This will cover how to make use of all the Bollinger Band Squeeze-related scans, including:
- Bollinger Band Squeeze
- Bollinger Band Squeeze Started
- Bollinger Band Squeeze Ended
- Bollinger Band Squeeze + Lower Band Touch
- Bollinger Band Squeeze + Upper Band Touch
As you may be able to tell by the names, the last four scans are subsets of the first -- the plain old Bollinger Band Squeeze Scan. So those other four scans will have shorter lists of stocks. We'll see why you might want to use one of those scans instead of the primary BB Squeeze scan.Read More ➞
Recently I've had several people ask me about MACD scans. Well I'm glad to announce that I've just added a few to alert/find MACD crossovers. They are:Read More ➞
I like to use these scans to find strong stocks which are in long or intermediate-term uptrends which are experiencing pullbacks. I do that by sorting the results by Grade and then looking at those ranked highest -- A, B, or C. As in the GIF below, after sorting, I'll use the hover/pop-up charts to get a quick veiw of the chart. If it's one I want to explore further, I'll open it in a new browser tab and take a more detailed look after I've gotten through the entire list of scan results.
Combining with other scans
As with most technical analysis signals, they can be enhanced by combining them with other signals/scans or eyeballing the chart for pullbacks to some kind of support (old resistance level turning to support, a trendline or a previous low). So I often look for a confluence of at least two indicators in my trading candidates:
An issue that comes along in the world of pattern recognition is that one signal or trigger to a typical pattern may simply be noise and not an actual signal to an unfolding event. However, when signals begin to line up and you see multiple signals pointing to an outcome you can be more confident in an outcome. When multiple triggers begin to unfold, this is known as confluence and something that traders should look for, to have an edge before entering a trade.
A quick way to find some confluence is to use the Combo Scan. SInce I prefer trading pullbacks, these "Down 3, 4 or 5 Days in a Row" scans are some of my favorites to combine with other scans. Here are some ideas of other scans to combine them with:
- 50 DMA support
- 200 DMA Support
- Calm After Storm
- Doji Bullish
- Hammer Candlestick or Lizard Bullish
- Lower Bollinger Band Touch
- Multiple of 10 Bearish ( could be a bullish setup if the stock snaps back above that multiple of 10 -- or a bearish setup if it follows through)
- Multiple of 10 Bullish
(Updated with an animated GIF showing sorting by Grade and the hover/pop-up charts in action.)
I just made a change to the way the hover charts are launched. It is now easier to know where the charts are available and it should also be simpler to display them on Android devices. You'll now see a little chart icon next to stock ticker symbols in many of the tables around the site. Here's an example (If the image isn't animated, try clicking on it):
On a laptop or desktop computer you can simply hover your mouse pointer (cursor) over the chart icon and that stock's candlestick chart will appear. On mobile devices you can just tap the icon to reveal the chart. A second tap somewhere else on the screen will close the popped-up chart.Read More ➞
Back on February 8th I wrote about the negative divergence I noticed in one of my favorite indicators - the percent of stocks above their 50-day moving averages. If the market is having a healthy advance you should see a lot of stocks participating. That inidcator should be making higher highs along with the indices. The divergence in that indicator is a sign of a rally on poor breadth.
That divergence has been nagging at me since January but I've felt like I had to be a bull given the indices' stubborn advance. Well today it felt like the music stopped in a game of Musical Chairs and people were scrambling to sell. I thought last week's Fed decision to raise interest rates might have been the catalyst for a selloff but that didn't happen (and perhaps that was too obvious). Thankfully my nervousness had me keeping tight stops and I shorted some QQQ ahead of the Fed meeting. I was actually thinking about covering that short after this morning's gap up -- good thing I didn't!
I thought I'd follow up on that previous blog post by showing again how one can get a read on the market's health via some of the site's features. As I've mentioned, it's crucial to get a feel for the broad market's health & direction. I'm often asked which scan/signal is the best one -- but there's no one anser to that. Different things will work in different phases of the market. (I wrote a bit more on that topic in the FAQ) So I've put things on the site to help me do just that.Read More ➞
I'm releasing another new scan / signal today. This one finds stocks forming the handle portion of a cup-with-handle pattern. If you're not familiar with the cup & handle, here's a quick overview:Read More ➞
I'm looking forward to watching some of the presentations over at Chart Summit, a virtual conference of technical analysis. I've been a fan of Brian Shannon's for over a decade and I met Chris Kimble at Stocktoberfest a couple of years ago after watching his impressive talk. So I already know their talks will be great. Judging by some of the talk titles, those videos should be helpful to folks new to technical analysis in figuring out ways to use SwingTradeBot's scans & signals.
Here's the email I got announcing the availability of the Chart Summit videos:Read More ➞
By popular demand, I'm releasing three new scans today They are:Read More ➞
I've been noticing this while reviewing the Genreal Market Overview page for several days now and wanted to highlight it. I've written several times about how I use the "Percent of Stocks Above their 50-Day Moving Averages" (similar to Worden's T2108 indicator) as an overbought / oversold indicator. And I like it much better to signal oversold than overbought.Read More ➞
The other day I was flipping through charts on the top percentage gainers scan and noticed the run EVR has had over the last three months. It's pretty much been straight up (more than 40%) since late October.
Read More ➞