Common Indicators Uncommon Profits (CIUP)*
A Novel Approach To ATR, ADX, OBV and RSI Indicators To Screen Out Stocks With Profit Potential
- Our Best-Selling Stock Screener!
Now available in Metastock and Shareinvestor Station!
Professional traders make money consistently in the markets by analyzing the trends and patterns of stock market data. While they cannot 100% predict the exact outcome of the market because of the many uncertainties involved, they can and do make a better information trading decisions by using tools and technical analysis to identify trading opportunities.
One of the common tools that traders use is technical indicators for example RSI Indicator.
The challenge for most investors who do not trade full time is that they cannot monitor the markets regularly or have enough knowledge and skills to know how to use technical indicators such as RSI Indicator. There may be plenty of freely available resources or even books on technical analysis that anyone can learn but it will take some time before a novice can fully understand how an indicator works, what more use it to identify stocks that has profit potential and the confidence to execute the trade.
Understanding that this is a common problem, Asia Charts have developed a set of stock screeners that automatic detect a list stocks with profit potential using common indicators with a novel twist. We call this premium screener “Common Indicators, Uncommon Profits” (CIUP).
4 Trading strategies are:
- RSI “POP ®
- OBV Breakout
- Power ADX ®
- ATR Squeeze ®
RSI “POP” ®
“ Stock tends to POP like champagne at the right pressure”
RSI Indicator is reliable in ranging (sideway) market but disastrous when applied to trending market. Traders who use RSI would also have observed that what is overbought stays overbought and what is oversold stays oversold.
RSI “POP” ® is a powerful technique developed to capitalize on this phenomenon.
When RSI hit overbought / oversold region, it is taken as an alert signal. A RSI POP is defined as shown:
Establish a long / short position when RSI re-enter overbought / oversold region.
Exist when RSI crosses 50 line.
RSI may be used as short-term trading or for position trading using different exit strategies.
The Metastock Addon will identify RSI POP ® entry signals for both long and short trades.
“ In price there is knowledge, in volume there is truth ”
The idea behind OBV Breakout is that changes in the OBV will precede price changes. Unknown to many traders, volume is the cause and price is the effect. Understanding the cause (Volume) we have a better chance of understanding the effect (Price).
OBV being a volume-based indicator can thus be used as a leading indicator.
In OBV Breakout strategy, we look OBV breakout PRIOR to a breakout in price. This effectively places the trader ahead of the pack.
Power ADX ®
“Trend is your friend”
Power ADX is a trend continuation strategy. The objective is to identify safe entry on the dip in a strong trending stock. Trading success is achieved by eliminating riskier trades. Losing traders place too much emphasis on predicting the direction of the market. Winning traders let price tell them when the direction has changed. Trend continuation using Power ADX helps to improve the odds
Best trend trading opportunities are found when ADX is strong and rising. Power ADX identifies long and short setups after retracement or consolidation.
ATR SQUEEZE ®
“ Low volatility begets high volatility, and high volatility begets low volatility.”
Volatility is cyclical in nature. If it is a quiet day, expect a storm. If it is stormy day, expect quiet.
Range Contraction follows Range Expansion. ATR Squeeze exploits the cyclical nature of volatility and look for extremely low volatility as a precursor of high volatility.
In ATR Squeeze, Average True Range (ATR) is used to define Range Contraction and Double Moving Average as confirmation of Range Expansion. A combination of these 2 contradicted theories (Range Contraction and Range Expansion) can be very powerful.
ATR Squeeze requires that a period of low volatility be followed by a period of unusually high volatility before looking for our entry. Traders can confidently position themselves before the explosion in price.
Our CIUP screeners are easy to use and help the investors to reduce the tedious tasks of manually applying indicators to random stocks to pick out trading opportunities. Our screeners allow novice traders to highlight potential stocks with entry setups clearly defined. In addition, our novel approach to these common indicators can help traders to maximize profits and avoid riskier trades.
This CIUP set comes with installation instructions and guide on how to use the indicators.
Start profiting from it now! CIUP for Shareinvestor Station
CIUP for Metastock
* Runs on Metastock (Support version 11 or higher and EOD Data from Data Link).