Understanding the Change Previous Day Percent Filter

The "change previous day (%)" filter refers to the difference between the close from the previous trading day to the close from the day before that, measured in percentage. In short, these let you pick stocks which were up or down by a certain amount yesterday. This filter is important for traders who want to analyze price movements over a short-term horizon. It provides insights into how much the price has changed over the span of two trading days, helping traders identify trends or reversals in the stock's price movement.

Change Previous Day Percent Filter Settings

The settings of each Trade Ideas filter are defined in the Window Specific Filters Tab located in the Configuration Window of your Alert/Top List Window.

Here is how to setup the filter in your configuration window:

• Set the min value to 5 to see stocks which were up at least 5% from the previous days close.

Using the Change Previous Day Percent Filter

Several trading strategies can be employed with the Change Previous Day Percent filter. Here are a few examples:

Trend Continuation Trading: In this strategy, traders aim to capitalize on the continuation of an existing trend over a short-term horizon. If there is a significant positive change from the previous day's close to the day before that, traders may interpret it as a continuation of an upward trend. They might consider entering long positions, expecting the trend to persist. Conversely, if there is a significant negative change, traders may consider short positions, anticipating a continuation of a downward trend.

Reversal Trading: Reversal traders aim to identify potential reversal points in the price movement. A significant change from the previous day's close to the day before that may indicate a potential reversal in the price trend. For example, if there was a strong upward trend, but the current day's price is significantly lower than the previous day's close, traders may interpret it as a signal for a potential trend reversal. They might then look for additional confirmation signals before entering a trade in the opposite direction.

Volatility Trading: Volatility traders aim to profit from fluctuations in the price of a stock. Traders may use the change from the previous day's close to the day before that as a gauge of short-term volatility. A significant change indicates heightened volatility, which can present trading opportunities. Traders may enter positions to capitalize on short-term price movements, such as scalping or day trading, taking advantage of the increased volatility.

FAQs

How is the "change previous day (%)" calculated?

• The calculation involves subtracting the closing price from the previous trading day from the closing price from the day before that, dividing the result by the closing price from the day before that, and then multiplying by 100 to express the change as a percentage.

Is the "change previous day (%)" filter used in isolation or in conjunction with other indicators?

• While the "change previous day (%)" filter can provide valuable insights into short-term price movements, traders often use it in conjunction with other technical indicators or fundamental analysis to confirm signals and make more informed trading decisions.

What does "change previous day (%)" mean?

• "Change previous day (%)" refers to the percentage difference between the closing price of a stock from the previous trading day and the closing price from the day before that. It indicates how much the stock's price has changed as a percentage over the two-day period.