Free Open Access: 5+ Consecutive Lower Lows
Each day, TradingMarkets publishes a new list of TradingMarkets
Stock Indicators, which are are based upon our latest quantitative research.
We will be giving readers free access to 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 free
focus list comes from our
5+ Consecutive Lower Lows list,
which will be available until around 1 PM tomorrow afternoon. 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 closer look a chart from the list above. Keep in
mind that this is only one example from the indicator list, and that we are not recommending a trade
in this particular stock. Traders should always create individual focus lists
and radar screens based on their own information and trading strategies, instead
of blindly following other people’s recommendations.
Colgate-Palmolive
(
CL |
Quote |
Chart |
News |
PowerRating)
CL is a strong stock, confirmed by the fact that price is trading
above the stock’s 200-day moving average. The TradingMarkets mantra is to “buy
weakness and sell strength,” and that is exactly the mentality that this setup
embodies. Our historical research of literally millions of trades confirms that
the edge exists in strong stocks that are showing short-term weakness. In CL’s
case, we see a stock that has had a few bad days in a row, despite being backed
by a strong track record over the last few months.
You can find the full list
here. Also, 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.