Did You Catch this 17% Rise in JST?
Each day,
TradingMarkets publishes
7 Trading Ideas for Today, a selection of stocks from our daily indicators. TradingMarkets
Stock Indicators are based upon our latest quantitative research, and
highlight trading edges backed by our database of more than 7-million historical
simulated trades.
On Wednesday,
April 18, Jinpan
(
JST |
Quote |
Chart |
News |
PowerRating) was
the candidate from the
2-Period RSI Below 2
list. These are stocks that have a 2-period RSI reading
below 2 and are trading above their 200-day moving average. Our research shows
that stocks trading above their 200-day moving average with a 2-period RSI
reading below 2 have shown positive returns, on average, 1-day, 2-days and
1-week later. Historically, these stocks have provided traders with a
significant edge.
The
TradingMarkets mantra is to "buy weakness," and that is exactly what you could
have done here. The extremely oversold 2-period RSI levels would have most
traders running for the hills. Instead, TradingMarkets is looking for a bullish
edge at precisely the time when the stock looks most weak.
1-day later, JST closed
+1.6%
2-days later, JST closed +0.3%
5-days later, JST closed +17.1%
Obviously,
results like these do not occur every time, but
our quantified research clearly shows that the edges exist during extreme
oversold or overbought conditions.
Check out our
latest quantified research articles
here. If
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click here
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and develop your own watchlist of stocks with historically-backed edges.
John Lee
Associate Editor