5 minutes after market open, these scanners will alert users of stocks that are expected to downtrend or uptrend for the rest of the day.
The eccentric $600 million dollar man, Martin Zweig, was a world-renowned trader and investor. He was known for being an incredibly strong capital allocator and for owning one of the most expensive pieces of real estate in the United States, the top floor of The Pierre, on 5th Avenue, in New York City.
Oh, yea, he also wrote Winning on Wall Street, a comprehensive book on how to know when to be fully invested in the market (aka get filthy rich by trading stocks).
He has one famous quote in particular that we traders take to heart:
The trend is your friend.
— Martin Zweig
Well, Mr. Zweig, we have created a fully automated scanner to predict intraday trends within the first 5 minutes of the market opening.
The scanners monitor large-cap stocks at the market open, noting their opening price. After the first 5-minute candle has formed following, if the stock’s opening price was the high for the first 5-minute candle, it is predicted to be a downtrend. If the opening price was the low for the opening 5-minute candle, it is predicted to be in an uptrend.
Alerts are then sent into the ScaleTrade Discord server indicating which large-cap stocks should uptrend or downtrend through the rest of the day.
Downtrend Calculation: Opening price = high of 1st 5-minute candle
Uptrend Calculation: Opening price = low of 1st 5-minute candle
Is it really that easy? Actually… yea!
For example, below is a ScaleTrade alert for McDonald’s stock (Ticker: MCD) with an opening price equal to the high of the first 5-minute candle, and it downtrended smoothly throughout the rest of the day.
ScaleTrade, the developer of this trend prediction tool, has also created a trading algorithm based on quantitative strategies.
When pairing ScaleTrade’s algorithm with this trend prediction tool, here’s one way someone could potentially trade a stock that is expected to downtrend (aka has an opening price equal to the lowest price of the opening 5-minute candle).
*Disclaimer: not financial advice 😉*
To get access to this tool, join the Project ScaleTrade Discord server with this link here!
At ScaleTrade, we’re building a community of Traders that informs our team of Engineers/Co-founders which trading tools to build to give retail traders an edge.
We’re doing it all for free, so come join us in Discord!