One of the things I like to look at are multiple signals confirming a market is overbought or oversold. The more signals the better and we have been able to quantify this in a number of strategies we use.
A few months ago we launched our High Probability ETF Trading Software which gives you the signals from our new book High Probability ETF Trading, now in paperback. The web based software covers the entire universe of liquid ETFs and not only gives you the buy and sell signals, it also tells you the historical percent correct and average gain per trade for each of the signals.
Last week there were dozens of buy signals triggered. That was a sign that a large market move was likely near and that is exactly how it played out yesterday. In fact, the moves were so big that the majority of the buy signals turned into profitable exit signals on the close yesterday.
When you see an ETF triggering multiple buy signals, it’s a very good sign. When you see multiple ETFs triggering multiple buy signals, it’s an even stronger sign and something that you can look forward to in your trading over and over again.
Backtested ETF Trading Strategies! In just 5 minutes a day get handpicked ETF trading setups that are high probability, with Larry Connors’ Daily Battle Plan. Click here now for your free 7 day trial.
Larry Connors is CEO and Founder of TradingMarkets.com and Connors Research.