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2019issue C1044-45

Sector-filtered candlestick scans and predrawn stops

A historical screen first classifies index and sector trends, then isolates names that move with those shifts. Candlestick hits, exhaustion flags, and opening-gap readings stay unfinished until extra rules and a plotted stop-loss are in place.

  • A three-stage screen classifies index trends, then trends in selected ETFs, industry groups, and stocks as leadership rotates, then isolates names that move with those sector shifts.
  • Two of four scan rules require specified candlestick formations plus confirming trend and momentum before a directional marker is placed. Other columns flag exhaustion or classify an opening gap.
  • A scan hit is not an entry. Additional criteria must still be met, and a qualified idea plots the stop-loss with the entry and target before the setup is treated as triggered.
  • Sector-alignment keeps a name only when its short-, medium-, or long-term direction already matches the parent group's revision.
Entries in this reading3 entries
Current trackCandlestick patterns100 readingsStop-loss order144 readingsRule-based entry174 readings

Classify the parent trend first

A screening sequence runs in three stages. It classifies short-, medium-, and long-term trends in selected indexes. It then classifies trends in selected ETFs, industry groups, and stocks as leadership rotates. It then isolates names that move with those sector shifts.

The sector-and-industry roster covers 14 symbols and changes a name's color when a trend revision appears versus the prior session. A filled circle background marks a trend revision since the prior session, and an arrow inside each circle states short-, medium-, or long-term direction. A name is kept through sector-alignment only when its short-, medium-, or long-term direction already matches the parent group's revision.

Four scan columns, four unfinished readings

Two of four scan rules require specified candlestick formations plus confirming trend and momentum conditions before a directional marker is placed next to the symbol. Candlestick patterns here are OHLC formations read with trend and momentum so a repeatable chart condition becomes a directional signal, not an automatic order.

A third scan marks extreme overbought or oversold exhaustion with a diamond and frames that state as a possible reversal setup. That exhaustion-marker is a flag for extreme overbought or oversold conditions used to frame a possible reversal, not to force a trade.

A fourth scan is an opening-gap-test. It reads the first five or 10 minutes of the session and posts a single arrow if a gap is expected to fill that day or a double arrow if it is not.

Choosing a scan column applies the rule across a database of more than 700 stocks, ETFs, and indexes, and each symbol chart can overlay that scan's hits for any window in the prior two years.

Index and sector returns across one year, one month, and one week

Energy is the clear one-year laggard at about minus 17 percent, while transports, real estate, staples, and retail lead. Almost every group is positive over the past month, so that Energy gap is a longer-horizon story rather than a one-week dip. Real estate is the notable one-week pullback. Heights were read from the grouped performance bars in the sector panel; the review never prints a numeric table.
Energy is the clear one-year laggard at about minus 17 percent, while transports, real estate, staples, and retail lead. Almost every group is positive over the past month, so that Energy gap is a longer-horizon story rather than a one-week dip. Real estate is the notable one-week pullback. Heights were read from the grouped performance bars in the sector panel; the review never prints a numeric table.SPY, QQQ, TLT and U.S. sector ETFs · 12-month, 1-month, and 1-week changes as of late June 2019 · 2018-06-01T00:00:00.000Z to 2019-06-30T00:00:00.000Z

Read from the late-June 2019 screenshot of the product's sector-performance pane. Values are approximate to the nearest percent because the source does not tabulate the bars.

Turn a hit into an entry, a wait, or a pass

Rule-based entry is one procedure that converts a scan hit into an entry, a wait, or a pass only after market-state and qualification filters are also met. The scan column supplies a candidate. The rest of the procedure still has to confirm that the name remains aligned and that the extra criteria hold.

Draw the stop before the setup is live

A stop-loss is a loss bound plotted with the entry and target so exposure is capped before a qualified setup is treated as triggered. A qualified Intuit trade-idea chart plotted an entry line, a target, and a stop-loss so the risk bound existed before the setup was treated as triggered.

Educational research material, not investment advice. Historical source context does not establish present-day performance.
54 of 54 in the Candlestick patterns track
1992Track finished · Next track: Chaikin oscillatorFitting oscillator parameters to stock personality18 readings
All readings on this track · 54 readings
  1. 1990Constructing three-session rally and reaction volume signals
  2. 1991Constructing candlestick real bodies and multi-session patterns
  3. 1991Treat a candlestick reversal as incomplete until %D confirms it
  4. 1991Filtering candlestick signals with stochastic percent-D
  5. 1991Constructing compressed candlestick summaries
  6. 1993Intraday candlestick confirmation with oscillators
  7. 1993Candlestick hypotheses from a 1993 reading list
  8. 1994License candlestick signals with oscillators and weekly vetoes
  9. 1995Real-body support, resistance, and close-through breakouts
  10. 1997Weekly reversal as a three-part hypothesis
  11. 1998Turning fear levels into testable rules with a psychological matrix
  12. 2000Evaluating three-bar reversal reliability
  13. 2000Prior-day candles, open confirmation, and same-session stops
  14. 2000Intraday candlestick volume confirmation for daytrading
  15. 2001Count the key reversal up before coding a mechanical exit
  16. 2001Rising and falling three continuation candle construction
  17. 2002Treat a moving average as a contested fence
  18. 2003Candlestick signals need support and a risk-reward screen
  19. 2003Constructing one-day reversal tops and bottoms
  20. 2003Chart sentiment as a regime filter for hourly stochastic entries
  21. 2004Confirming index reversals with candlesticks, stochastics and averages
  22. 2004The harami inner close as a reversal barometer
  23. 2004Constructing a true-range volume power-shift filter
  24. 2005Weighing reversal clusters against moving-average support
  25. 2005Candlestick exits confirmed by overbought stochastics
  26. 2005Confirming piercing patterns with stochastics and moving averages
  27. 2006Candlestick cluster exits confirmed by overbought stochastics
  28. 2007Three black crows become a trade hypothesis only after regime, trend and nearby levels
  29. 2008Asymmetrical RSI lookbacks for divergence and candle confirmation
  30. 2008A permission checklist for the end of a trend
  31. 2010Mechanical entries still need confirmation gates
  32. 2010Crude oil as a case study in candlestick session reading
  33. 2010Gold weekly candles and the thousand resistance breakout
  34. 2010A three-layer gold chart drill from waves to candle confirmation
  35. 2011Why entry scans fail without trend filters
  36. 2011Price-zone oscillator trend-regime rules
  37. 2011A candlestick checklist before commodity entries
  38. 2013Step candle construction at price turning points
  39. 2013Two-bar step-candle construction
  40. 2014Small-range bars as a timed volume-climax hypothesis
  41. 2014Constructing volume-scaled candlestick charts
  42. 2015Weekly range midpoints as support and resistance
  43. 2015Constructing weekly body-midpoint pattern codes
  44. 2015Evaluating encoded candlestick sequence hypotheses
  45. 2015Constructing a breakout relative-strength index from two-day range candles
  46. 2016A three-gate classroom on hourly sterling
  47. 2016Fibonacci retracement as a pre-commitment stop map
  48. 2017Nine-zone filter for decade-level breakouts
  49. 2017Constructing pin-bar and inside-bar setups
  50. 2017Two-bar soldier and crow rules become a system only after filters and exits
  51. 2017Confirm a one-white-soldier or one-black-crow before entry
  52. 2018Session control from marubozu and engulfing geometry
  53. 2019Volume, acceleration, and candle filters on a completed double bottom
  54. 2019Sector-filtered candlestick scans and predrawn stops
By fieldEntry and exit rules206 readingsBy year201975 readings
All 100 readings tagged Candlestick patterns
Also on Candlestick patterns5 readings
2000Prior-day candles, open confirmation, and same-session stops2001Count the key reversal up before coding a mechanical exit2004Candle diagnosis needs Western targets and stops2016Fibonacci retracement as a pre-commitment stop map2017Constructing pin-bar and inside-bar setups