PreMarket_Estimator Portfolio [n_dot]

2 days ago

SOXL ; TQQQ ; FNGU ; SOXS ; SQQQ ; FNGD

Strategy Core Idea:

I focus on stocks that are expected to show significant price movements (gaps) during the premarket, usually due to news or earnings reports. I record the highest price formed during the premarket, and if the price exceeds this level after the market opens, I go LONG. Based on my experience, it’s advisable to exit after a few percentage points of increase, as the premarket boom often corrects itself.

Usage:

The indicator is best used in pairs: Pre_Market_Estimator Single and Pre_Market_Estimator Portfolio.
In this portfolio version, you can set up 6 different instruments, which are displayed stacked vertically on the screen, while the single version monitors only one instrument. The portfolio does not plot charts at the actual price levels but offsets them vertically, displaying the current prices in a label at the end of each chart.

Settings:

• Time point 1: Start of the observation period.
  
• Time point 2: End of the observation period / Start of the trading period.
  
• GAP: is used to adjust the distance between the charts displayed in the portfolio view. This allows you to customize the spacing for better readability and visualization of the monitored instruments.
  

Usage:

• Set the timeframe period to "1m".
  
• Set Time point 1 to the start of the premarket session on the current day (e.g., NYSE: 9:00).
  
• Set Time point 2 to the market open (e.g., NYSE: 9:30).
  

The indicator monitors the highest price during the premarket period, marking it with a blue line.
During the subsequent trading period, if the price exceeds the premarket high, it generates a buy signal marked with a blue plus sign.

Limitations:
The premarket prediction typically provides actionable signals during the first 30 minutes to 1 hour of the trading session. After this, the trend is usually driven by daily market events or news.

To reduce data usage, the portfolio version of the indicator (which monitors 6 instruments simultaneously) only loads the last 24 hours of data (60 * 24 minutes). After this, the chart stops providing signals, and the time points need to be reset.

Additional Use Cases:

This type of breakout monitoring is not only suitable for observing premarket events but can also provide relevant information before major announcements.
For example, in the case of central bank rate hikes:

Set Point 1 to 1 hour before the announcement.
Set Point 2 to the time of the announcement.

I hope this contributes to your success!