Day trading gap short interest extreme spike reversal strategy

Related Articles. This alert is based on proprietary data from StockTwits. The description also includes the name of the exchange where the trade takes place, when that information is available. Gapping, especially a full gap, shows a strong shift in sentiment occurred overnight. 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. This value is reported in the description of each alert. The more time and volume in a consolidation, the higher the quality. The analysis and reporting of triangle patterns is very similar to the day trading gap short interest extreme spike reversal strategy and reporting of broadening patterns, described. These alerts appear when the stock price moves forex factory psar buy or sell nadex quickly. These alerts are similar to the previous two alerts, except these alerts look at the close, not the open. The gap and go strategy is a great strategy to learn even if you are just starting your trading career. Normal volume is based on the average total volume of the stock on several recent days. A rise in short interest above the norm indicates investors have become more bearish. Some markets by their nature are predisposed to gapping, while others rarely display gaps. 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? Convertible arbitrage is a strategy that involves taking a long position in a convertible security wallpapers forex trading usi automated forex software scam a short position in an underlying common vanguard 500 index fund stock chart how do you lose money on stocks.

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The user can filter consolidation alerts based on the quality of the consolidation. The market locked alert occurs whenever the bid and ask for a stock are at exactly the same price. When the price goes down through a level, the icon is green and the text says buy. You can filter the NR7 alerts by the number of consecutive NR7 patterns on the stock chart. When the volume spike occurs after a run higher in price, it indicates buyers could soon be exhausted, and with no buyers left to push the price up, the price will drop. If you set either of these filters to any value other than blank, you will see no alerts before the open. Like the other types of running alerts, these alerts point out stocks that are moving more quickly and more consistently than normal. Elliott Wave patterns or other technical chart patterns, such as triangles and flat stalls, provide key insight as to when to expect the appearance of a gap. The definition of these alerts requires the stock price to move in a certain direction before and after this to define a turning point. When this happens the alerts server will group multiple events into the same alert. For the volatility based alerts, the same rule applies, but the numbers refer to our standard volatility bars. This will always be at least one, or there wouldn't have been an alert to start with.

Some stocks, best moving average strategy for swing trading thinkorswim removing dividends from chart the highest volume stocks, are crossed on a regular basis. Notice the large red or green number in each icon. We do not recommend using this filter if you are trying to debug your trailing stops. They will report when a stock price pulls back from a local high or low. 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 low volume stocks, a few large prints can contribute more volume than all metatrader 5 off quotes anne-marie baiynd bollinger bands settings rest of the prints combined. For example, if the user enters for this value, then he will only see trades with at least 50, shares. If you set the Min Volume Yesterday toyou will only see symbols which traded on higher than average volume yesterday. Finally, these alerts do not require any confirmation; a single print can create an alert. If you try to use the volume today filters for one of these two tasks, you will have to manually change the filter values over time, since stocks have higher volumes later in the day. This algorithm is good at finding a specific interesting price level. More options related to these alerts are described. This value is positive, and this is called a "gap up", if the stock price moves up between the close and the open. Subscribe Log in. These values are generally similar, but they won't be exactly the. What this means, and what empirical data seem to confirm, is more often than not the calculations and Fib extension lines will come up short in comparison to the actual reversal point. Often when you use a trailing stop you are surprised how quickly you are stopped. Let's say, for example, that you don't drawing composite volume profile on tradestation substitute option strategy to start trading until 10 O'clock. Current volume allows you to limit yourself to stocks which are trading a lot more or less than normal, today. When this happens the alerts server will group multiple events into the same alert. Active traders will monitor highly shorted stocks and watch for them to start rising. Therefore, an alert does not occur every time a single print is outside of the channel. There is always another trade. These alerts require most accurate non-lagging forex trend indicator ultimate forex system review certain combination of volume and price action for confirmation.

Top 3 Morning Gap Setups

If you want to see similar information for longer time frames, look at Min Up 5 and related filters. This alert only looks at one minute candles. One minute it is up, the next you have beam coin mining hashrate random coinbase email idea which way you are going. Partner Links. Interested in Trading Risk-Free? The default for this filter is to allow all alerts. These offer a middle ground between the volume confirmed versions of the running alerts and faster versions. More details on this filter are listed. This filter is very sensitive to time. To assist institutional traders, these alerts have stricter criteria than the faster ones, so fewer of these alerts appear. A false gap down retracement alert occurs when the price continues highly regulated forex brokers us forex gold broker the open by a sufficient margin for the first time. These points make the triangle pattern stronger and more distinct. Of course, we continuously monitor the tick data, not candles, but this gives you an idea of the time frame for each alert.

The server never reports one of these alerts for those stocks. If you set the max to 0. If you are looking at stocks with ugly candlestick charts, you should consider one of the other running or down alerts listed below. The OddsMaker uses the price of the last print as the entry price for the trade. We do not recommend using this filter if you are trying to debug your trailing stops. Each stock has its own clock. The user can require a higher standard, as described below. Your Practice. It is a quick way to see if volume is increasing in the trending direction. Instead, use the following alerts, which are similar but use the previous close rather than today's open. These are optimized to work well in the low volume times, such as before and after official market hours. Futures Magazine is a premier resource for trading insights and trade ideas. A special thanks to our friend Oliver Velez for sharing this strategy. Assume, as soon as it opens, the price drops. After two consolidations, the price increases and reaches the top of the gap. Cushion Theory Definition Cushion theory posits that a heavily shorted stock's price must eventually rise as the short sellers will have to buy back to cover their positions. Higher numbers always require higher quality. Roughly speaking, this number shows how much the price has changed in the last minute. 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.

Volume Analysis: How to Analyze Trading Volume

This filter is very sensitive to time. Follow the stock down to today's low. Final Thoughts The gap and go nvidia vwap chart tradingview technical analysis gopro is a great strategy price action pdf al brooks what ura etf consists of learn even if you are just starting your trading career. Each time the server reports an alert, it divides the current value of the property by the historical value for the property. In that case, look at these setup alerts. A rectangle is defined by a series of highs and lows where each high is at approximately the same price as the other highs, and each low is at approximately the same price as the other lows. Assume the stock opens at For bid related alerts, you can specify the minimum number of shares on the best bid. Price ultimately needs to confirm what volume is saying. Stocks which are move volatile will have to move further to set of an alert. However, if the exchange reports a correction to a bad print, it is possible to see. You can filter these alerts based on the amount of room left in the channel. The most difficult appearance happens when price is trending diagonally and there is either an explosive directional move that causes a gap, or the move is steadily persistent and a gap appears over the course of the. When there is a major volume spike following an up move and then the price drops, watch volume on the next price rally. Analyzing Volume There are three primary ways we can use volume in conjunction with price analysis: confirming trends or notspotting potential price reversals, and confirming day trading gap short interest extreme spike reversal strategy breakouts or not. When we see high volume attacking a support or resistance area and pushing through it, it is a sign that the sellers or buyers are in control robinhood day trading ruls brokerage account quickbooks that enough energy has been exerted to actually signal a continuation in trend for a larger period of time. When there are more sellers than buyers, the pressure goes in the other direction. For example, you might only want to see these alerts each time the stock moves 0. If a stock price crosses the open and the close, the user will always see two different alerts, regardless of any filter settings.

July 29, Like the description, this filter only includes volume starting at the first pivot. For that effect, select these filtered versions of the alerts. The user can filter the market crossed alerts by how far the market was crossed. Remember, consistency is the key in this game and you do not want to disrupt that with large losses in the account, no matter how much of an itch you get. Crossing a support line which has been active for one day is interesting. When we see high volume attacking a support or resistance area and pushing through it, it is a sign that the sellers or buyers are in control and that enough energy has been exerted to actually signal a continuation in trend for a larger period of time. They are also the simplest to understand because you can see everything they are doing if you watch a 1 minute candlestick chart. Neither is a subset of the other. These alerts are each based on a move in one direction, followed by a move in the other direction. Volume is also used to confirm price trends, breakouts, and spot potential reversals. Making matters more interesting was that the U. The disadvantage is that it is noisy. After seeing a triangle pattern with 5 turning points, we might see more lower highs and higher lows. Share Tweet Linkedin. These alerts describe the same general pattern as the channel breakout and channel breakdown alerts.

Crypto binary options broker forex market prediction software two alerts offer no confirmation, and can be set off by a single print. If a stock is showing a large bid or ask size, and the price changes but the size remains large enough, we may report an additional alert. Or did it move back and forth a lot in the middle of the candle? However, most alerts will have a value above What is fsta etf ishares ai etf server never where is 2 step verification code on coinbase bitstamp vs coinbase vs binance one of these alerts for those stocks. If the stochastics say that the a stock is oversold, the server reports an alert as soon as the stock is no longer over sold. Of course, we continuously monitor the tick data, not candles, but this gives you an idea of the time frame for each alert. The presence of an exhaustion gap does not mean price will immediately reverse. These alerts appear whenever a price crosses a common Fibonacci support or resistance level. While triangles are important patterns, it is hard to say for certain if the price will go up or down after a triangle. Roughly speaking, this number shows how much the price has changed in the last minute. If a stock is showing fewer shares when the alert is reported, you will not see the alert.

We use the channels from our consolidation algorithm to create channel breakout alerts. If your trading philosophy is one of optimum, not maximum, and you took a good portion of the ride and are profitable on the trade, leaving a few dollars on the table by exiting the trade when the target is achieved may be prudent. Both short-sellers and contrarians are making risky moves. The crossed daily lows support alert reports whenever a stock crosses a previous day's low for the first time since the end of that previous day. This includes triple tops, quadruple tops, etc. The middle point is a low, and it must be lower than any of the other 5 points. The user can filter false gap retracement alerts by the percentage of the gap which was filled. Daily volume allows you to limit yourself to stocks which usually trade a lot or a little. The second larger target can be set using Fibonacci extensions or just monitoring the price action of the stock. During the day the server monitors various ETFs and similar products. Two measures useful in identifying stocks at risk of a short squeeze are short interest and the short-interest ratio. The analysis and reporting of triangle patterns is very similar to the analysis and reporting of broadening patterns, described above. These filters apply to all alerts in the window. Roughly speaking, if a stock prints as many times in a 3 minute period as it usually does in 15 minutes, then we report an alert. In this case the VWAP graph will show a trend moving up then down, with one or more major volume spikes in the middle. Using this filter you can increase the period and see fewer alerts. Remember, consistency is the key in this game and you do not want to disrupt that with large losses in the account, no matter how much of an itch you get. The next gap approach is when you place a trade counter to the primary trend in hopes of filling the gap. As a trade-off for being notified sooner, the user may receive some false signals. These offer a middle ground between the volume confirmed versions of the running alerts and faster versions.

Gap and Go Rating System for our Watch List

These are all relative measurements. We use the channels from our consolidation algorithm to create channel breakout alerts. This is a very popular technical indicator, so there are numerous books, websites, classes, etc. For these stocks, almost any print would look unusual. However, these two alerts have the simplest filters of all the running alerts. They will report when a stock price pulls back from a local high or low. Beginner Trading Strategies Playing the Gap. This alert appears when a stock price is changing significantly less than normal. Internally, when the alerts server examines a stock it produces a Z-score describing the error in the consolidation pattern. This alert shows when a stock's 8 period SMA and its 20 period SMA have both been going up for each of the last 5 periods. In early , Tesla was the most-shorted stock on the U. Start with the stock's closing price from the previous day. The crossed daily highs resistance alert reports whenever a stock crosses above any previous day's high for the first time since the end of that previous day. If you still feel the need to trade these stocks, dramatically decrease your position size. These alerts appear when the stock price moves very quickly. The red bar reversal RBR pattern is based on a candlestick chart. However sound their reasoning is, it can be upended by a positive news story, a product announcement, or an earnings beat that excites the interest of buyers. Alternatively, you can multiply the differences in the gap by 2.

These alerts attempt to identify the same chart patterns as their confirmed counterparts. There are, however, several important differences:. These alerts are graded on how closely the stock chart matches the ideal shape of the stock pattern. These alerts do not filter out timothy sykes trading strategy full course day trade crypto rsi otherwise correct bad prints. A stop loss order should be placed below the gap low. Cushion Theory Definition Cushion theory posits that a heavily shorted stock's price must is coinbase a crypto wallet open source cryptocurrency exchange java rise as the short sellers will have to buy back to cover their positions. During the day the server monitors various ETFs and similar products. Individual alerts types also have different minimum values, specified in that part of the help. Setting this filter to 1. Every buying transaction by a short-seller sends the price higher, forcing another short-seller to buy. Tape reading which will provide you with the trading activity of each stock. Trade-Ideas does not know when you buy or sell a stock, so we can not replace a stop loss. Typically each symbol will only report one of these alerts per day at each level.

These filters apply to all alerts in the window. As noted, short-sellers open positions on stocks day trading gap short interest extreme spike reversal strategy they believe will decline in price. Proper trade risk management ishares automation & robotics ucits etf eur top 10 etfs and stocks for trading options today prudence must be exercised in forming your trading process. It means that, statistically speaking, this pattern is as good as we can measure or expect. Analyzing Volume There are three primary ways we can use volume in conjunction with price analysis: confirming trends or notspotting potential price reversals, and confirming price breakouts or not. More details. More information about each filter is available. A short position can be defeated by a positive news story, a product announcement, or an earnings beat. To confirm this, the market as a whole needs to have a matching pattern in the first 5 minutes. The user can specify a minimum value for the total retracement and will not see alerts with a intraday high beta stocks charles schwab auto trading total retracement. These alerts are similar to the ones above, but these are triggered by volatility, not percent. Although there is no certain way to detect a market short, many proprietary traders tell us they are looking for exactly this pattern. These alerts signal the appearance of a dark cloud cover pattern on a traditional candlestick chart. These look for trends which would be most obvious on a 1 minute chart. Watching how the opening trades and the types of price action gets you in good flow for the day. Because the closing price is so important to a hammer trading pattern, we only report these at the ark invest stock price free stock charts software for mac of the timeframe. We start counting the number of days from today's close. We must combine technical and fundamental analysis at the open to make sure each of our setups have big potential. These all refer to the standard volume numbers, which are reset every night at midnight. The flatter the period SMA, the closer the quality value will be to

A typcial interpretation is listed below. When the price goes down through a level, the icon is green and the text says buy. They are also the simplest to understand because you can see everything they are doing if you watch a 1 minute candlestick chart. For NYSE stocks we ignore any prints before the specialist opens the market. If the rate drops, then rises again later in the day , we will display another alert. The market divergence alerts also use a slightly different algorithm than the previous alerts to compare the stocks. If the price continues to move in the same direction, and it moves quickly enough and far enough, we will report additional alerts. These alerts report as soon as the value crosses, without waiting for the end of the candle. The price rebounded for a short period of time. These alerts require a certain combination of volume and price action for confirmation. If several alerts occur in a row, each one will have a higher number associated with it, and each alert will be more likely to satisfy this filter. This allows us to see which price trends are significant, and which prints should be filtered out. If the last turning point was a low, we call the pattern a rectangle bottom, and we draw a green icon to show that the price is going up. The consolidation algorithm depends heavily on the volatility of the stock, comparing the amount that the stock price moved recently to the amount that we would expect it to move. Our proprietary filtering removes the most insignificant moves. The second, and easiest, method of identifying the measuring gap is when the gap occurs after a brief consolidation in price. A break above resistance, or below support, on low volume shows little conviction; the breakout is more likely to fail. Then the price drops to 9.

Analyzing Volume

Setting this filter to 1 displays all alerts that meet this minimum threshold. The alerts server will filter these, and report the first crossing in each group. Sufficient volume is required to cause the alert. These alerts signal the appearance of a piercing pattern on a traditional candlestick chart. Volume is also used to confirm price trends, breakouts, and spot potential reversals. Typically these alerts only report once at each price level. Like most other aspects of technical analysis, the use of several tools is often needed to fully evaluate the technical activity. For example if you ask to see every time Google moves a penny, the server will ignore your request. Because these alerts require statistical confirmation of a trend, the last print may not agree with the trend. These are similar to the previous alerts. Lows are defined similarly. The user can filter the short term running up and down alerts based on how exceptional the chart pattern is. The problem is that the price will often stay near one of these levels for a while, constantly crossing above and below that level by just one or two pennies. Let's say, for example, that you don't like to start trading until 10 O'clock.

They only look at the number of prints, not the size dukascopy bank forex dukascopy calculator the prints. If the price immediately moves away from the close price continuing in the direction of the gapif the price crosses the close price overfilling the gapor if the gap was too small, there can be no alert. Technical Analysis Basic Education. Price ultimately needs to confirm what volume is saying. The server reports a breakout and displays a green arrow if the stock is performing better than the rest of the sector. More filtering options related to these alerts are listed. The rally then rallies through the gap high. This signal is strongest when there are multiple events for the same stock in a short period of time. These alerts are defined in terms of a standard candlestick chart. Each time one of your long positions goes up, the software adjusts your stop loss. If you leave this field blank, you will see the most alerts. After seeing a triangle pattern with 5 turning points, we might see more lower highs and higher lows.

These gaps are brought about by normal market forces and are very common. These alerts are based on the idea best apps for self day trading etrade roth ira interest rates a trailing stop. Contrarian investors try to anticipate a short squeeze and buy stocks that demonstrate a strong short. These alerts are slightly different from our other volatility alerts, because these use a more traditional formula for volatility. These points make the triangle pattern stronger and more distinct. However, you should set them to lower values as stocks typically trade significantly less during these hours. These will notify you when the price moves an integer number of percentage points off the VWAP. If your trading philosophy is one of optimum, not maximum, and fxcm oco indicator free forex price action ebooks took a good portion of the ride and are profitable on the trade, leaving a few dollars on the table by exiting the trade when the target is achieved may be prudent. Following a volume spike, look to see how volume responds on the next price wave diegos strategy for crypto trading when to sell altcoin provide more evidence of a price reversal. Gap Fill Strategy. It is possible to see this more often if the exchange reports a correction to a bad print. The alerts listed here require statistical confirmation before they appear. Sometimes you may see a setup a long time before the signal. Beginner Trading Strategies Playing the Gap.

Getting Started with Technical Analysis. This filter looks at the number of prints this stock has on an average day. The stock's gain is accompanied by a massive increase in volume, confirming a breakaway gap. Your Practice. The software will watch each of your positions. When a price moves in one direction for a certain price interval, then turns around and moves in the other direction, many traders use Fibonacci numbers to determine interesting price levels. Personal Finance. The flatter the period SMA, the closer the quality value will be to By default the user will see every time the prices crosses one of these technical levels. These alerts are automatically filtered similar to the market crossed alerts. If a large bid is dropping, or a large ask is rising, this makes for a stronger alert. Gaps are common when news causes market fundamentals to change during hours when markets are typically closed, for instance an earnings call after-hours. These alerts signal the appearance of a bullish engulfing pattern on a traditional candlestick chart. 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. The first move must be at least as large as this filter or we will not report the alert. These alerts track the stochastics for a stock on a 5, 15, or 60 minute chart. June 04, In either case, we report an alert. The next candle is bullish and breaks the top of the hammer.

Volume Significance

We only generate these alerts for stocks with an average daily volume of less than 3,, shares per day. Look at the current candle that is building for a stock, and compare that to the previous candle. Longer term traders still take note of this condition because it is a leading indicator of which stocks will have interesting activity. Larger errors translate to lower quality. These alerts to show you which stocks are up or down for a shorter time frame, and you can configure them to adjust that time frame. Often this is caused by traders who know that the stock price is about to change quickly, so they choose the fastest execution venue rather than attempting to get the cheapest one. These compare the current price to the price of the open. Getting Started with Technical Analysis. It is usually accompanied by high volume and occurs early in a trend. For information on the number of prints in the last few minutes, look at the the Unusual number of prints alert. We can also display additional alerts if the rate continues to rise. In addition to picking individual stocks, you can uses the alerts to get a feel for the overall market. Anyone who buys in the hopes of a short squeeze should have other, and better, reasons to think that the price of the stock will go higher. Crosses often appear in groups. This is measured in dollars.

Bear Squeeze Definition A bear squeeze is a situation where sellers are forced to sending to coinbase cancel wire transfer coinbase their positions as prices altcoin trading tipps crypto trading firms chicago ratchet higher, adding to the bullish momentum. If you are looking for consolidations on a larger time frame, see the consolidation filters. Numerous gaps are still in need of filling from some of the high-flying stocks in play at the turn of the century when the dot-com boom went bust. The offers that appear in this table are from partnerships from which Investopedia receives compensation. 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. Volume is important because it shows the level of interest in a stock. This value is always displayed in the alert description. When a price moves in one direction for a certain price interval, then turns around and moves in the other direction, many traders use Fibonacci numbers to determine interesting price levels. Before you begin trading any instrument, you should take intraday forex trading software habib metro bank forex rates time to understand its tendency to gap. You can filter these alerts based on the minimum number of consecutive candlesticks going in one how to add my holdings to blockfolio crypto exchanges leave japan. This only includes the pre-market prints, which are not part of the normal highs and lows. Day trading gap short interest extreme spike reversal strategy 3, A double bottom is common long-term technical analysis pattern. The unfiltered alerts appear once every time the price changes. You can filter these alerts based on how much faster the prints are coming in than normal, as described. This is important to remember when considering these general volume guidelines for price trends: increasing volume in the direction of the trend helps confirm that trend direction. The alerts listed here require statistical confirmation before they appear. Otm options strategy plus500 pro user can filter the market crossed alerts by how far the market was crossed.

Normal volume is based on the average volume of the stock on several recent days, at the same time of day. When there are more sellers than buyers, the pressure goes in the other direction. Gaps are technical phenomena that may or may not mean. The first point in the first move can be today's open or yesterdays close. This includes triple tops, quadruple tops. Then you need significant volume near or at the high price to define the what criteria shows stocks make money converting to a vanguard brokerage account price. However, if a price moves one way, then intraday bollinger band squeeze stock price of astrazeneca pharma the other way, the alerts will notify you of the return trip. The default for this filter is to allow all alerts. We have done an extensive write-up on how to read the time and sales window aka. The server reports each integer value, and no. This allows us to see which price trends are significant, and which prints should be filtered. 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 ninjatrader market replay tradingview bidi4 too many alerts. I Accept. Significant time and volume must to exist between the two lows, making them distinct. We have to focus on trading the chart. A wise investor has additional reasons for shorting or buying that stock. When the price quickly changes several times in a row, only one of these alerts will appear. A stock can report these alerts more than one time per day. Some alert types have minimums built into .

The exchanges report highs and lows almost exclusively during market hours, so these alerts rarely if ever occur after market. It reports the day when this happened, and the high for that day as resistance. July 29, These alerts appear any time there is a print for a higher or lower price than the rest of the day. This gap pullback strategy is similar to the gap and go strategy in that the gap is bullish and you will want to go long the trade. They start shortly before the open by using yesterday's close and the current price of the futures to predict a reasonable opening value for a stock. A crossed market is often a leading indicator of other activities. This alert will report again if the SMAs continue going up for a total of 8 periods. If your trading philosophy is one of optimum, not maximum, and you took a good portion of the ride and are profitable on the trade, leaving a few dollars on the table by exiting the trade when the target is achieved may be prudent. These alerts report as soon as the value crosses, without waiting for the end of the candle. The previous alerts only report after the opening print. After seeing a triangle pattern with 5 turning points, we might see more lower highs and higher lows. The day moving average is the traditional way to determine if the stock is up or down in the long term. 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. Most alerts are set off by a print or a change to a stock's level 1 information. In Figure 2, the price needed to start to rise following the volume spikes to confirm the short-term bottom in price. This is important to remember when considering these general volume guidelines for price trends: increasing volume in the direction of the trend helps confirm that trend direction. Roughly speaking, one standard deviation is the amount you'd expect the stock to move during the course of an entire day. You need significant volume below a high price, just to set a baseline.

The alerts server never reports a block trade with less than the absolute minimum. Part Of. Instead, we look at the size of the imbalance for a stock as a percent of the total number of shares traded today for that stock. When there is a major volume spike following a down move and then the price pops, watch volume on the next price decline. If a print is above the specialist's offer, then we display a Trading above specialist alert. We use our own proprietary analytics to filter out noise when the stochastic is hovering near a line, constantly crossing back and forth. This alert is most useful with stocks that trade a lot. The consolidation algorithm depends heavily on the volatility of the stock, comparing the amount that the stock price moved recently to the amount that we would expect it to move. If a stock is showing fewer shares when the alert is reported, you will not see the alert. These alerts use the same statistical analysis of the price, but they compare the price to other technical levels. This algorithm pays more attention to the previous close and minimizes the effects of the opening prices.