6 Steps: Find a Good Trade in the Rubble

My apologies for not staying on top of posting. CFA time of year again (but, why!?).

Here is a quick routine I used to identify high quality setups in an oversold tape using Market Memory.

Step 1.

Pull a symbol.

image01

Step 2.

Add a filter criteria. In this case, a plain old Bollinger Band. The filter criteria show up in blue highlighting on the chart.

image02

Step 3.

Refine the search. The first Bollinger strike is sometimes noise so we select the second. Also, need to isolate single instances of the event as “anchor dates” for analysis.

image03

Step 4.

Select the historical range (how far in the past you want to look). Select the analysis period (how far after the “anchor date” you want to look).

image04

Step 5.

Analyze preliminary results. Kinda, meh.

image05

Step 6.

Wait a second! Drill down based on the patterns you identify in the Alpha Curves. You might just find something you like…

image06

 

That’s how you uncover opportunity amongst the rubble. Objective analysis. No hot air. So easy even I can do it :)

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