Free Open Access: 5+ Consecutive Lower Lows

Each day, TradingMarkets publishes a new list of TradingMarkets Stock Indicators, which are are based upon our latest quantitative research. We will be giving readers free access to 1 list per day, free of charge, to help explain the methodologies and to coach new users; these lists highlight trading edges backed by our database of more than 7-million historical simulated trades.

Today's free focus list comes from our 5+ Consecutive Lower Lows list, which will be available until around 1 PM tomorrow afternoon. These are stocks that have made a lower low for five or more consecutive days and are trading above their 200-day moving average. Our research shows that stocks trading above their 200-day moving average that make lower lows for five or more days have shown positive returns, on average, 1-day, 2-days and 1-week later. Historically, these stocks have provided traders with a significant edge. To learn more about our research into stocks that make five or more consecutive lower lows, and how to use this information, click here.

Let's take a closer look a chart from the list above. Keep in mind that this is only one example from the indicator list, and that we are not recommending a trade in this particular stock. Traders should always create individual focus lists and radar screens based on their own information and trading strategies, instead of blindly following other people's recommendations.

Colgate-Palmolive (CL | Quote | Chart | News | PowerRating)

CL is a strong stock, confirmed by the fact that price is trading above the stock's 200-day moving average. The TradingMarkets mantra is to "buy weakness and sell strength," and that is exactly the mentality that this setup embodies. Our historical research of literally millions of trades confirms that the edge exists in strong stocks that are showing short-term weakness. In CL's case, we see a stock that has had a few bad days in a row, despite being backed by a strong track record over the last few months.

You can find the full list here. Also, Check out our latest quantified research articles here. If you don't already have a TradingMarkets subscription, click here for a free 7-day trial. Check back daily for 7 Trading Ideas for Today, and develop your own watchlist of stocks with historically-backed edges.

John Lee
Associate Editor
johnl@tradingmarkets.com

Reminder: We are in no way recommending the purchase or short sale of these stocks. This article is intended for education purposes only. Trading should be based on your own understanding of market conditions, price patterns and risk; our information is designed to contribute to your understanding.