Trade Setups

Last modified 10:12, 5 Nov 2012

Trade Setups Scan Types

Trade Setups type pre-computed scans use a number of different indicators, Hi-Lites, signals and fundamental ratios and data to identify potential trading formations.

For each date and market, a scan is run on all symbols on the HUBB server's data base.

Only symbols that meet the criteria will be included in the scan results list. At startup, or when requested, the HUBB sever will deliver list of these symbols to each user.

The 17 Trade Setup scan types are arranged into six groups:

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Click on the plus sign [+] to expand each group to view its scan types.

For each row in the scan type table, the List Name of the Scan Type together with the number of results (Count) for the day that the scan took place on (Date).

By default the date of the scan will be the current date. A previous date can be selected using the Date Selector in the Pre-computed Scan work page's Function Bar. First unselect Use Current Data, then type in or select the required date in the Search Date text box. For more information, go to the Change Date help topic.

The Scan Results displayed on the right can be filtered using the Intersection tool. To include a scan type in an intersection, select its check-box [x]. This will limit the displayed results to those which are also included for any other scan type that is also selected. For more information, go to the Filter with Intersections help topic.

Click on the minus sign [–] to collapse each group to make the selection area less cluttered.

Elliott Wave

The four Trade Setups pre-computed scans types based on Elliott Wave principles are included in both the Pre-computed Scans work page, as well as the Integrated Investor Start Page.

For all four types, the first time the pattern is detected, it is included in the results list with a Triggered icon icon_prcompscntrigger.gif in front of its details. If the symbol continues to meet the criteria on subsequent days, its Wave 4 is considered to be confirmed and the Watch List icon icon_prcompscnwatch.gif will be displayed in front of its details in the results list.

Buy / Sell

These two Elliott Wave Trade Setup scan types are identical except that the Buy type is set to identify opportunities in long (prices trending higher) markets, and the Sell type is set for short (falling prices) markets.

Elliott Wave 4

The two Buy or Sell Elliott Wave 4 scan types identify trade formations in which the fourth Elliott wave is forming but the fifth wave has not yet been identified.

A symbol will be included in the results if it meets the special Elliott Wave pre-configured scan criteria. The criteria includes, among other items, that the Wave 4 retracement be within specific percentages of the previous Wave 3, that Oscillator level pulls back to zero, and that the stock price break above (for a Buy pattern, below for a Sell) the Elliott Breakout Trigger (EBOT). The oscillator is the most important indicator since it uncovers trading activity and confirms the validity of the waves.

The theory and application of Elliott Wave analysis is complex. It is recommended that traders undertake a course of study before using the results to trade.

Elliott Wave 5

The two Buy or Sell Elliott Wave 5 scan types identify trade formations in which the fourth Elliott wave has definitely formed, and price projections based on the fifth wave can be identified.

In addition to there being a confirmed Wave 4, the Wave 5 pre-configured scan also requires an extension/retracement within a specific percentage range of the previous Wave 3, and there to be a noticeable divergence in the Oscillator levels, specifically the strength of the Wave 5 oscillator should be considerably weaker than the Wave 3 oscillator level. Divergence between price action and oscillator movement signals the end of a trend.

As with the Elliott Wave 4 scan, the Elliott Wave 5 pre-configured scan requires that the stock price break above (or below for a bearish pattern) the Elliott Breakout Trigger (EBOT).

Results Filter

For each of the four types of Elliott Wave scans, the results are filtered so that a large number of inactive or low value symbols are not included in the scan results list.ay must exceed a certain level. For example, the volume moving average (30 trading periods) for United States stocks must exceed 100,000.

Closing Price

For the symbol to be included as a scan result its closing price must exceed a certain level set for each market. For example, the closing price for United States stocks must be at least $10.00.

ABCsitmicon34.gif

When the SITM module is installed, this group will appear.

The four Trade Setups pre-computed scans types based on ABC Pressure Point principles are included in both the Pre-computed Scans work page, as well as the Entry Point work page.

Long / Short

These two ABC Pressure Points Trade Setup scan types are identical except that the Buy type is set to identify opportunities in long (prices trending higher) markets, and the Sell type is set for short (falling prices) markets.

25 Percent Setting

This setting refers to the maximum amount of the A-B range that can be traveled from point C before the trade will be rejected. Whether the percentage amount of the A-B range is added or subtracted from point C depends on whether the analysis is Long or Short, see previous item.

The maximum amount of 25% of the A-B range is a more restrictive setting, hence the trades identified are more conservative than those identified by the 33% setting.

33 Percent Setting

This setting is a more expansive setting than the 25% setting previously described, but still is within ABC trading rules for certain trading situations.

For these scans, 33 percent is the maximum amount of the A-B range that can be traveled from point C before the trade will be rejected. Again, whether the percentage amount of the A-B range is added or subtracted from point C depends on whether the analysis is Long or Short, see previous item.

optioneticslogo25.gifOptionetics System Center

When the Optionetics module is installed, this group will appear.

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Ten Optionetics System Center scan types have been specially developed to assist options traders.

For more information, go to the Optionetics System Center scan types help topic.

Price/Patterns

The 25 Percent Gainers / Losers scan compares the open or close of the current day with the close or open of the previous day.

The equations are as follows:

25 Percent Gainers

Open of today >= Close of yesterday x 1.25

25 Percent Losers

Yesterday's Close  >= Open of today x 1.25

Results Filter

The results are sometimes filtered so that a large number of inactive or low value symbols are not included in the results.

This pre-computed scan has two filters that are set at different levels for different markets:

Volume

For the symbol to be included as a scan result its volume for the current day must exceed a certain level. For example, volume for symbols on the Australian market must exceed 100,000.

Opening Price

For the symbol to be included as a scan result its opening price must exceed a certain level set for each market. For example, the opening price for United States stocks must be at least $10.00.

Integrated Investor

There are five Integrated Investor type scans.

These scans use various Fundamental ratios and data as well as technical analysis in their search criteria.

Farmer

The Farmer ("reaping the yield") scan identifies stocks whose Dividend Yield exceeds 3 and Dividend Payout per Share is greater than 80.

Other criteria used by the scan includes Return on Equity, Debt to Equity, Current Ratio and a Market Capitalization greater than $100 million.

Finally the scan results are restricted to those meeting certain DMI, Chaikin Money Flow and Implied Volatility technical analyses.

The top 250 results are listed in alphabetical order.

Gardener

The Gardener ("digging for value") scan focuses on Price Per Earnings ratios (PE) and in particular their growth over time (PEG). Earnings increasing over 3 years is an important criteria, while Debt to Equity and Return on Equity are also considered.

Finally the scan results are required to trigger Elliott Wave 5 parameters and changes to Volume and the Put/Call ratio of the stock's options.

The top 250 results are listed in alphabetical order.

Archer

The Archer ("strike after a draw back") seeks stocks with excellent fundamentals but which are under-priced and whose technical criteria indicates a reversal in fortune.

The fundamental criteria includes Price/Sales per Share ratio (PSR), Earnings Growth per Share, Interest Coverage, Dividend Payout ratio and Return on Capital.

Technical criteria used to ascertain under valuation and reversal of trend include the Elliott Wave 4 and a complex Bollinger Band analysis.

The top 250 results are listed in alphabetical order.

Bullish

The Bullish scan type utilizes technical analysis of both the underlying security and its options to scan for results.

The Put / Call ratio and average volume over 21 days of the options are calculated.

For the underlying security, Bollinger Band crosses and an Relative Strength Index (RSI) 'oversold' signal are required to meet the scan's criteria.

The top 250 results are listed in alphabetical order.

Bearish

The Bearish is similar to the Bullish in that it looks to both the options and the underlying share.

Its criteria is set to the opposite of the Bullish. In the Bearish scan, for example, the Put / Call ratio criteria is 'less than' (<) 0.3 whereas the setting is 'greater than' (>)1.5 for the Bullish criteria. Likewise the RSI criteria requires an 'overbought' signal.

The top 250 results are listed in alphabetical order.

Volume

The Volume Spike pre-computed scan applies a two-step analysis.

First the price movement is measured to determine its direction, then the volume for the day is compared with the symbol's volume's moving average to determine if the change in volume is significant.

Volume Spike - Move Up

The price move must be at lest +10%, if the first criteria is satisfied, then the volume analysis is applied:

Price Analysis

Open of today >= Close of yesterday X 1.1

Volume Analysis

Volume >= Volume MA of today X 2

Settings/Filters

The Volume Moving Average Period setting is 200, i.e. the moving average is calculated as the average volume for the last 200 trading periods.

A volume filter is also set for each symbol. This varies depending on the market.

For example, the volume of daily trades for symbols on the Australian market must be at least 100,000 trades in order to be included in the results list.

Volume Spike - Move Down

The criteria and settings for the Volume Spike - Move Down is the same as the Move Up except that the Price Analysis detects a falling price of -10%.

Price Analysis

Open of today <= Close of yesterday X 0.9

Volume Analysis

Volume >= Volume MA of today X 2

Settings/Filters

These Settings and Filters are the same as for the Move Up, see above.

High Volume

The High Volume scan conducts a percentile analysis of the volume over the past 12 months.

It returns results whose percentile is between the mean (50) and 100 percentile.

The top 250 results will be displayed, along with their Score, in descending order of their Score.

Low Volume

The Low Volume scan performs its calculation exactly opposite to the High Volume scan. It conducts a percentile analysis of the volume over the past 12 months but returns results whose percentile is between the first (1) percentile and the mean (50).

The top 250 results will be displayed, along with their Score, in ascending order of their Score.

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