Trade Ideas Blog

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

Jan 25, 2019

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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.

In the last Trade Ideas Tooltip, I explained the “new 52-week high alert type“. Of course, there is also a scan for the “new 52-week low” available which is an important signal for many short term investors looking to sell stocks short.

There is a major difference on how the 52-week low is being used between long term traders and short term traders. Long term traders and investors usually place their long term position stop below the current 52-week low. In case the stock price is falling below that level, the open position gets closed.

The 52-week low is also very interesting for day traders. You may often hear, “Hey, watch this price level closely for short opportunities during the trading day.”

Why? A new 52-week low is a sign of weakness, especially when it happens to a particular stock while the whole market is up. It can be very interesting to watch this price level for high volume, high volatility and good entry & exit points.

As I mentioned before, long term traders tend to use the 52-week low as stop loss. And long term traders might have big positions that are getting stopped out at this price level causing some serious movement in the market. That’s when short term traders come into play. They can use the volatility phase to make fast extra profits.

The biggest challenge is to find those setups in real time. There is nothing more boring than watching hundreds of charts scanning the market manually. Again, Trade Ideas has a solution for this.

How do you setup the 52-week low alert type scan within Trade Ideas Pro?

In this Trade Ideas tooltip #2, I will guide you through the simple setup process. Moreover, I will show you some additional features you can combine with your 52-week low alert type. Plus: I will show you how to revert a “new 52-week high alert type” into a “new 52-week low alert type” and vice versa with just one mouse click.

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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 low” and select “New low”. Now hit the “Add Alert” button.
  5. Since we are looking for the 52 week low, we type in “365 days” for 1 full year.
  6. There you have it. You get notified by an alert once a new 52week low 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 entirely free defining your final strategy, there is one filter that I recommend to use at any time along with the “new 52 week low” scan. It’s the “count” filter.
  9. If you don’t set the “count filter”, you will get notified for every time when a new low is made. This can be quiet often during a day. I prefer to get one notification per trading day. This way the alert list keeps manageable. Here is an example from January 7th, 2019 with 4 alerts within the first two hours of trading.

 

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Pro-Tip: Trade Ideas is my favorite stock screener for many reasons. One reason is that it is so unbelievable efficient in terms of platform handling and strategy testing. In the first Trade-Ideas Tool Tip I have shown you how to configure the 52-week high alert type. If you already configured this alert, then you do not have to accomplish the whole configuration I have shown you above for the 52-week low scan. Why? Because you can do this with one single mouse click.

Let’s assume that you already configured the 52-week high scan.

Open the configuration window (right click on your alert window).

Your summary tab should look similar like this:

Now just hit the “flip” button at the bottom right corner.

Here you go. The strategy was flipped and the Alert Config Window shows you:

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  1. The window name with the word “Flipped” at the beginning
  2. The new alerts that are being set (now “New low”) and
  3. The changed Items.

    Hit the OK button at the bottom left, and you are all set.

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Again: 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.

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