最後更新日期：2023年09月08日
As trend traders, we often strive to identify stocks that are currently building momentum, potentially on the verge of generating significant trends. By consistently positioning ourselves in emerging momentum stocks, we can capitalize on the eventual release of accumulated energy, propelling the stock price in the desired direction and leading to significant profits.
So, how can we determine whether a stock is currently building momentum? Or even how is the strength of the accumulated momentum? When momentum is unleashed, in which direction will the stock price move? Or if a trend has already started, is it still viable to buy during a pullback?
Today, Growin is going to introduce you to four exclusive trending indicators, Power Squeeze, Surfing Trend, Earnings Table and Auto Fib Zone.These indicators are designed to enhance your trading capabilities and help you make more informed decisions.
Understanding Exclusive Growin Proprietary Indicators
In addition to providing AI analysis across five dimensions, Growin Stock Mining offers subscribers access to key indicators used for training AI. These proprietary indicators aid investors in making better fundamental and technical judgments. Please see the following for Growin’s four exclusive indicators—Power Squeeze, Surfing Trend, Earnings Table, and Auto Fib Zone.
Introduction to the Power Squeeze Indicator
“Squeeze” is a renowned indicator introduced by the renowned trader John Carter in his book “Mastering the Trade.” Drawing inspiration from the fundamental principles of the Squeeze indicator, our team has evolved it into the “Power Squeeze.”
Power Squeeze enables swift assessment of whether a stock is accumulating energy and gauges the strength of this accumulation. This helps investors pre-position themselves to capitalize on potential explosive energy release, participating in the stock’s swing movement.
Power Squeeze is used to detect whether the stock price is in an accumulative energy state. The colors of the small dots on the horizontal axis represent the intensity of accumulated energy. The energy accumulation signals are categorized as red (strong accumulation), orange (moderate accumulation), pink (minor accumulation), and gray (no energy accumulation). Generally, stronger energy accumulation indicates the potential for a significant trend in the stock price to emerge. An increase in trading volume often signals the possibility of an upward stock price breakout. Conversely, a decrease in trading volume might lead to a downward price breakout.
As shown below, Let’s take the daily chart of MongoDB (MDB) as an example. When the PowerSqueeze consistently displays red and orange dots indicating strong energy accumulation, and the histogram on the indicator are also pointing upwards, it signifies a high likelihood of the stock price moving upwards. Once the accumulated energy is released, it will rapidly propel MDB’s stock price to experience a significant rally.
Introduction to the Surfining Trend Indicator
We often hear a common trading saying, “The trend is our friend until it disappears.” Surfing Trend allows us to continuously ride a trend and identify the moment of its reversal. Whether an investor is going long or short, this indicator can be used for making entry and exit decisions as well as risk control.
It is used to measure the direction of the stock trend. When displayed in green, it indicates a higher probability of a continuing upward trend. Conversely, when the displayed color is red, it suggests a higher probability of a downward trend. For investors going long, it’s important to note a shift from green to red, which could indicate the end of an upward trend. Similarly, for investors going short, watch for a shift from red to green, which could indicate the end of a downward trend.
Using the daily chart of Tesla (TSLA) as an example. When the Surfing Trend shifts from green to red, it indicates the end of the bullish trend and a transition to a bearish trend, with a higher probability of a downward movement. Conversely, when the Surfing Trend shifts from red to green, it signals the end of a bearish trend and a shift to a bullish trend, with a higher probability of an upward movement.
Introduction to the Auto Fibonacci Zone Indicator
Even during the formation of a trend, the stock price does not rise or fall in a straight line. Instead, they exhibit fluctuations up and down along a given trajectory.
Hence, many technical traders study support and resistance levels to assist them in participating in the trend’s movements.. The Fibonacci sequence identifies corresponding support and resistance levels based on the highs and lows of past price swings is one of the most common ways.
However, the challenge lies in manually constructing these levels, which can be time-consuming. This is why Growin offers the Auto Fibonacci Zone indicator. Auto Fibonacci Zone takes the three key Fibonacci numbers: 0.382, 0.5, 0.618, to create resistance and support levels. It differentiates between short-term resistance levels represented by blue channels and long-term resistance levels represented by red channels.
In a downtrend, the blue and red channels usually lie above the stock price. Hence, if the stock price rebounds to this area, it’s considered a resistance level. The price is likely to reverse after touching it. Conversely, in an uptrend, the blue and red channels are typically situated below the stock price. As a result, if the stock price declines to this area, it’s regarded as a support level. It’s probable that the stock price will rebound after coming into contact with this level.
Furthermore, changes in the position of the two channels can also detect if a trend reversal is going to happen or not.
In the example of the Tesla (TSLA) daily chart below, during a downtrend, the blue and red channels are above the stock price. A short-term rebound touching the blue and red channels could be rejected, leading to a reversal into a downtrend. When the blue channel gradually crosses above the red channel and both channels are above the stock price, this indicates a transition from a bearish to a bullish trend. Subsequent pullbacks to the blue and red channels are then seen as support levels, supporting the continued upward movement of the stock price.
The Turning Point Revealed by Fundamental Indicators
Just as a massive rocket requires fuel to ignite its flight, in the same way, when it comes to stocks, apart from referencing technical indicators for buying and selling points, achieving strong and enduring trends resembles the rocket’s trajectory. The incorporation of fundamental analysis can make trend investing smoother. Growin offers the Earnings Table indicator, which is built on a summary of the “Trade Like a Stock Market Wizard: How to Achieve Super Performance in Stocks in Any Market ”. It monitors several key factors including EPS, EPS YoY (Year-over-Year growth), EPS Surprise %, Sales YoY, and Net Profit Margin over the past five quarters. Then visualized with varying shades of colors to represent the extent of performance, whether positive or negative.
- Dark Green: Positive value with outstanding performance
- Light Green: Positive value with average performance
- Red: Negative value with average performance
- Dark Red: Negative value with poor performance
The percentage change in EPS Surprise reflects the variance between the company’s actual performance and the expectations of most analysts. A higher percentage indicates a greater deviation from expectations. The growth in revenue also reflects the attractiveness of the company’s products or services. Additionally, a positive aspect is when the Net Profit Margin (NPM) is positive, indicating that the company is profitable and experiencing a favorable fundamental cycle. Here is an example of MongoDB (MDB):
Of course, with a strong fundamental foundation, we can then use the Trend score breakthrough of 3 points in Growin’s Five Dimensional Analysis as an entry opportunity. Or, we can combine the Power Squeeze indicator to serve as an entry signal.
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