Today, I'm going to investigate whether or not MarketClub's Trade Triangle technology can predict stock earnings.
To do this I randomly chose 7 stocks that just reported their Q3 earnings. Here are the rules I followed for taking or not taking a position in a stock before a company announced its earnings.
Long And Short Rules
Use the Trade Triangle technology to determine how you would have been positioned in each stock before they announced their earnings. You are looking for uniformity between the monthly and weekly Trade Triangles, i.e. a matching monthly and weekly green Trade Triangle would indicate holding a long position before an earnings announcement. Conversely, a matching monthly and weekly red Trade Triangle would indicate holding a short position before an earnings announcement.
When there is a conflict between the weekly and monthly Trade Triangles, a sideline position is in order. For example, if a monthly Trade Triangle is green and the weekly Trade Triangle is red, it would indicate a sideline position.
Here are 7 stocks that just announced their earnings: Continue reading "Can MarketClub's Trade Triangle Technology Predict Earnings?"