feel are keys to successful investing. It is based on a post that provides a summary of the ten keys that individual investors should use to identify profitable stock trades. ( Click here to read the original post ) There are two basic steps to investing. First, you need to find stocks that seem to have some potential. Then you have to determine whether these stocks are actually good investments. There are many stocks that at first glance look interesting, but further research reveals that there are too many negatives to warrant taking a position. This first post in the series starts at the beginning: getting good investment ideas. Key #1: If something special is happening to a stock, it will be reflected in some kind of unusual activity in the markets. As individual investors, we will never be the first to know; however, unusual activity can be an early sign that allows us to follow the Wall Street professional

Unlock Stock Market Profits - Key #4

This is the fourth article in a series of posts describing 10 tools to help you identify and evaluate good investing ideas. It is based on a post that provides a summary of the ten keys that individual investors should use to identify profitable stock trades. ( Click here to read the original post ) With this fourth post, we will continue another step along the path of finding stocks that seem to have some potential. The first post in the series discussed how to use unusual activity to identify investing ideas. The second post described how to use stock screeners. The third post described how to use lists of new highs and new lows. This post will focus on identifying social or business trends in order to find investing ideas. Information on new trends might turn up anywhere. In conversation with friends or business associates, in newspapers or magazines, on TV or though your work. The key is to be aware of trends and how they start, stop or change. We'll start by describing what