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eTraderZone Triple-Points signal is a scan combining three technical analysis to find a best reversal point of a stock. These three Technical Analysis are:
- Relative Strength Index
- MACD
- Bollinger Bands
- Volume.
Most technical analysis will prompt for a signal when a stock reached overbought / oversold or reached a breakout point. It would be risky to trade base on a signal given by single analysis because every analysis has its drawbacks, hence we are providing you with a scan that combining the three analysis above and volume to determine a stronger and valid entry point.
Our scan will first search for breakout in Bollinger Bands, preferably open and closed for the day are above or below and (20, 2) bands. When a breakout is found we will then confirm it with RSI and MACD, Both RSI and MACD must be at the maximum and minimun points. We will then further confirm it to make sure that no volume increase for that day.
For RSI, we look for stock that break above 70 or below 30, and we further confirm it with MACD whereby MACD must be at least at 3.6% of the latest closing price either above or below the zero line. For Volume, we make sure that volume is not 4 times of the average of the past 20 days volume.
- Bollinger Bands - Open and close above upper band or below upper band.
- RSI - Above 70 or below 30.
- MACD - Fast line is more than 3.6% of the current price, either above or below Zero line.
- Volume - Less than 4 times of the average of the past 20 days volume.
Triple-Points gave a very short term trading signal, a tight stop lost must be placed and realize profit whenever there is.
PBR
There are few signals given by tripple-point scan for Petroleo Brasileiro (NYSE:PBR), and all the 3 signals are further confirm by RSI and MACD.
The price pulled back in the next few days.
AEP
American Electric Power (NYSE:AEP) gave tripple-point signal when the price broke below the lower Bollinger Bands and was then confirmed by RSI and MACD, where RSI was below 30 and MACD more than 3.6% of the closing price.
CHK
Chesapeake Energy (NYSE:CHK) shown another triple points scan enty where price break above Bollinger Bands, RSI reached above 70 and MACD is more than 3.5% of the latest closing price.
The price revert just after a few days.
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