A three-layer permission stack: moving averages, a price channel, and weekly levels

Three permissions in order

TradersWeek, as an editorial reading, treats this combination as a sequence of permissions rather than a chart covered in overlays. The first permission is directional. The second is a single-name regime-stack. The third is a close beyond a short price-channel. Weekly support-resistance is brought across from the weekly chart only to show where those closes have historically hesitated.

The archive presents the same order as a working workflow. It does not present the layers as optional decorations.

The index-direction-filter

Overall market direction is first read from a 50-period simple moving average of a broad large-cap exchange-traded fund. That read is the index-direction-filter. The stated premise is that prices trend 60 percent of the time.

Only after that market-level moving-average is in view does the workflow move to individual names.

The regime-stack on individual names

The long-side screen requires daily volume above one million shares, price above the 50-period simple moving average, the 20-period average above the 50-period average, and the 50-period average above the 200-period average. That alignment is the regime-stack for an uptrend candidate.

The short-side screen inverts that stack: price below the 50-period simple moving average, the 20-period average below the 50-period average, and the 50-period average below the 200-period average.

The moving-average here is a lookback average of sequential prices used as a directional baseline and as that stacked regime filter across the 20-, 50-, and 200-period windows.

The price-channel as the close-based trigger

An eight-period simple moving average of highs and an eight-period simple moving average of lows form the trading channel. That band is the price-channel. The stated entry is the first close beyond the outer band, with a protective exit placed just beyond the opposite band.

On high-volume names the protective order is an ask-referenced-stop. It is referenced to the ask rather than the last trade so an isolated print is less likely to force an exit.

How the illustrated names used the channel

In the illustrated Humana uptrend, longs are taken on a close above the eight-period channel and closed on a close below it, except that the position is exited the session before an earnings release. That override is the earnings-flat rule.

In the illustrated National Oilwell downtrend the same channel rules are reversed: shorts are opened on a close below the eight-period channel and covered on a close above it.

Weekly support-resistance as hesitation marks

Weekly support-resistance transferred onto the daily chart marked hesitation or reversal zones at 137.65, 156.56, 166.50, and 182.79 on Humana and at 86.43, 76.66, and 58.41 on National Oilwell. Those prior reaction levels are taken from a weekly chart so longer-horizon pauses can be read against shorter-horizon channel signals.

Editorially, those weekly levels are imported only to mark where channel triggers have historically hesitated. They are not described as a separate entry signal.

The same pairing across chart spans

The 50-period average plus eight-period high-low channel pairing is described as usable from one-minute through monthly charts, after a liquidity screen of more than one million shares a day and a share price above 5 that yields a universe of more than 300 names.

During a multi-month range in the same broad fund between 198 and 212, a late-March scan listed 143 names meeting the uptrend stack and 43 meeting the downtrend stack, with holds described as typically shorter than in trending conditions.