Proprietary Trades

A pullback is a small to moderate drop in a stock price from recent peaks that occurs during an uptrend. When a stock price drops below the lower Keltner Channel, prices are oversold and have a high probability of retracing.

Most often when a stock transitions from State 1 to State 2, the stock is in a temporary pull back. Once the State 2, target 1 has been hit, the stock has a high potential for a reversal. A secondary confirmation used with this signal is a quick price drop. Price drops over a short period of time can be seen as an over-reaction to news or some external market event. Drops that happen suddenly are usually tested by reversals. If the stock has experienced a significant drop over a short period and hit the State 2 target, then there is potential price support and a probable reversal coming in the near future.

Most often when a stock transitions from State 1 to State 2, the stock is in a temporary pullback. Once the State Modeling State 2, target 3 has been hit, the stock has hit Delphian’s most aggressive target price for the pullback. The target 3 price is a strong support area and bullish stocks will usually have a reversal at that support level and continue its original trend higher. Using a secondary confirmation can assist in solidifying a potential price support and the continuation of an uptrend. Correlation with the S&P 500 offers trend analysis that suggests when the S&P 500 is on an uptrend, stocks highly correlated with the index should continue an uptrend as well. The combination of these two signals presents a potential near-term bottom with a typically rapid reversal.

Most often when a stock transitions from State 1 to State 2, the stock is in a temporary pullback. Once the State Modeling State 2, target 3 has been hit, the stock has hit Delphian’s most aggressive target price for the pullback. The target 3 price is a strong support area and bullish stocks will usually have a reversal at that support level and continue its original trend higher. Using a secondary confirmation can assist in solidifying a potential price support and the continuation of an uptrend. Correlation with the S&P 500 offers trend analysis that suggests when the S&P 500 is in an uptrend, stocks highly correlated with the index should continue an uptrend as well. The combination of these two signals presents a potential near-term bottom with a typically rapid reversal.

Often times when a stock transitions from State 1 to State 2, the stock is in a temporary pullback. Once the State Modeling State 2, target 2 has been hit, the stock has a high potential for a reversal. The target 3 price provides a support area and the stock should continue its original trend higher. Using a secondary confirmation can assist in solidifying a potential price support and the continuation of an uptrend. When the stock price drops below the lower Keltner Channel, prices are oversold and have a high probability of retracing. The combination of these two signals presents a potential near- term bottom with a typically rapid reversal.

When a bullish stock transitions from State 2 to State 4 the down move is seen as an overextended pullback. Once the State Modeling State 4, target 1 has been hit, the stock has a high potential for a reversal. The target 3 price provides a support area and the stock should reverse to its original trend higher. Using a secondary confirmation can assist in solidifying a potential price support and the continuation of an uptrend. When the stock price drops below the lower Keltner Channel, prices are typically near a bottom and have a high probability of retracing. The combination of these two signals presents a deep price pullback and an excellent bullish entry point.

Most often when a stock transitions from State 1 to State 2, the stock is in a temporary pullback. Sometimes the stock will continue the downtrend into State 4. Once the State Modeling State 4, target 2 has been hit, the stock has hit one of Delphian’s most aggressive target price for the pullback. The target 2 price is a strong support area and bullish stocks will usually have a reversal at that support level and continue its original trend higher. Using a secondary confirmation can assist in solidifying a potential price support and the continuation of an uptrend. Correlation with the S&P 500 offers trend analysis that suggests when the S&P 500 is on an uptrend, stocks highly correlated with the index should continue an uptrend as well. The combination of these two signals presents a potential near-term bottom with a typically rapid reversal.

State 8 in State Modeling™ is the most bearish state and typically has large downward moves over an extended period of time. Once the State Modeling State 8, target 3 has been hit, the stock has hit Delphian’s most aggressive target price. The target 3 price is a potential support area with a possible reversal ahead. After State 8, a symbol will normally transition into a bullish state. Using a secondary confirmation can assist in solidifying a potential price support and reversal. When the stock price drops below the lower Keltner Channel, prices are oversold and have a high probability of retracing. The combination of these two signals presents a potential bottom with a typically gradual rise over time.

State 8 in State Modeling™ is the most bearish state and typically has large downward moves over an extended period of time. Once the State Modeling State 8, target 3 has been hit, the stock has hit Delphian’s most aggressive target price. The target 3 price is a potential support area with a possible reversal ahead.  Using a secondary confirmation can assist in solidifying a potential price support and reversal. When Relative Strength Index (RSI) has bottomed out at a low and is increasing, buyers typically come into the market. When the 14-day RSI crosses above 30, the signal presents a buying opportunity. The combination of these two signals presents a potential bottom with a typically gradual rise over time.

The Delphian iTrend Very Bullish is comprised of two signals, the DI histogram and the relative strength index (RSI). The DI histogram uses a 13 day move that has crossed above zero and is currently greater than 10. The 3 day RSI must be greater than 70, but less than 85. Once both signals have been triggered on the same trading day, the iTrend Very Bullish signal is active. The combination of these two signals presents an increasing or rising stock price based on a +DI, that is near being oversold based on RSI, but still has potential to push higher.