I am excited to provide a free to use indicator called the MONTHLY STOCK MOVER.  This is made possible via a QCharts plug-in, one of two trading platforms I utilize. 

This tool provides a color coded visual representation of a stock’s historical monthly price action based on three different time periods within the month: the FIRST five trading days of the month, the MIDDLE trading days of the month (which can vary), and the LAST 5 trading days of the month.  The historical numbers cover the year 2000 to the present. 

I encourage you to take a look under the heading WEAPONS on my home page and give it a try. 

STEP ONE

Once on the WEAPONS page you will be asked to enter a stock/ETF symbol.  The following STATS and CELLS box will appear as your chart is loading. 

STEP TWO

Once you enter a stock symbol (or an ETF symbol) in the box provided the following screen will appear.  You can sort by year or month. 

These numbers are based on the monthly period represented (FIRST, MIDDLE, LAST) and are as follows:

STATS (GRAY SIDEBAR AREA) HIGHEST HIGH, LOWEST LOW, AVERAGE DAILY MOVEMENT, PERCENT CHANGE, DOLLAR CHANGE

CELLS (RED, GREEN, YELLOW) DATE, DAY OF THE WEEK, CLOSING PRICE, DAYS TILL EARNINGS, PERCENT CHANGE, DOLLAR CHANGE

The RED shaded area reveals a down period, GREEN up, and YELLOW flat. Within these colors are the DAILY +/- end of day data. 

Here are Goldman Sachs (GS)  historical stats for the FIRST FIVE TRADING DAYS of NOVEMBER (the current week will not populate until the first five days’ stats are available):

POSSIBLE PATTERNS

What I really like about this tool is it’s ability to provide a visual representation of a stock’s price movement during different periods of the month, helping the discerning trader capitalize on possible recurring monthly patterns of a stock, especially when looking at possible quarter end, month end, or first of month changes in price.  Seasonal patterns may also emerge.

EARNINGS COUNTDOWN

Another great option is the EARNINGS COUNTDOWN.  Notice the number countdown into GS earnings on October 15.  The counter starts 20 days out from earnings and continues 30 days post earnings.  This is helpful in determining the historical price action of a stock as it’s volatility rises heading into earnings. This can then help the trader determine whether or not it is a good time to buy the expectation and sell the news (since we do not trade through earnings).

A HIGH PROBABILITY COMBINATION

My purpose is to keep things simple and trade when the CROSSHAIR gives me a signal to buy.  This tool (let’s call it a weapon) enhances my high probability technically driven CROSSHAIR by providing historical price data along with it.   When the historical price data and the CROSSHAIR agree, the probability of success is greatly enhanced.

Post from: The CrossHairs Trader

MONTHLY STOCK MOVER INDICATOR

Related posts:

1. THE MONTHLY STOCK MOVER INDICATOR AS CONFIRMATION
2. MAKING SENSE OF THE STOCK MARKET
3. STOCK MARKET FUTURES IN THE CROSSHAIRS

Last 5 posts by David Blair

• CAN YOU CALCULATE YOUR WILLINGNESS TO TRADE? - November 23rd, 2009
• THE THINKING TRADER 11/20/2009 - November 19th, 2009
• OVERTRADING: YOU MIGHT BE A STOCKAHOLIC IF… - November 17th, 2009
• THE THINKING TRADER 11/13/2009 - November 13th, 2009
• VETERANS DAY 2009 IN THE CROSSHAIRS - November 11th, 2009