Skip to content

Trading Style Guidance

Swing Trading

Focus on daily bullish divergences confirmed by green HA candles. Parameters:

stockcharts-screen --color green --period 1d --output results/ha_green.csv
stockcharts-rsi-divergence --type bullish --input-filter results/ha_green.csv --min-price 10 --period 6mo

Combine with volume filter for higher quality: --min-volume 2_000_000.

Trend Continuation

Weekly green HA + absence of bearish divergence can indicate sustained momentum. Monitor RSI staying above 50.

Exhaustion / Reversal Short

Bearish divergence + red HA candle on daily/weekly near prior resistance:

stockcharts-rsi-divergence --type bearish --min-price 50 --min-volume 2_000_000

High Liquidity Focus

Use both price and volume constraints:

--min-price 20 --min-volume 5_000_000

Filters out thin and erratic names.

Conservative Filtering

Increase swing window (7) and RSI period (21) for smoother signals.

Aggressive Scouting

Lower RSI period (9) and swing window (3) for early/premature signals (expect more noise). Use for watchlist generation.

Multi-Factor Intersection

Workflow: 1. Run HA screener (green). 2. Feed tickers into divergence screener (--input-filter). 3. Plot top setups for manual validation.

Manual Validation Checklist

  • Divergence distance (RSI difference > 0.5 confirmed)
  • Price context (support/resistance proximity)
  • Volume trend (expansion on reversal attempt?)
  • Broader market alignment (index direction)

Risk Management Notes

  • Divergence ≠ guaranteed reversal.
  • Use stop below swing low (bullish) / above swing high (bearish).
  • Position size adjusts for volatility (ATR or percentage basis).

Extended Time Window Reference (Merged)

The detailed time window and style guide has been merged here for clarity.

Aggregation Period (--period)

Defines candle size / bar interval: 1m, 5m, 15m, 1h, 1d, 1wk, 1mo.

Lookback Window (--lookback)

Historical data span fetched: 5d, 1mo, 3mo, 6mo, 1y, 2y, 5y, ytd, max.

Custom Date Range (--start / --end)

Use explicit date range for historical backtests; overrides lookback when both provided.

Style Examples

Day Trading (short context):

stockcharts-screen --color green --changed-only --period 1h --lookback 5d --limit 100

Swing Trading (recommended):

stockcharts-screen --color green --changed-only --period 1d --lookback 3mo

Position Trading (long trend):

stockcharts-screen --color green --changed-only --period 1wk --lookback 5y

Multi-Timeframe Workflow

  1. Weekly trend scan → --lookback 1y --period 1wk
  2. Daily timing scan → --lookback 3mo --period 1d
  3. Intersect results and plot charts.

Common Validity Rules

  • Cannot combine --lookback with --start/--end.
  • Default lookback of 1y used if none specified.

Backtest Example

stockcharts-screen --color green --changed-only --start 2024-01-01 --end 2024-03-31 --limit 500

Output Archival

Name output files with parameters for reproducibility (e.g., swing_reversals_3mo.csv).