Understanding the Change in 5 Days Percent Filter

The "change in 5 days" filter compares the current price to the price 5 days ago, measured in percentage. These are trading days, not calendar days. So this filter looks at changes in the last week.

This filter uses the standard percent formula: (new value – old value) / old value * 100.

The current price is based on the last print. There is no smoothing or averaging. This updates before, during, and after market hours.

The old price is always based on the close. If you are look at the Up in 5 Days filter, then you are comparing the current price to the close 6 days ago. If you are looking at this filter at the open, then you will see the price change for exactly 5 days. If you are looking at this filter one hour after the open, then you will see the change for 5 days and one hour. At lunch time you will see the change for 5½ days. At the close you will see the change for 6 days.

Change in 5 Days Percent Filter Settings

The settings of each Trade Ideas filter are defined in the Window Specific Filters Tab located in the Configuration Window of your Alert/Top List Window.

Here is how to setup the filter in your configuration window:

• Set the min value to 10 to see stocks which are up at least 10% from 5 days ago.

Using the Change in 5 Days Percent Filter

Several trading strategies can be employed with the Change in 5 Days Percent filter. Here are a few examples:

Trend Following: Traders aim to capitalize on the continuation of existing price trends. If the change in the stock's price over the past five days indicates a consistent upward or downward trend, traders may consider entering positions in the direction of the trend. For example, if the stock has experienced a significant positive change over the five-day period, it may signal an uptrend, prompting traders to enter long positions. Conversely, if there's a significant negative change, it may indicate a downtrend, leading traders to consider short positions.

Reversal Trading: Traders aim to identify potential reversal points in the price movement. If the change in the stock's price over the past five days suggests that the price has moved significantly in one direction and may be nearing exhaustion, traders may look for signs of a reversal. For example, if the stock has experienced a strong uptrend over the past five days and the change is showing signs of slowing down or reversing, traders may anticipate a potential reversal and adjust their positions accordingly.

Volatility Trading: Traders aim to profit from short-term price fluctuations and increased volatility. If the change in the stock's price over the past five days indicates increased volatility, traders may look for opportunities to enter short-term trades to capitalize on price movements. They may employ strategies such as scalping or day trading to take advantage of short-term price fluctuations.

FAQs

What does "change in 5 days (%)" mean?

• "Change in 5 days (%)" refers to the difference in the stock's price between the current trading day and the closing price five trading days ago, measure in percentage. It indicates how much the stock's price has changed over the five-day period.

Is the "change in 5 days (%)" filter used alone or in conjunction with other indicators?

• While the "change in 5 days (%)" filter offers insights into short-term percentage price movements, traders often combine it with other technical indicators or fundamental analysis to confirm signals and make informed trading decisions.

How is the "change in 5 days (%)" calculated?

• The calculation involves subtracting the stock's price from five trading days ago from the current price to determine the difference in price over the five-day period. This difference is then divided by the price from five days ago and multiplied by 100 to express the change as a percentage.