UPDATE: In addition to the strategy set-up below, you can see another version based on this strategy, “Breaking News“, in the “Samples” section of Trade-Ideas PRO (right click in a window to see this option) or visit it online under our “Browser Quick Start” section: https://trade-ideas.54solutions.com/GettingStarted.html

In recent discussions with Evolution Trading (now known as ‘TUCO Trading’) we developed an alert called, “Unusual number of prints“. The U#P alert looks for a stock that prints the tape more quickly than it normally does at any given moment of the day during the market. It only looks at the number of prints, not the size of the prints. The alert is focused on timeframes of 3 minutes or less.

Each stocks prints at its own rate. The alert knows the historical performance and only triggers itself if the current rate exceeds the historical rate by a ratio greater than 5. This alert is aimed at finding stocks which are just starting to print quickly; we report it as soon as possible. With the recent Winter Olympics in mind, imagine the longer speed skating races. There’s a burst of energy at the sound of the bell, then there’s a settling into positions as the racers plan their strategy for overtaking the competition. As each racer makes his/her move to overtake another or lead, we report that burst of energy.

Strategy: The News Watcher

The idea is to catch what’s moving in terms of volume and price before news on a stock(s) gets out. Partner trading services like Need to Know News and Trade the News use Trade-Ideas strategies similar to this in their news services. They know we will report unusual price and volume movement before news breaks out. As a result they alert their customers of this followed by an update explaining the move.

Who Can Benefit
Anyone who likes reading the tape and certainly trading the news. This often means short term traders and scalpers.

Footnotes

• Relevant scans: Unusual Number of Prints
• Link to other Strategy Sessions here
• Remember that these set-ups are sketches meant to give you an idea how to model your own trading plan. Use this ‘as is’ or modify it to your own liking as many others do. Know, however, that Trade-Ideas.com and all individuals affiliated with this site assume no responsibilities for your trading and investment results. The indicators, alerts and all other features are for research purposes only and should not be construed as investment advice