Larry Connors will be managing money on a full-time basis beginning in The strategies and research are not only what he believes to be the best; they are also the ones that the most number of customers have the highest level of success with.
Larry is hopeful that in teaching these strategies for the final time, you will have the same success. To learn more about the Swing Trading Courses, to be taught for the final time on July 19 please click here. This strategy identifies oversold stocks and takes advantage of the tendency for prices to revert to the mean in the short term. Rules 1 and 2 are liquidity filters.
By using highly liquid stocks we minimize the trading costs and maximize the probability of having orders filled. Illiquid stocks can have large spreads between the bid and ask prices which makes them costly to trade.
There also might not be enough market depth to ensure an order is filled at the desired prices. Rule 3 ensures the stock is trending.
Rules 4, 5 and 6 are used to quantitatively define a downtrend. Rule 7 enters the trade and rule 8 defines the exit for the trade. Using TradingMarkets Live Screener we can find the information needed to complete an initial screen for buy candidates under this strategy. Although the Screener is a starting point to implement this strategy, the calculations required for rule 5 will need to be done separately. You would then need to enter orders for rule 7 and track open positions to identify when rule 8 is triggered.
The stocks set up as potential buys for Monday are listed in the table below. These stocks meet the setup rules rules number 1 through 6 above. This list uses a value of 2 for W in rule 4, a value of 25 for X in rule 5 and a value of 5 for Y in rule 6.
We have started detailing out Top 20 Strategies in a series of courses that will continue through September. To learn more about the Top 20 Strategies click here. At Connors Research, we are using it as an overlay to many of our best strategies to make them even better -- now you can, too.
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