FDN
▼ Bearish
Streaming Alert (Scanner)
Negative Market Divergence Alert (FDN)
Find stocks moving below what QQQ predicts, including before and after hours, in real time, with Trade Ideas Streaming Alerts (Scanner). A negative market divergence is when a stock moves below the price expected from its relationship to QQQ. It is tuned for low-volume times like premarket and after hours.
Watch the market turn, stock by stock.
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Streaming Alerts push each Negative Market Divergence alert the moment it triggers.
How Trade Ideas finds it: by default, the 'Negative Market Divergence' alert will appear when the stocks move away (-) from the expected value relative to QQQ. See Trade Ideas plans and pricing to run it live.
How the Negative Market Divergence alert works
This alert is similar to the Sector Breakdown (from close) alert. This is optimized to work well in the low volume times, such as before and after official market hours.
The Sector Breakdown (from open/close) alerts look at a number of possible sectors and indexes and choose one to match each stock. They make this choice based on how well the prices match during a typical trading day. The market divergence alerts try to compare each stock to QQQ.
Trader tip
This is a popular point of comparison because it is a broad-based index and it is so liquid, even before and after normal trading hours. The market divergence alerts also use a slightly different algorithm than the previous alerts to compare the stocks. This algorithm pays more attention to the previous close and minimizes the effects of the opening prices.
As with the previous alert types, some stocks do not usually move with QQQ, so we do not report alerts for those stocks.
Example
If you do a lot of trading before the open or in other low volume times, this alert is ideal. But it is also useful to traders who only trade at the open and other high-volume times. For instance, take the strategy of open order enveloping. In this strategy traders assume that the specialist is manipulating the opening print, and they try to take advantage of this.
They start shortly before the open by using yesterday's close and the current price of the futures to predict a reasonable opening value for a stock. They assume that the actual opening price will often differ from the expected value but will usually move toward that value after the open. After placing your initial orders, use the market divergence alerts to watch your stocks.
Key point
You will see alerts if the stocks move away from the expected value, moving against you. You will see no alerts as long as the stock moves toward the expected value.
Default settings
By default, the 'Negative Market Divergence' alert will appear when the stocks move away (-) from the expected value relative to QQQ.
Custom settings
Settings
For 'Negative Market Divergence' alerts, you have the option to use an alert specific filter. This filter is located immediately to the right of the corresponding alert and is always optional. You can decide to leave it blank if you want to receive more alerts, or you can fill it in to restrict the number of alerts you receive. This filter allows you to specify the quality of the alert. When you set a higher number for this filter, you are telling the alerts server to display only alerts that meet a higher quality standard, resulting in fewer alerts being shown.
When setting an alert for 'Negative Market Divergence', the user can filter the alert by minimum percentage changed. This value is always displayed in the alert description. The server reports each integer value, and no others. It never does any rounding. The minimum value is different for different alerts.
Key point
Typically, each symbol will only report one of these alerts per day at each % level. However, after recovering from a bad print, or other major changes in the price, the server may repeat some alerts.
What the alert shows you
The alert's description will provide a more comprehensive breakdown of the alert.
The quality value on a scan using the 'Negative Market Divergence' alert will show the % below expectations that a stock is trading.
Related alerts
Filters to pair with the Negative Market Divergence alert
FAQ
Which stocks are weak while the market moves today?
Turn on the Negative Market Divergence alert (FDN) in Trade Ideas Streaming Alerts. By default, the 'Negative Market Divergence' alert will appear when the stocks move away (-) from the expected value relative to QQQ.
What is the Negative Market Divergence alert?
A negative market divergence is when a stock moves below the price expected from its relationship to QQQ. It is tuned for low-volume times like premarket and after hours.
How do I see fewer, higher-quality Negative Market Divergence alerts?
Use the optional alert-specific filter immediately to the right of the alert. A higher number tells the alerts server to show only higher-quality alerts, so fewer appear. Leave it blank to see more.