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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.

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