Jan 4, 2019

Trade Ideas Tooltip – The 52-Week High Alert Type Explained

Written by Katie Gomez

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This is a guest blog post from Alexander Voigt of daytradingz.com. Alexander’s been an active Trade Ideas subscriber since 2009.

Trade Ideas Tooltip – The 52-Week High Alert Type Explained

Many investors view the break of the “52-week high” as an important signal. As the name infers, the 52-week high is the highest price during the last 52 calendar weeks.

Such price breaks are often interpreted as important signals for future price movements showing special strength of an individual stock after breaking out from the previous range.

Day traders use the 52-week high for long strategies, buying stocks at the breakout, as well as for short trading strategies, selling stocks at the breakout.

The important part is that you recognize when the 52-week high gets broken. Nothing is worse than arriving too late, especially in day trading. As a position trader it is also helpful to notice important price breaks as soon as possible.

While most of the free available market scanners out there can show you the value of the current 52-week high, you need scanners with good market data in real time.

Trade Ideas has the right solution for this. Instead of creating long stock watchlists you can scan more than 8,000 stocks for the 52-week high breakout.

In this Trade Ideas Tooltip #1, I will show you how to configure a Trade Ideas alert for the 52-week high.

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  1. Open Trade-Ideas
  2. Open a new Alert Window
  3. There is a pre-configured version, but we build a new one for scratch to define it based on our specific requirements. Start building the strategy with a double click on “Start from scratch.”
  4. Chose the “search” tab, type in the “search term” “New high” and select “new high”. Now hit the “Add Alert” button.
  5. Since we are looking for the 52 week high, we type in “365 days” for 1 full year.
  6. There you have it. You get notified by an alert once a new 52week high is made.
  7. Now you can define your alert type with some additional filters. With Trade Ideas you can use hundreds of filter combinations. Click on the tab “Window Specific Filters” to define your filters.
  8. While you are completely free defining your final strategy, there is one filter that I recommend to use at any time along with the “new 52-week high” scan. It’s the “count” filter.
  9. If you don’t set the “count” filter, you will get notified for each and every time when a new high is made. This can be quiet often during a day. I prefer to get one notification per trading day. This way the alert lists keeps manageable. Here is an example from January 2nd 2019, with 4 alerts within the first 5 hours of trading.

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Simple, efficient and effective. This is only one of the great alert types that Trade Ideas provides. Click here to learn more about Trade Ideas by reading my comprehensive Trade Ideas review. A special offer is included.