The Stock State Indicators act as a full life-cycle, indicating the health of your stock. They are designed to tell you at a glance exactly where any stock stands relative to TradeSmith’s proprietary algorithms.
These signals indicate the current health of the stock (performing well, in a period of correction, or stopped out).
The SSI will tell you one of five things:
|Indicates the stock is performing well and has not corrected below its recent high. If a stock has not yet hit this price, it is still on an uptrend and safe to keep holding it.|
|The stock pulled back into the Yellow Zone but is still trending upwards. This indicates that the position has corrected somewhat below a recent high. It has not yet hit its stop price.|
|The stock pulled back into a Yellow Zone and is moving sideways. The position has corrected somewhat below a recent high. It has not yet hit its stop price. It isn’t trending upwards nor downwards.|
|The stock pulled back into a Yellow Zone and is trending downwards. This indicates that the position has corrected somewhat below a recent high. It has not yet hit its stop price but is moving downward.|
|The stock has hit its SSI Stop Loss and is now in the Red Zone. This indicates that the stock has corrected more than its VQ% below a recent high. The stock is not behaving in a way that is usual based on its historical market trend.|
The Stock State Indicators are designed to give you a quick indicator of the currency performance trend for a given stock. Based on this indicator, you may consider whether you wish to continue to buy, hold, or sell a particular stock. We do not provide investment advice or recommendations with respect to buying, holding, or selling a particular stock, and you are solely responsible for making your own investment decisions. Investing involves substantial risk. We do not make any guarantee or other promise as to any results that may be obtained from using the SSIs.
NOTE: Momentum is a key component of our Stock State Indicator (SSI) system. The Stock State Indicator (SSI) Entry signal is a very conservative signal. It requires a stock to have made a bounce off the bottom of at least one Volatility Quotient (VQ) percentage, and the stock’s trend must be strongly positive.