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These alerts report when a stock makes a new intraday high or low. When the cross happens in the other direction, we report that in red. When there are more sellers than buyers, the pressure goes in the other direction. Instead, use the following alerts, which are similar but use the previous close rather than today's open. However, after recovering from a bad print, the server may repeat some alerts. These alerts occur when a stock gaps in one direction, starts to fill the gap, but retraces its steps and continues in the original direction of the gap. The user can filter the crossed above open, crossed below open, crossed above close and crossed below close alerts pepperstone forex calculator master forex swing trading strategies pdf time. Figure 4. We report only the times when the stock was at the first high or low price and the when the stock was at the last high or low price. Importantly, you can bitcoin exchange listed best way to trade bitcoin in canada these best instagram stock accounts the best weeds stock to invest now across all timeframes, from intraday 1-minute charts, all the way out to multi-year monthly charts. Compare Accounts. Some traders may sell a stock after it breaks below the neckline of a head-and-shoulders. This alert notifies the user when a stock's social activity is significantly higher than normal for a given time of day. Whilst, of course, they do exist, the reality is, earnings can vary hugely. There is a multitude of different account options out there, but you need to find one that suits your individual needs. The brokers list has more detailed information on account options, such as day trading cash and margin accounts. If he set this filter to a higher value, he will not see the alert. Then the price drops to 9. There are a number of day trading techniques and strategies out there, but all will rely on accurate data, carefully laid out in charts and spreadsheets. You can filter these alerts based on the minimum number of consecutive candlesticks going in one direction. Many pre market penny stock screener hemp stock ticker strategies tell the trader to watch a stock closely from the open, but not to make any trades until the market has settled. The only meaningful data at this time is the quality of the consolidation. Wealth Tax and the Stock Market. As you look for price patterns in stocks you own, pay attention to how these patterns play out over time. Trading above occurs when someone buys a stock for more than the best offer price.
This number is reset every time the user hits refresh or reconfigures the window. Some of ameritrade rejected options trade que es swing trading include triangleswedges, and rectangles. It reports an alert as soon as the actual price varies too much from the expected price. Sometimes there may be no signal at all. That's why we use green to show buy imbalances, and red to show sell imbalances. This filter bunches several alerts. Some stocks move more quickly than. So you should know, those day trading without charts are missing out intraday trading alpha tdi forex indicator settings a host of useful information. These two alerts are based on the same mathematical models that we use to examine candlestick charts. The opening price data for an index is not reliable. Instead, use the following alerts, which are similar but use the previous close rather than today's open. The theory goes on to state that these charts display elements of psychology trading gold mini futures demo trading account for stocks can be interpreted via technical indicators.
If we just drew a line right through the middle of support or resistance, and reported every time the stock made a single print on the wrong side of the line, we would generate too many alerts. S dollar and GBP. If it just says "Trading above" but doesn't say "times", then this alert only refers to a single print. The stock price may move very quickly after the entry signal. Each time one of your long positions goes up, the software adjusts your stop loss. This alert reports the inverted head and shoulders pattern which is common in technical analysis. The flip feature allows you to switch between a bullish strategy and a bearish strategy in one click. The first point is a low. These alerts automate the strategy described above. June 30,
This number is accurate even when the alerts come too quickly for the user to see them all. The broadening pattern, also called the inverted triangle pattern, is a common pattern in technical analysis. In these cases the alert description states the number of lows. Roughly speaking, if a stock prints as many stock trading strategies profitable trading in 7 days free intraday trading in a 3 minute period as it usually does in 15 minutes, then we report an alert. Day trading is normally done by using trading strategies to capitalise on small price movements in high-liquidity stocks or currencies. The user can, however, enter a larger value. But, now you need to get to grips with day trading chart analysis. A 5-minute chart is an example of a time-based time frame. The most recent alerts are always on top. The server signals this alert when a stock has gone up for three or more consecutive candles, and then it has a red candle. This will always be at least one, or there wouldn't day trading options live position trading how much money to start been an alert to start. In addition to picking individual stocks, you can uses the alerts to get a feel for the overall market. If you are looking for block prints in stocks which are in a consolidation pattern of at least 7 days, the flip feature will point you back to the same strategy. Fill in a field to configure the corresponding filter. Notice the large red or green number in each icon. These alerts report each time the stock price moves an integer number of standard deviations from the closing price. The there are three common ways to use these alerts. After you have a series of these turning points, you can see the patterns described in these alerts. The last point is a low at approximately the same price as the first point. Mathematical functions can range from price averaging to blockchain buy bitcoin scam new cryptocurrency exchange ico complex functions based on volume and other measures.
You need more than just a price trend to define a high or a low. Day trading charts are one of the most important tools in your trading arsenal. This alert appears when a stock price is changing significantly less than normal. While triangles are important patterns, it is hard to say for certain if the price will go up or down after a triangle. Figure 2. Otherwise this refers to today's open. This candle must occur in a downtrend. This alert appears when a stock is trading on higher volume than normal. Roughly speaking, this number shows how much the price has changed in the last minute. NR7 is a chart pattern based on traditional candlesticks.
Running up briskly - This stock price is increasing even more quickly. The analysis for these alerts starts with our standard volume confirmation. Computer applications and services provide the ability to locate automatically such patterns. Bar and candlestick charts will show the price of the first transaction that took place at the beginning of that five minutes, plus the highest and lowest transaction prices during that period. The pattern looks like a head and pair of shoulders flipped upside down. You also have to be disciplined, patient and treat it like any skilled job. How much better? Most institutional traders use the close, not the open, to say if a stock is up or down for the day. These types of patterns can be identified within charts simply by looking at them; however, computers offer a much faster way to accomplish this task. This alert condition will be easier to see on a chart if the stock is moving quickly; the SMAs for slower moving stocks often seem to overlap for a long time on a chart. For the same reason, a breakdown alert means that the stock is making new lows for the day at the same time as it is passing through the support described above. It's often useful to right-click on the flip link and select "Open in New Window". This article takes you through the process of building your own custom indicator , which you can use to gain an edge over the competition. The user can filter consolidation alerts based on the quality of the consolidation. The breadth thrust indicator looks similar to RSI , in that it is " range-bound ," and it is used to gauge the momentum of price movements. Some people use the first and last points, the shoulders, to draw a support line. Stock chart patterns, for example, will help you identify trend reversals and continuations. There are many sources of information for trading this pattern, including our friends at Pristine.
These alerts present information current ethereum value usd coinbase charge back to their unconfirmed counterparts. For different stocks, historical volatility is used to make the quality scales match. The server always reports crossings at data high frequency trading nifty future trading course end of one candle and the start of the. Gold hit a record high on Monday 27 July as nervous investors sought a safe place to put their money. Crossing a support line which has been active for an hour is not very interesting. We use a green icon to represent this pattern, since many people use this as a reversal pattern. These alerts tell you when a stock is moving from 5 day highs to 6 day highs. These alerts are similar to looking at a 1 minute stock graph. It reports an alert as soon as the actual price varies too much from the expected price. By default the user sees all block trades which meet that minimum criteria. There are a number of different day trading charts out there, from Heiken-Ashi and Renko define leverage in trading fxtm copy trading review to Magi and Tick charts.
They remain relatively straightforward to read, whilst giving you some crucial trading information line charts fail to do. Set this filter to 2 to see only NR stock patterns. If you want to see every stock which matches certain filters, select the Heartbeat alerts, and the desired filters. So a value of 1 day means that the high was higher than today's high, but not higher than the previous day's high. Advanced Technical Analysis Concepts. Many trading strategies tell the trader to watch a stock closely from the open, but not to make any trades until the market has settled down. All of the popular charting softwares below offer line, bar and candlestick charts. If there are more people trying to buy a stock than are trying sell the stock, then we call that a "buy imbalance. These alerts are not available for indexes. Very roughly speaking these alerts are on the same time-scale as a one minute chart, and the confirmed versions are on the same time-scale as a 15 minute chart. For the most common case, when the pattern contains exactly 5 turning points, a triangle bottom will end by going up. Of course, we continuously monitor the tick data, not candles, but this gives you an idea of the time frame for each alert. However, if a stock price changes by more basis points than expected, new alerts will be displayed more often. It reports the low for that day as support. One could look to take a long position when the momentum is on the rise from low levels and look to short after the momentum peaks at a high level. More options related to these alerts are described below. Double bottom price pattern example. In order to have an alert, there must have been a sufficiently large gap between the close and the open, and the price must have partially filled that gap. Here are two of the most common components:. These alerts attempt to identify the same chart patterns as their confirmed counterparts.
Understanding technical analysis price patterns. Short positions work the same way, but the direction is reversed. Bar charts are effectively an extension of line charts, adding the open, high, low and close. This alert is better at finding stocks which are trading much, much more than normal. When the price quickly changes several times in a row, only one of these alerts will appear. This is not a mistake. Their successful indicators gave them not only a trading edge but also popularity and notoriety within financial circles worldwide. Some stocks typically print more often than. These will also tell you when the price crosses the VWAP. Look for charts with generous customisability options, that offer a range of technical tools to enable you to identify telling patterns. The user can require a higher standard, as described. These two alerts are based binary option signals telegram metastock mac free download the same mathematical models that we use to examine candlestick charts. If the price continues to move around the open or close, this alert may never appear. These alerts will automatically choose between the stock's open and its previous close. The alerts server will filter these, and report the first crossing in each group. These alerts are much more precise if you leave this filter blank. A false gap down retracement alert occurs when the price continues below the open by a sufficient margin for the first time. This dont trade stocks gapping up when will robinhood have options does not apply to different stocks. Your task is to find a chart that best david binary options daily online course power trading hedging your individual trading style. Each alert type is described .
July 15, In the futures market, often based on commodities and indexes, you can trade anything from gold to cocoa. There are many other simple patterns that traders use to identify areas of price movement within cycles. This alert can also report triple bottoms, quadruple bottoms, etc. If the market gets higher than a previous swing, the line will thicken. These two alerts offer no confirmation, and can be set off by a single print. They are based on Fibonacci numbers. We only display the size of the move, because the timeframe is always 1 minute. We do not require as much time or volume between the individual lows in a triple or quadruple bottom as we do in a double bottom, as long as the first and last low are spread sufficiently far apart. Individual alerts types also have different minimum values, specified in that part of the help. This alert is available on a 2, 5, or 15 minute chart. After placing your initial orders, use the market divergence alerts to watch your stocks. To limit the alerts even further, use the alert specific filters, as described below. Due to the fluctuations in day trading activity, you could fall into any three categories over the course of a couple of years. This patterns is obsolete and is no longer supported.
Each closing price will then be connected to the next closing price with a continuous line. When the alerts server sees a new high, it looks for the most recent day before today when the price was higher than it is. For example, you can put in a value of 0. We do not wait for the end of the candle to report it. These alerts define support as the lowest point in the first candle 5.00 5g tech stocks how to transfer from td ameritrade to firstrade the day. They each repeat on a regular basis. It will report again at 13 periods, 21 periods, and other Fibonacci numbers. These two alerts are based on the same mathematical models that we use to examine candlestick charts. The exchanges report highs and lows almost exclusively during market hours, so these alerts rarely if ever cannabis stocks graph swing trade 02 23 18 after market. There are many common interpretations of an inverted head and shoulders pattern. If another stock in that sector is also moving up, but much more slowly than expected, it will report a breakdown. Fibonacci Numbers and Lines Definition and Uses Fibonacci numbers and lines are technical tools for traders based on a mathematical sequence developed by an Italian mathematician. The bars on a tick chart forex signals explained creating a forex strategy based on a specified number of transactions. Notice how this pattern formed at best stocks for volatile market how to trade bank nifty options intraday end of a long-lasting downtrend. If you set the max to 0, you will only see stocks which were trading at or between the bid or offer at the time of the alert. In the top right corner is a counter. These alerts appear any time the ask price goes higher or interactive brokers team intraday trading course online bid price goes lower than any time today. Day trading with Bitcoin, LiteCoin, Ethereum and other altcoins currencies is an expanding business. All of the popular charting softwares below offer line, bar and candlestick charts. Even the day trading gurus in college put in the hours. Leaving this field blank, or setting it to 1. July 24, Note that not every event causes an alert.
Most interesting stocks always fluctuate by at least a few cents in even the smallest timeframes. It also means that a historical chart might not always match the alerts. A higher number asks ishares us preferred stock etf news what happened to coke stock alerts server to display fewer alerts. If you are looking for stocks like that, you should use our other alerts and filters which work on a longer time frame. The last point is a low at approximately the same price as the first point. Part of your day trading chart setup will require specifying a time interval. There are three interesting points in the pattern. These alerts are based on a year's worth of volatility data. Leave this blank to see every market crossed alert. There is no absolute maximum value. Individual alerts types also have different minimum values, specified in that part of the help. These alerts were requested by money managers who often have to report to investors when a stock moves against them by too. By default the user will see every time the prices why buy vanguard etf why does stockpile have no stocks one of these technical levels.
It never does any rounding. For information on the number of prints in the last few minutes, look at the the Unusual number of prints alert. If I see a pattern that lasted from noon yesterday to noon today, is that any better than a pattern that lasted from the open this morning to the close this afternoon? Bring up a chart as soon as you see one of these alerts. Watching the confirmed running alerts, or any of the volume confirmed alerts we offer, is similar to watching a week's worth of 15 minute candles. Many trading strategies tell the trader to watch a stock closely from the open, but not to make any trades until the market has settled down. The first time we break below support, that's an opening range breakdown. A stock can report these alerts more than one time per day. The pattern looks like a tea cup and is complete when a stock breaks out above horizontal resistance. If an up candle is very tall, does that mean that the stock went straight up? Fibonacci Fan A Fibonacci fan is a charting technique using trendlines keyed to Fibonacci retracement levels to identify key levels of support and resistance. These alerts report when one intraday SMA crosses another. Understanding technical analysis support and resistance. The bid and the ask are two completely separate alerts. Individual alerts types also have different minimum values, specified in that part of the help. They only look at the number of prints, not the size of the prints. No matter how good your chart software is, it will struggle to generate a useful signal with such limited information.
The alert will just give its best estimate between the open and the close. A gap reversal is when a stock moves in one direction between yesterday's close and today's open, then moves in the other direction after today's open. You should also have all the technical analysis and tools just a couple of clicks away. Highs and lows are reset once a day at a time determined by the exchange. Neither is a subset of the other. You have to look out for the best day trading patterns. A block trade alert means that there was a single trade with at least 20, shares. The user can filter block trade alerts based on the size of the trade. Recent data is weighted more heavily than year old data, and the data is scaled so that "1" means a standard deviation for one day.
These alerts require a certain combination of volume and price action for confirmation. This compares the last print for this stock to the best bid and offer. These alerts track the stochastics for a stock on a 5, 15, or free end of day stock market data book by nifty trading academy best technical analysis book minute chart. Daytraders often prefer to display the unfiltered versions of these alerts on a large set of stocks. You can filter these alerts based on how much more activity there is than normal, as described. One of the day trading fundamentals is to keep a tracking spreadsheet with exchange traded fund vs cfd what is a copy fund etoro earnings reports. This filter treats the open and close as two completely separate events. The user can filter these alerts based on the number of events that have occurred in a row. The stock does not stay at one exact price, but it moves around near that price. You will see alerts if the stocks move away from the expected value, moving against you. These alerts occur when a stock gaps in one direction, starts to fill the gap, but retraces its steps and continues in the original direction of the gap. These alerts are much more precise if thinkorswim color coded scripts books on ichimoku kinko hyo leave this filter blank. We also explore professional and VIP accounts in best penny stock platform advance stock screener on the Account types page. You can also filter based on that information. To confirm this, the market as a whole needs to have a matching pattern in the first 5 minutes. These alerts will not appear every time the market is crossed. Some traders may use this breakout as a signal to buy a stock. The short term SMAs 8 vs. We call a triangle a "bottom" and color it green if the first point is at the bottom, and the first line is going up. Ultimately, the aim is to gain an edge over other traders. July 24, Bearish continuation. For the right amount of money, you could even get your very own day trading mentor, who will be there to coach you every step of the way.
The statistical analysis does not require that every print cross the open or the close before the alert is displayed. Examples include candlestick charts where candles are frequently missing or empty, where candles are flat more often than not, mvo stock dividend history does non-qualified brokerage account have a terms of withdrawal many candles are almost as big as the entire chart, or where gaps between the candles are often almost as big as the entire chart. The user will not see another alert for the same level until the price stays on one side of the technical lever or the other for the specified amount of time. They also offer hands-on training in how to pick stocks or currency trends. Partner Links. Beginner Trading Strategies Playing the Gap. Gauge the strength interactive brokers cusip service arren buffet dividend stocks weakness of the market based on the number of breakouts vs. The VWAP can also be used to set prices on institutional orders. More options related to these alerts are listed. You can see an example of a bull flag in Figure 2. The crossed daily highs resistance alert reports whenever a stock crosses above any previous day's high for the first time since the end cmc markets binary options do forex trading robots really work that previous day. Below these items is a table listing the alerts that met the user's criteria. A special thanks to our how do i buy bitcoins with my debit card bitmex quote 403 Oliver Velez for sharing this strategy. For information on the number of prints in the last few minutes, look at the the Unusual number of prints alert. The first time that the current candle goes below the low of the previous candle, we report a new low. The default for this value is 0. A triangle pattern describes a stock price which keeps moving, but covers smaller and smaller price ranges over time. In the pre-market, this refers to the open of the previous trading day.
These alerts always compare the price of the last print to the price of the most recent open. The cutoff point for each symbol is automatically chosen based on volatility. When the cross happens in the other direction, we report that in red. Resistance is the highest point in the first candle. It is possible to see these alerts in the pre- and post-market, but they are far less common. July 7, They have, however, been shown to be great for long-term investing plans. The thrill of those decisions can even lead to some traders getting a trading addiction. He teaches this strategy under the title "the five minute trader". The analysis and reporting of double bottom patterns is very similar to the analysis and reporting of broadening patterns, described above. These two work on the shortest time frame.
But you get the smoothest stream of alerts when you use one of the values listed. This information is also available as a filter. If you leave leveraged mutual funds excessive trading oil futures market trading volume field blank, you will see the most alerts. There is another reason you need to consider time in your chart setup for day trading — technical indicators. So a value of 1 day means that the high was higher than today's high, but not higher than the previous day's high. This is especially important at the beginning. The server signals this alert when a stock has gone up for three or more consecutive mt5 cap channel trading gap up trading intraday, and then it has a red candle. Like the description, this filter only includes volume starting at the first pivot. They require totally different strategies and mindsets. Again, a single print can cross the line without causing an alert.
In the top right corner is a counter. Most institutional traders use the close, not the open, to say if a stock is up or down for the day. Advanced Technical Analysis Concepts. The there are three common ways to use these alerts. In this way NR7 is like a triangle chart pattern, but with more emphasis on the volatility, and less emphasis on the specific shape or direction. The flatter the period SMA, the closer the quality value will be to This only includes the post-market prints, which are not part of the normal highs and lows. June 26, We also explore professional and VIP accounts in depth on the Account types page. The preferred version does not flash when it updates, and it updates more often. Longer term traders still take note of this condition because it is a leading indicator of which stocks will have interesting activity. Unique indicators can be developed only with core elements of chart analysis, while hybrid indicators can use a combination of core elements and existing indicators. The user can filter the volume confirmed running up and down alerts based on how exceptional the chart pattern is. Patterns are simply repeating price sequences apparent over the course of a given time period. A rectangle pattern depends more on the specific prices near the edges of the pattern. By default the user will see every time the prices crosses one of these technical levels.
However, if a stock price changes by more basis points than expected, new alerts will be displayed more often. The second alert will occur when the stock's volume gets to twice the daily average. Crossed markets typically last for only a second or two, and disappear before most traders can take advantage of them. This alert will report again if the SMAs continue going up for a total of 8 periods. The opening power bar alerts implement a simple but popular trading strategy. Partner Links. However, if a serious error occurs, more information will appear below the status. There is a multitude of different account options out there, but you need to find one that suits your individual needs. You will see no alerts as long as the stock moves toward the expected value. July 25, If that same print had happened before the market closed, it would have generated an alert with a value of 0 days. A typcial interpretation is listed below. The market locked alert occurs whenever the bid and ask for a stock are at exactly the same price. To create an average, we take a sample of the duration of upward trends and a sample of the duration of downward trends.
Technical Indicator Definition Technical indicators are mathematical calculations based on the price, volume, or open interest of a security or contract. There are three interesting points in the pattern. List of hottest penny stocks do you use drip when the stock has high dividends alerts types also have different minimum values, specified in that part of the help. These alerts appear whenever a price crosses a common Fibonacci support or resistance level. The user can filter false gap retracement alerts speedtrader pro what stocks to invest in for quick money the percentage of the gap which was filled. This includes our normal algorithm for removing stray prints. Thousands of stocks are quoted and traded every day in U. In this case another consolidation alert will eventually occur, but it will be labeled as "decaying". This algorithm pays more attention to the previous close and minimizes the effects of the opening prices. Recent reports show a surge in the number of day trading beginners. Some traders may buy a stock after it forms an inverse head-and-shoulders and moves above the neckline. Most technical analysis is performed by observing and interpreting charts. The good news is a lot of day trading charts are free. The NYSE imbalance alerts only happen near the end of the trading day. That is reported in the description of the consolidation alert. Unique indicators can be developed only with core elements of chart analysis, while hybrid indicators can use a combination of core elements and existing indicators.
High relative volume is much more precise, looking at only the recent volume today, and comparing it to the normal volume for this time of day. Because of the Covid pandemic and pre-existing issues related to stagnating productivity, aging populations, and high sovereign and corporate debt, EU borrowing will continue to increase […]. It records which index is the best predictor of the stock, and it records additional statistical information about the relationship. For example, you can put in a value of 0. Any number of transactions could appear during that time frame, from hundreds to thousands. Recent reports show a surge in the number of day trading beginners. This acts a lot like a standard stock ticker. In these cases we continue to use the first point, not the last point, to choose a name and icon for the pattern. There is no direct relationship between the confirmed and faster version of these alerts.
Now these alerts have their own alert type, so a user binary options brokers for us residents reddit cms forex trading enable or disable these separately from the running alerts. The description also includes the name of the exchange where the trade takes place, when that information is available. The user can also filter channel breakouts and channel breakdowns based on the quality of the consolidation pattern which was just broken. Wolfe Wave Definition A Wolfe Wave is a pattern used in technical analysis to time trades around a breakout. If you leave this field blank, you will see the most alerts. Neither is a subset of the. This time is measured in "hours of trading". An inverse head-and-shoulders confirms tc2000 easyscan exclude in watchlist ninjatrader tpo a stock breaks out above horizontal resistance, which is also known as the neckline. The minimum value is different for different alerts. Some stocks always have a lot more shares at the NBBO than. After normal market hours, this refers to the current day's close. Each entry signal comes with a forecast of how far the stock will move, in dollars per share. For some stocks no index is appropriate.
This is especially important at the beginning. Using this filter you can increase the period and see fewer alerts. These alerts report when there is a traditional hammer pattern on a what does a long gravestone doji mean tvi indicator candlestick chart. The user can filter these alerts based on the size of the move in dollars. The server will automatically choose which version to display. If we report a large bid or offer size, then the size grows even larger, we typically report another alert. In these cases we continue to use the first point, not the last point, to choose a name and icon for the pattern. These alerts will first report when a stock moves an entire bar off of its last high or low. The good news is a lot of day trading charts are free. Like the times, we only include volume between when the stock was at the first high or low and when the stock was at the last high or low. These alerts work just like the cyclical tech stocks tradestation 10 review pullback alerts, but they always start from today's open, rather than the previous day's close. Learn about strategy and get an in-depth understanding of the complex trading world. And show exactly 41 periods in the chart. When a stock trades a lot near a price level, but never goes below that price, we draw a support line at that price.
The description of the alert will include more information: Running up - This stock price is increasing quickly. In this article, we discussed six of the most common price patterns. For example, when using the breadth thrust indicator which is represented by a line indicating momentum levels , we need to know which levels are relevant. The patterns are typically constructed by combining support and resistance levels. Setting this filter to 1. Trade Forex on 0. By default the user sees all block trades which meet that minimum criteria. The formula watches the 80 and 20 lines to determine overbought and oversold. Below we have collated the essential basic jargon, to create an easy to understand day trading glossary. One example of this is recurring patterns in historical stock prices.
These alerts will typically go off only once at each integer percent level. These alerts appear any time a stock changes between being up for the day, and being down for the day. Mathematical functions can range from price averaging to more complex functions based on volume and other measures. But, they will give you only the closing price. We weight the pre and post market according to volume. Always sit down with a calculator and run the numbers before you enter a position. Recall that the theory behind technical analysis states that financial charts take all things into account—that is, all fundamental and environmental factors. For the Fibonacci retracements, the turning point must be a volume confirmed support or resistance line. See below for details. Each time we add another point to the rectangle, the direction changes. For thinly traded stocks there is not enough historical data to set up a good baseline. We associate this alert with the color green because most traders see a hammer as a reversal pattern. However, if the stock gaps in one direction, then continues to trade in that direction before eventually reversing, that is called a continuation.