Are Stocks That Fall 5 Straight Days Worth Buying?
Today’s
PowerRatings article will look at how to combine our new 5+ Consecutive
Lower Lows list with PowerRatings to maximize our edge in the markets.
Click here to go to our new indicators page.
These are stocks that have made a lower low for five or more
consecutive days and are trading above their 200-day moving average. Our
research shows that stocks trading above their 200-day moving average that make
lower lows for five or more days have shown positive returns, on average, 1-day,
2-days and 1-week later. Historically, these stocks have provided traders
with a significant edge. To learn more about our research into stocks that make
five or more consecutive lower lows, and how to use this information,
click here.
Let’s take a look at the 5+ or More
from the close of 2/07/2007:
Here is a chart of GAP:
Great Atlantic & Pacific
(
GAP |
Quote |
Chart |
News |
PowerRating)
From the list above we can see that GAP had a PowerRating of 7 on
2/08/07. The high PowerRating combined with being down for 5+ consecutive
sessions made GAP a strong buy on 2/08/07. Over the next 4 sessions, GAP gained
nearly 3%.
If you would like to attend a free class which covers this
research and strategy further, please
click here
for the calendar of the upcoming online classes. Topics
covered include our latest research on
entries and exits, and
how to use PowerRatings with our new
Preferred Stock List.
For a free PowerRatings trial,
click here. If
you have any questions about PowerRatings or the new Stock Indicators please
feel free to email us or call 213-955-5858 ext 1.
Darren Wong
Associate Editor
Reminder: We are in no way recommending the purchase or short sale of these
stocks. This article is intended for education purposes only. Trading should be based on your own understanding of market conditions,
price patterns and risk; our information is designed to contribute to your
understanding.