Powertrend Volume Range Filter Strategy wbburgin by wbburgin

Powertrend Volume Range Filter Strategy wbburgin by wbburgin

Of course, not every trade in this service will deliver winners like we’ve outlined above. But, fortunately, Bernie has found a better way…where the returns are faster, you risk less money, and your gains can be huge. This chart of current growth leader Zoom (ZM) is vastly outperforming the Nasdaq and S&P indexes. The S&P benchmark is actually declining (the S&P chart is in black on the chart) compared to Zoom. With growth stocks, this is especially true as they are inherently volatile. The leaders will vastly outperform the indexes, while the laggards will underperform.

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The Power Trend turns on when 1) the 21-day moving average is above the 50-day moving average for at least 5 consecutive days without a break below the 50-day moving average. 2) The index closes up or flat for the day, 3) The 50-day MA is in an uptrend for at least 1 day, and 4) the index low has been above the 21-day MA for 10 consecutive days. Remember, about 75% of stocks will follow the market indexes, so when a power trend appears the majority of stocks will follow this power trend. If you prefer to keep your charts clean, the stoplight option may be your best bet.

• There is a Power Trend “circuit-breaker” when the price breaks below the 50-day line and closes 10% or more from a recent high.
• If you are new, or just looking for guidance, here are some helpful links to get you started.
• UseThinkScript is the #1 community of stock market investors using indicators and other tools to power their trading strategies.
• The Power Trend is designed to keep you fully invested during these powerful uptrends.
• With thousands of topics, tens of thousands of posts, our community has created an incredibly deep knowledge base for stock traders.
• Power trends do not happen frequently but when one starts it usually leads to a strong sustained uptrend.

Power Trend – Spot Powerful Uptrends

This indicator is for informational and educational purposes only. We accept no liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from use powertrend of or reliance on this indicator. There is a Power Trend “circuit-breaker” when the price breaks below the 50-day line and closes 10% or more from a recent high.

You, of course, want to be invested with the leaders that are outperforming. The Power Trend is designed to keep you fully invested during these powerful uptrends. Having a Power Trend on will give you the confidence to invest more during a period where the risk/reward is more heavily tilted in your favor than during regular market conditions. In addition to the visual signals mentioned above, you can also set Alerts to be notified when a Power Trend starts or ends. This is one of the more unique and helpful features of this indicator. The specifics of a Power Trend were defined by Mike Webster, Justin Nielsen and Charles Harris, while working with William O’Neil at IBD.

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Lifetime Investor is not financial advisors or investment advisors and are not licensed to sell securities or investments. The information should not be relied upon for purposes of transacting securities or other investments. Your use of the information contained herein is at your own risk. We cannot and do not make any promises or guarantees about your ability to get results or earn any money with our ideas, information, tools, or strategies. The price action in a major index, such as the Nasdaq Composite, is the source for determining a Power Trend’s status. Using an index is based on the definition of a Power Trend from Market School.

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• But, at Schaeffer’s, we use strict trading rules to cut our losses short.
• This chart signal displays green, yellow or gray depending on the status of the Power Trend.
• This indicator is for informational and educational purposes only.
• If you prefer to keep your charts clean, the stoplight option may be your best bet.
• The start of a power trend is the ideal time to get more aggressive in your trading.
• The price action in a major index, such as the Nasdaq Composite, is the source for determining a Power Trend’s status.

Adding positions or adding shares to positions that are working (pyramiding) are two ways to get more invested. The power trend turns off when the 21-day moving average crosses below the 50-day moving average, and the index closes down for the day. There are a few other ways it can turn off but this one is the most common.

The performance of each stock you own overrides any Power Trend or market count indicators that apply to the overall market trend. Use your sell rules to exit stocks according to your investing strategies (and I hope you have sell rules!). But at Schaeffer’s we use strict trading rules to cut our losses short. And with targeted trade returns of up to 150% and 2-4 trade recommendations per month, it won’t take many winners to make this strategy pay off. For both individual stock investors and stock index/ETF investors, a Power Trend is the ideal time to be invested and/ or get aggressive if that suits your trading style. Outsized gains usually happen quickly and pullbacks in the indexes are usually shallow, with new highs following shortly after pullbacks.

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With this indicator, in addition to indexes, it will allow an ETF (more specifically, a “fund” as defined by TradingView) to be used as the source. The reason for the latter is that various ETFs such as ARKK, which are focused on “disruptive technology,” can be helpful to track trends for growth traders. The rules are complicated so I won’t explain them here, but they are there to help you stay invested effectively when the market trend starts to change.