Skip to main content

New Swing Trading Signals for March 27, 2009

Last week we introduced our first list of TradeRadar Swing Trading Signals and this week we've done some work to refine how those signals are generated.

Our TradeRadar Swing Signals are based on Bollinger Band breakouts combined with a reversal. Here is our updated methodology:
  • For a SELL signal we now look for price to climb 2% 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 0.25 Standard Deviation and 1.5 Standard Deviations below the upper band but still above the 20-day moving average before designating it a SELL signal. (Remember that Bollinger Bands are typically defined as the levels two standard deviations above and below the 20-day moving average.)
  • For a BUY signal we look for the opposite setup: price falls 2% below the lower band and recovers upward into a range 0.25 Standard Deviation and 1.5 Standard Deviations above the lower band.

This week's results --

This week we have a total of 317 stocks and ETFs on our list of Swing Signals. Refining our selection criteria has reduced the total number of signals generated and hopefully eliminated the majority of false signals that might lead to whipsaws.

Similar to last week, stock price gains in the first part of the week were followed by a decline. Once again as we crunch the week's data, the SELL signals outnumber the BUY signals.

Here is the final breakdown: 251 SELL signals and 66 BUY signals.

Last week I asked whether it might be time to put on a few short positions. Well, last week was certainly too early as major indexes added over 6%. With our refined algorithm and the market seemingly getting ahead of itself, this week's emphasis on SELL signals may be a bit more accurate. We shall see...

Get the free data --

To see this week's list you can check out the TradeRadar Swing Signals page. All 317 stocks are listed, plus we provide a free download in the form of a CSV text file which can be easily opened in Excel or any text editor. 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.

Future Improvements --

I am planning to eliminate any stocks trading for less than $1.50 in next week's list. At these levels, a few pennies can translate into enough volatility to generate false signals. If you have any objections or suggestions, please leave a comment.
Labels:

Comments

Post a Comment

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
4 comments
Read more

Trade Radar gets another update

Some of our data sources changed again and it impacted our ability to load fundamental/financial data. In response, we are rolling out a new version of the software: 7.1.24 The data sourcing issues are fixed and some dead links in the Chart menu were removed. So whether you are a registered user or someone engaged in the free trial, head over to our update page and download the latest version. The update page is here:   https://tradingstockalerts.com/software/downloadpatch Contact us if you have questions or identify any new issues.
Post a Comment
Read more

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
2 comments
Read more