Here are the 6 technical indicators you need to identify the most oversold stocks and ETFs every day:
- ConnorsRSI, the first and only quantified oscillator for traders to apply to their stocks, ETFs, and options trading
- 2-Day RSI
- 4-Day RSI
- Down Days
- Bollinger Bands® (%b)
- 5 Day Stretch MA
You can learn more about these technical indicators here.
Every decision a trader makes requires a trade off. A cluster of potential buy signals can increase the likelihood of success on an individual trade but it can limit your trading opportunities. An example using today’s data can help quantify that trade off. The table below shows the number of potential buy candidates declines as new indicators are added.
|Indicator||# Trading Candidates|
|Bollinger Bands® (%b)||28|
|5 Day Stretch MA||25|
|Down Days => 6||4|
The easiest way to increase the numbers of trading candidates could be to change the number of Down Days required in the set up. The next table uses the same criteria shown above for all indicators except the number of Down Days. The number of trading candidates increases as the number of Down Days is reduced.
|# Trading Candidates|
|Down Days => 6||4|
|Down Days => 5||4|
|Down Days => 4||19|
|Down Days => 3||25|
Other indicators can also be changed to fine tune the number of trading candidates to meet your preference for the number of trading candidates. Limit orders can then be placed 3-7% below the closing price to enter trades on additional weakness. These orders can be placed before the market opens and trades could be closed when ConnorsRSI moves above 50.
The TradingMarkets Screener allows users to identify stocks and ETFs that have met their selected criteria using recent price data. Click here to see the Most Oversold Stocks & ETFs heading into trading for today.
Users can also access stocks and ETFs that meet their criteria intraday with the TradingMarkets Live Screener. If you are interested in learning more about the TradingMarkets Live Screener or would like to start a 5-day free trial, please click here
Now let’s look at the most overbought and oversold stocks (according to ConnorsRSI) heading into trading for Mar. 11, 2014. ConnorsRSI is a proprietary and quantified momentum oscillator developed by Connors Research that indicates the level to which a security is overbought (high values) or oversold (low values).
DDD (3D Systems Corp) is the most oversold equity with a ConnorsRSI reading of 3.91.
ITB (iShares DJ US Home Construction) is the most oversold non-leveraged equity ETF with a ConnorsRSI reading of 9.18.
DRN (Direxion Daily Real Estate Bull 3X Shares) is the most oversold leveraged equity ETF for the second day in a row with a ConnorsRSI reading of 15.19.
OGXI (Oncogenex Pharmaceuticals) is the most overbought stock with a ConnorsRSI reading of 97.87.
INDY (iShares S&P India Nifty 50 Index Ishares) is the most overbought equity ETF with a ConnorsRSI reading of 88.68.
TradingMarkets Lists provide users pre-populated lists of stocks and ETFs identifying symbols with overbought and oversold ConnorsRSI and Bollinger Bands® readings. The Screener Lists are powered by The TradingMarkets Screener.
All data is as of the end of day on 3/10/2014.