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Pair_trading

Potential Short OpportunityThe PGR/ARMK pair is signaling a Short position at the close of last trading day, supported by (almost) all indicators, suggesting a promising opportunity. ADX: Indicates no prevailing trend. Price: Positioned in the overbought area. Historical test: Shows favorable chances. Correlation: This pair doesn’t stay in the "good" correlation area, but going over historical opportunities, it seems this is not a "no go" on this pair. I must say, this pair involves a higher risk, since the correlation issue, so make sure you understand the risks before making a decision. Want to learn more? www.pairs-trading-strategy.com What to use our indicators? www.pairs-trading-strategy.com
NYSE:PGRShort
by YoavShachak
Trade Recap: MEDP & LSCC - 24/4/24 to 25/4/24Market Context and Indicators (Closing of 23/4/24): Directional Movement Index (DMI): * DI+: 42.59 * DI-: 11.53 * ADX: 19.75 (indicating a weak trend) Stochastic Oscillator: * %K: 94.34 * %D: 98.11 (both in the overbought territory) Correlation: * MEDP & LSCC: 0.8852 (strong positive correlation) Trade Information: MEDP Position: * Position: Short * Entry Price: $415.00 * Exit Price: $406.00 * Duration: 24/4/24 morning to 25/4/24 mid-day LSCC Position: * Position: Long * Entry Price: $70.39 * Exit Price: $72.35 * Duration: 24/4/24 morning to 25/4/24 mid-day Analysis and Strategy: Given the strong positive correlation of 0.8852 between MEDP and LSCC, paired with the overbought levels of %K and %D on the Stochastic Oscillator, we identified a potential reversal opportunity. The ADX at 19.75 suggested a weak trend, which further supported the hypothesis of an imminent price correction. Trade Outcome: * MEDP: Achieved a successful short trade with a profit of $9.00 per share. * LSCC: Achieved a successful long trade with a profit of $1.96 per share. These trades exemplify the effectiveness of leveraging correlation and technical indicators to capitalize on market movements. Key Takeaways: Utilize Correlation: Understanding the correlation between assets can provide insights into potential price movements. Monitor Indicator Levels: Overbought and oversold conditions, combined with trend strength indicators, can highlight profitable trading opportunities. Adapt to Market Conditions: Weak trends, as indicated by ADX, often present good reversal trading opportunities. Stay tuned for more trading ideas and market insights!
NASDAQ:MEDP
by YoavShachak
Pair Trading Idea DUK/XELDUK and XEL have a 84,3% correlation over 60 market days. Applying some of the most popular indicators on the pair DUK/XEL shows an interesting pattern. While XEL has been clearly outperforming DUK since several weeks, a trend reversal seems to occur. DUK might catch up in the coming days and weeks. The daily and the weekly RSI (1st indicator at the top "Ultimate RSI Multi Timeframe"), the Wave Trend Oscillator (2nd one) and the ultimate MACD oscillator (3rd one from the top) reversed recently from their lower ranges. The Squeeze Momentum Indicator (at the bottom) shows a nice divergence, which is also observable on the RSI . The setup is worth being given a shot: Short XEL, Long DUK . The strategy is market-neutral and is profitable when DUK starts to outperform XEL. Follow me to get regular pair trading ideas!
NYSE:DUK
by Optionopedia
Pair Trading Idea JPM/PRUApplying some of the most popular indicators on the pair JPM/PRU shows an interesting pattern. While PRU NYSE:PRU has been clearly outperforming JPM JPM since several weeks, a trend reversal seems to occur. JPM might catch up in the coming days and weeks. The daily and the weekly RSI (1st indicator at the top "Ultimate RSI Multi Timeframe"), the Wave Trend Oscillator (2nd one) and the ultimate MACD oscillator (3rd one from the top) reversed recently from their lower ranges. The Squeeze Momentum Indicator (at the bottom) shows a nice divergence, which is also observable on the RSI. The price action confirmed the reversal in the last days. The setup is worth being given a shot: Short PRU, Long JPM. The strategy is market-neutral and is profitable when JPM starts to outperform PRU. Follow me to get regular pair trading ideas!
NYSE:JPM
by Optionopedia