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Rough Cut

Stock coverage is categorized by the setup that its price action has triggered. These are not necessarily signals, which would require additional filters and further analysis.

The last session’s close is listed, along with its two-day high and two-day low, as a reference to gauge recent volatility.

Rough Cut is raw research, various setups that are vulnerable to sudden and steep trending or retracement. AvidTrader applies several additional filters to further identify the most predictable and reliable.

Each of Rough Cut’s categories describes the particular setup. As is noted above, these setups are only preliminary indications, and do not broadly imply that the setup will resolve in a certain direction or fashion. More work should be applied to identify those patterns that appear to be valid for trading.

Tip: Larger bullish sections than bearish sections – or vice-versa – tend to indicate that the broader market will resolve its current situation in the direction that is indicated by that overwhelming setup.

Tip: If the broader market is forming a pattern that is similar to one of the setups, then those stocks listed in that particular setup will be more likely to resolve in the expected direction.