Blog Posts Tagged with Pullbacks
Using the Bollinger Band Squeeze Scans
This will cover how to make use of all the Bollinger Band Squeeze-related scans, including:
- Bollinger Band Squeeze Stock Screen
- 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 ➞
Using the Down 3, 4 & 5 Days in a Row Scans
These three scans: Down 3, 4, or 5 Days in a Row, are pretty straight-forward. They do exactly what their names say -- find stocks which have closed lower multiple days in a row.
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