The Current Lists in StockAlerts
- A list of stocks that have just gapped up or down.
- A list of stocks that have declined to or moved generally sideways until they are in the proximity of their rapidly rising 50-day moving average. The 50-day average often gives support to a declining stock. If that average has been rising at a good rate of ascent it is even more likely to offer support. The trader will watch the stock’s behavior as it nears or touches the average. A trigger event may be said to occur if the stock shows a “bounce” with an increase in volume.
- A list of stocks that have reached a relative high (relative to the last 6 months), sold off in a stair-step pattern (each high for the day lower than the high of the previous day for 3 to 5 days), then have a high that is higher than the previous day’s high. This alert is of interest to short-term traders.
- A list of stocks for which the Bollinger Bands have had a relatively narrow separation (showing a relatively low level of volatility) and in which the stocks then penetrate either the upper or lower band (significant moves often follow such penetrations after a period of low volatility).
- A list of stocks that have just had a cross of the 5-day moving average and the 20-day moving average (a concept popularized by Richard Donchian).
- A list of stocks that have had a crossover similar to the crossovers on the “Alerts” page. However, the moving averages used are the 5-, 10-, and 20-day moving averages rather than the 4-, 9-, and 18-day moving averages.
Most of these alert systems include volume surge parameters. Traders and investors are often more comfortable with, or more successfully implement, some types of alerts than others. By providing 6 alert systems in the subscription, we increase the odds that a subscriber will find a few that work particularly well for him.
Alerts vary in their effectiveness over time. Alert systems A, B, and C may work incredibly well for a year and then systems B, D, and F might work the best. After a time, systems C, A, and E may begin to work better. Then systems A, D, and B might become the most effective, and so on. By using a variety of alert systems, we increase our flexibility and ability to adapt to changing market environments. We give the one on the Alerts page as a kind of freebie as a way of thanking people for visiting our site. However, while it can be extremely useful, we do not believe it is the most powerful alert system. How clever would we be to give away our best and use the least effective to generate our income? We do believe that it can be a very effective tool as long as a person uses it as merely one element of a more comprehensive filtering process (the same is true of all alert systems). A stock can have a crossover signal but the context of that crossover can still be ugly from a tactical perspective. If there is strong overhead resistance nearby, the crossover may lure you into a whipsaw in which you end up having to sell shortly after taking the position (perhaps at a loss). Out of a list of 50 stocks that have had a crossover signal, there may be only a handful with behavior pattern contexts (chart patterns and/or valuations) that are attractive enough to be of interest. If the context of a stock (the overall pattern) is good, then the crossover can be a great signal that it is time to act.
To get a better idea of what these alerts look like, refer to the charts on the “Stock Alerts” page.
To return to the R.C. Allen Alerts page (where you probably found the link that brought you here) click on Alerts.
To go to the “Stock Alerts” page where there is a general discussion of alerts (including some chart demonstrations) and a description of the StockAlerts subscription, click on Stock Alerts.