• ConnorsRSI
    • Learn More About ConnorsRSI
    • Recent Articles
  • Store
    • Books
    • Free First Chapters
    • Free Newsletters
  • PowerRatings
    • Buy the PowerRatings Algorithm
    • Recent Articles

TradingMarkets.com

Quantified Stock Market Trading Strategies & Systems

  • Home
  • Latest Newsletters
  • Articles
    • Connors Research
    • ETFs
    • Options
    • Stocks
    • Volatility
    • Contributors
      • Larry Connors
      • Kevin Haggerty
      • Matt Radtke
  • Education
    • Trading Lessons
    • Connors Research
    • Glossary
      • Moving Averages
      • Options (Options Trading)
      • VIX
    • Interview Archive
    • Videos
  • Guidebooks
  • Courses
  • Store
  • April 19, 2018

Thirteen Stocks Set Up as Potential ConnorsRSI Pullback Strategy Buys

July 25, 2014 by Michael Carr

Larry Connors will be managing money on a full-time basis beginning in 2015. Therefore, this summer will be the final time that he will be teaching his strategies and research to the public.

Starting in July and up through a live 2-day event Larry will be holding in the NYC area in September, he will be teaching his “Top 20 Strategies”.

The Top 20 Strategies represent the best of Larry Connors’ research. The strategies and research are not only what he believes to be the best; they are also the ones that the most number of customers have the highest level of success with.

Larry is hopeful that in teaching these strategies for the final time, you will have the same success. 

To learn more about the Top 20 Strategies
to be taught for the final time, please click here.

♦♦♦

The ConnorsRSI Pullback Strategy is a high probability trading strategy. More than twenty variations of the strategy have win rates greater than 75%.  Average gains per trade for the top twenty variations range from 6.7% to 13%. These variations are fully disclosed in the recently updated guidebook, An Introduction to ConnorsRSI, 2nd Edition, which can be downloaded for free here. This strategy identifies oversold stocks and takes advantage of the tendency for prices to revert to the mean in the short term.

Here are the entry rules for the ConnorsRSI Pullback Strategy:

  1. The stock price must be above $5 per share.
  2. The stock’s average daily volume over the past 21 days (one trading month) must be at least 250,000 shares per day.
  3. The stock’s 10-day Average Directional Index (ADX) is above 30.
  4. Today the stock’s lowest price is at least W% (W = 2, 4, 6, or 8) below the previous day’s close.
  5. Today’s close is in the bottom X% (X = 10 or 25) of the day’s range.
  6. The ConnorsRSI value of the stock is below Y, where Y = 5, 10, or 15.
  7. If the above rules are met today, buy the stock tomorrow on a further intraday limit Z% below today’s closing price (Z = 4, 6, 8, 10).
  8. Exit the position when the stock closes with a ConnorsRSI value above N (N = 50, 60 70 or 80), exiting at the closing price.

Let’s look at the reason for each rule.

Rules 1 and 2 are liquidity filters. By using highly liquid stocks we minimize the trading costs and maximize the probability of having orders filled. Illiquid stocks can have large spreads between the bid and ask prices which makes them costly to trade. There also might not be enough market depth to ensure an order is filled at the desired prices.

Rule 3 ensures the stock is trending. ADX measures the strength of a trend but doesn’t offer any information about the direction of the trend. Rules 4, 5 and 6 are used to quantitatively define a downtrend. Rule 7 enters the trade and rule 8 defines the exit for the trade.

Using TradingMarkets Live Screener we can find the information needed to complete an initial screen for buy candidates under this strategy. Although the Screener is a starting point to implement this strategy, the calculations required for rule 5 will need to be done separately. You would then need to enter orders for rule 7 and track open positions to identify when rule 8 is triggered.

The stocks set up as potential buys for Monday are listed in the table below. These stocks meet the setup rules (rules number 1 through 6 above). This list uses a value of 2 for W in rule 4, a value of 25 for X in rule 5 and a value of 10 for Y in rule 6.

list

Now let’s look at the most overbought and oversold stocks (according to ConnorsRSI) heading into trading for July 28, 2014. ConnorsRSI is a proprietary and quantified momentum oscillator developed by Connors Research that indicates the level to which a security is overbought (high values) or oversold (low values).

5 Stocks Due For a Bounce

For the second consecutive day, CPSS (Consumer Portfolio Services) is the most oversold stock with a ConnorsRSI reading of 1.78.

5 ETFs Due For a Bounce

XSD (SPDR S&P Semiconductor ETF) is the most oversold non-leveraged ETF with a ConnorsRSI reading of 8.15.

5 Leveraged ETFs Due For a Bounce

SOXL (Direxion Daily Semicondct Bull 3X Shares) is the most oversold leveraged ETF with a ConnorsRSI reading of 8.81.

5 Stocks Due For a Pullback

QLIK (Qlik Technologies) is the most overbought stock with a ConnorsRSI reading of 99.03.

5 ETFs Due For a Pullback

SOXS (Direxion Daily Semicondct Bear 3X Shares) is the most overbought ETF with a ConnorsRSI reading of 91.26.

TradingMarkets Lists provide users pre-populated lists of stocks and ETFs identifying symbols with overbought and oversold ConnorsRSI and Bollinger Bands® readings. The Screener Lists are powered by The TradingMarkets Screener.

All data is as of the end of day on 7/25/2014.

Filed Under: Analytics, Connors Research, Recent Tagged With: ETF Trading, Market Briefing, stock trading

Have You Switched To ConnorsRSI?

ConnorsRSI is the first Quantified Momentum Indicator -- the next-generation improvement to traditional RSI indicators. At Connors Research, we are using it as an overlay to many of our best strategies to make them even better -- now you can, too.

Enter your email address to get your FREE download of our Introduction to ConnorsRSI - 2nd Edition - Trading Strategy Guidebook with newly updated historical results.

About Michael Carr

An Introduction to ConnorsRSI (2nd Edition)
Learn everything about ConnorsRSI, the first quantified technical indicator, with our FREE newly updated introductory guidebook! Includes rules, strategy, results and much more...


Recent Analytics Articles

  • Back Tested RSI25 Strategy Shows Two Buys for Monday
  • Two Leveraged ETFs with High Probability Buy Setups
  • Moving Averages Highlight Three Potential Buys for Monday
  • Two International ETFs for Monday Morning

View All Recent Articles >>

ConnorsRSI Live Market Conditions
ETFSymbolConnorsRSI
Loading...
Live ConnorsRSI Quotes
ConnorsRSI Trading Strategy Series
  • Options Trading with ConnorsRSI
  • S&P 500 Trading with ConnorsRSI
  • Short Selling Stocks with ConnorsRSI
  • Trading Leveraged ETFs with ConnorsRSI

Company Info

The Connors Group, Inc.
185 Hudson St., Suite 2500
Jersey City, NJ 07311
www.cg3.com

About Us

About
Careers
Contact Us
Testimonials
Link To Us

Company Resources

Help
Privacy Policy
Return Policy
Terms & Conditions

Properties

TradingMarkets
PowerRatings
Connors Research

Connect with TradingMarkets

  • Facebook
  • Google Plus
  • Linkedin
  • RSS
  • Twitter
  • Youtube
Google+

Subscribe

TradingMarkets Newsletters including the Connors Research Trading Journal

© Copyright 2018 The Connors Group, Inc.

Copyright © 2018 · News Pro Theme on Genesis Framework · WordPress · Log in

Disclaimer: The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.

All analyst commentary provided on TradingMarkets.com is provided for educational purposes only. The analysts and employees or affiliates of TradingMarkets.com may hold positions in the stocks or industries discussed here. This information is NOT a recommendation or solicitation to buy or sell any securities. Your use of this and all information contained on TradingMarkets.com is governed by the Terms and Conditions of Use. Please click the link to view those terms. Follow this link to read our Editorial Policy.

Return to top of page

Copyright © 2015   Developed by Memento Marketing;