Free Open Access: 5+ Consecutive Lower Lows

TradingMarkets subscribers have access to 16 quantitative stock indicators and another 17 quantitative market bias indicators. These indicators are derived from our proprietary database that includes millions of trades, and designed to give you a short-term trading edge.

There are 8 bullish and 8 bearish stock indicators, providing trading ideas for both rising and falling markets. When used in conjunction with the market bias indicators, traders can potentially achieve a substantial edge.

Each day, we provide free open access to one of these proprietary stock indicators. If you would like to access all 16 stock indicators, 17 market bias indicators, along with many other tools, click here for a free focus list comes from our 5+ Consecutive Lower Lows list, which will be available until around 1 PM Monday 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.

Diamonds Trust (DIA | Quote | Chart | News | PowerRating)

The Diamond Index (DIA), which follows the Dow Jones Industrials, made 5 consecutive new lows in a row. A quick glance at the DIA chart confirms that the index and its proxy are trading well above the 200-day moving average. DIA has gained more over the last 200 days than it has lost, and this creates a technically-sound winner. The TradingMarkets mantra is to "buy weakness, and sell strength," and that's what we would be looking to do here. When you see a strong, uptrending stock pull back to extended, weak levels, historically, those stocks have gained, on average, over the next 5 trading days.

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.