Strategy Session: Best Ways to Find the Tipping Points

Strategy Session: Best Ways to Find the Tipping Points

Mar 13, 2008

New alerts and filters added recently expand the arsenal of ways in which any trading universe can be modeled in Trade-Ideas. We even created some sample strategies to show you how they are used.

Here’s what we did:

  • Added bottoming tail and topping tail alerts.
  • Added new filters to find stocks based on how much the price has moved in the last 5, 10, 15, or 30 minutes.
  • Added new filters to find stocks based on the amount of volume they have traded in the last 5, 10, 15, or 30 minutes.

The tail alerts attempt to find tipping points where movement in one direction is exhausted. Not a bad thing to be looking for in this market. Here’s a good definition of a bottoming/topping tail (for our own Glossary): https://trade-ideas.54solutions.com/Glossary/Topping_Tail.html.

The price and volume filters let a trader define, “How much movement or volume?”, over specific, short-term time frames.

Combine the new filters with the new alerts and you could model scenarios such as:

  • Show me stocks that are making a new 15 minute high after running up at least 70 cents or more with a surge in volume (say 200%) during the last 10 minutes: This strategy finds great opportunities for shorting exhausted stocks during a recent run up:

Strategy Session: Fading 15 minute highs 70 cents move up

  • The strategy below demonstrates the power of Trade-Ideas auto-invert feature known as the “Flip” button. The strategy with a single click shows me stocks that are making new 15 minute lows after running down at least 70 cents or more with a surge in volume (say 200%) during the last 10 minutes: This strategy finds great opportunities for buying oversold stocks during a recent fall:

Strategy Session: Fading 15 minute lows 70 cents move down

Footnotes

  • Link to other Strategy Sessions
  • 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
  • See this video on our Collaborate function to learn how to open these strategies inside Trade-Ideas PRO