Stock Market BUY Signals – Five ways to find bullish trend reversals

You shouldn’t need a PhD to use a stock screener. This post will show you how easy it is to use our Premium Stock Screener to find stocks or ETFs that are seeing a bullish reversal. In other words, having previously established a bearish trend, these stocks are now reversing to the upside, suggesting the beginning of a new bullish trend.

What follows, then, are five ways in which you can use the TradingStockAlerts.com Premium Stock Screener to zero in on reversals.

1. Trade-Radar Reversal Alerts

This is a simple one. Our software has already done the work of identifying those stocks or ETFs that are undergoing bullish reversals based on a combination of linear regression, trend analysis and a few other proprietary techniques.

Just go down to the “Technical Analysis Patterns and Signals” section of the Screener and set the dropdown:

Trade-Radar Reversal Alerts = Bullish Reversal on Daily Chart

Or if you prefer to use weekly data:

Trade-Radar Reversal Alerts = Bullish on Weekly Chart

If you would like to see signals based on daily data and signals based on weekly data all in the same list, just set it this way:

Trade-Radar Reversal Alerts = Bullish Reversal

2. Simple Trend Reversals

Here is another simple one. Our software picks out those stocks or ETFs that have been in a clear-cut down-trend and that have just recently broken above their downward sloping trendline.

Again, just go down to the “Technical Analysis Patterns and Signals” section of the Screener and set the dropdown:

Simple Trend Reversal = Bullish Reversal on Daily Chart

Or if you prefer to use weekly data:

Simple Trend Reversal = Bullish on Weekly Chart

You might get a pretty big list so you will probably want to do some further filtering using fundamental and/or other technical criteria.

3. Trend Performance plus MACD, DMI and the 20-day EMA

Trend Performance Score is one of the proprietary indicators we calculate. It combines Aroon, Wilder’s DMI, MACD and moving average analysis and comes up with a single number that indicates the strength or weakness of the current trend.

Here’s how to use it to find bullish reversals:

Go to the top of the Screener in the section titled “Changes in Technical and Financial Performance” and set the dropdowns as follows:

Trend Performance = Moderately Bearish to Very Bearish
Change in Trend Performance = Strong Bullish Change
Change in MACD = Flipped to Bullish
Change in DMI = Flipped to Bullish
Compare latest data to = should be set to several days ago but you can play with the  setting and see what you get

Then go down to the “Technical Analysis Patterns and Signals” section of the Screener and set one more dropdown:

20-Day Exponential Moving Average = Price 10% above EMA20

4. Trend Performance plus Aroon and the 20-day EMA

This screener preset is similar to the previous one but it uses Aroon instead of DMI and MACD. It yields somewhat different results because Aroon moves more slowly than DMI and MACD.

Again, go to the top of the Screener in the section titled “Changes in Technical and Financial Performance” and set the dropdowns as follows:

Trend Performance = Very Bearish
Change in Trend Performance = Strong Bullish Change
Change in Aroon = Flipped to Bullish
Compare latest data to = should be set to several days ago but you can play with the setting and see what you get

Then go down to the “Technical Analysis Patterns and Signals” section of the Screener and set one more dropdown:

20-Day Exponential Moving Average = Price 10% above EMA20

5. Simple Trend Reversal plus Trend Performance

This last method combines two of the approaches discussed above.
Again, go to the top of the Screener in the section titled “Changes in Technical and Financial Performance” and set one dropdown as follows:

Trend Performance = Moderately Bearish to Very Bearish

Then go down to the “Technical Analysis Patterns and Signals” section of the Screener and set one more dropdown:

Simple Trend Reversal = Bullish on Daily Chart

Summary –

I hope this post has given you some ideas on how to get the most out of the Premium Stock Screener. These five techniques can be combined with other approaches to zero in on stocks that are right for you. For example, if you like dividends, you can add that to the screen criteria. If you only like stocks that are less than $10, you can add that and so on and so on.

Don’t forget, once you have a screen set up just the way you like it, you can save it so you can easily use it each time you visit TradingStockAlerts.com. Furthermore, because screener presets can be shared, you may be able to pick up some interesting approaches that you didn’t think of from other members of the TradingStockAlerts.com community.

More interested in breakouts than in reversals?

If you’re interested in reading more about how to use the Premium Stock Screener, please note that I have also written a couple of posts on how to find stocks that are breaking out from a consolidation pattern. Just check out “Looking for breakouts? Try our new stock screener” or “Another way to screen for breakouts

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