Free Open Access: 2-Period RSI Below 2
Each day, TradingMarkets publishes a new list of TradingMarkets
Stock Indicators, which are are based upon our latest quantitative research.
We will be featuring 1 list per day, free of charge, to help explain the
methodologies and to coach new users; these lists
highlight trading edges backed by our database of more than 7-million historical
simulated trades.
Today’s focus list from the
indicators is 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 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.
Here is today’s focus list:
Keep in mind that the following stock
is not a trade recommendation, but only an example from a list of our
indicators. Always have your own methodologies and trading strategies in place;
do not blindly other people’s advice.
Let’s take a closer look at the a stock on the list:
Domino’s Pizza
(
DPZ |
Quote |
Chart |
News |
PowerRating)
Despite slumping so far through the month of June, DPZ is still a
strong stock, trading well above its 200-day moving average. Our database of
research, consisting of millions of trades, has shown that a stock trading above
its 200-day moving average that is showing short-term weakness has, on average,
outperformed the S&P over the next five days. With an RSI-2 reading below 2,
this stock is a prime candidate for the TradingMarkets strategy. Our mantra is
to “buy weakness, and sell strength,” and we use our indicators daily to
highlight and exploit market conditions which have historically moved over the
next 5 days.
Check out our
latest quantified research articles
here. If you don’t already have a TradingMarkets subscription, click here
for a free 7-day trial. Check back daily for 7 Trading Ideas for Today,
and develop your own watchlist of stocks with historically-backed edges.
John Lee
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.