Signal Guide

Learn how to read TradeBlink signals, understand technical indicators, and build a consistent swing trading approach. All signals are based on price action and volume — no guesswork.

Important: TradeBlink signals are for educational and informational purposes only. Always do your own research and never risk money you cannot afford to lose. Past signal performance does not guarantee future results.
📡 Signal Types Explained
BREAKOUT Price Breakout

A breakout occurs when a stock's price moves above its recent high (20 or 50 day) with strong volume. This signals that buyers have overcome resistance and momentum is building. We require the breakout to be fresh (within 3 days) and the price to be within 15% of the MA20 to avoid chasing extended moves.

Required conditions

Price breaks above 20-day or 50-day high
Volume at least 1.5x the 20-day average
Price above MA200 (long-term uptrend)
Strong close (price in top 40% of day's range)
Breakout is fresh — happened within last 3 days
Trading tip: Look for breakouts from tight consolidation bases. The longer a stock has been consolidating, the more powerful the breakout. Use the breakout day's low as your stop loss.
TREND EMA Crossover

A trend signal fires when the EMA20 crosses above the EMA50 — a classic signal that short-term momentum is overtaking medium-term momentum. This is a high-probability setup when the stock is also above its MA200, confirming a longer-term uptrend.

Required conditions

EMA20 crosses above EMA50 (within last 5 days)
Price above MA200
EMA20 is rising for at least 3 consecutive days
Trading tip: Enter on the day of the cross or the next day. Stop loss below the EMA50. Target the next resistance level. Works best in bull markets.
SQUEEZE Bollinger Band Squeeze

A squeeze happens when Bollinger Bands compress tightly — meaning volatility has dropped significantly. This typically precedes a large move. When the price then breaks out above the upper band with volume, it signals the start of a new trend.

Required conditions

Bollinger Bands compressed by at least 40%
Price closes above upper Bollinger Band
Volume at least 1.3x average
Trading tip: Squeezes can break either direction. Always wait for the price to close outside the band before entering. The tighter the squeeze, the bigger the potential move.
REVERSAL Mean Reversion

A reversal signal identifies stocks that have sold off sharply but remain in a long-term uptrend. These are potential bounce opportunities where the stock has become oversold and is likely to recover toward its mean (average price).

Required conditions

Price dropped 8%+ in the last 5 days
RSI below 35 (oversold)
Still above MA200 (long-term uptrend intact)
High volume on down days (capitulation)
Trading tip: These are counter-trend trades — higher risk. Use smaller position sizes. Look for a reversal candle (hammer, bullish engulfing) before entering. Tight stop below recent low.
MOMENTUM Momentum Surge

A momentum signal identifies stocks with exceptional recent price and volume acceleration. The scoring system rewards stocks that are moving fast in the last 5 days, with rising volume, in a strong trend. These are high-energy setups but require careful timing.

Required conditions

Up at least 3% in the last 5 days
Volume 1.3x average over last 5 days
Composite momentum score above 45/100
Price at least $10 with 300k+ daily volume
Trading tip: Momentum stocks can overshoot significantly. Don't chase — wait for a small pullback to enter. Use a trailing stop to let winners run.
BOUNCE MA20 Bounce

A bounce signal fires when a stock that has been in an uptrend pulls back to touch the MA20 and then bounces back up with volume. This is one of the cleanest and most reliable setups in swing trading — you're buying at support in an established trend.

Required conditions

Stock was above MA20 for at least 8 of last 15 days
Price touched within 2% of MA20 in last 3 days
Now bouncing — closing above MA20
Volume 1.3x average on the bounce day
Price within 8% of MA20 (fresh bounce)
Trading tip: This is the lowest-risk signal. Stop loss just below MA20. The risk/reward is excellent because your stop is tight and the trend is established. Best signals have MA200 also rising.
📊 Technical Indicators Guide
RSI
Relative Strength Index

Measures the speed and magnitude of price changes on a scale of 0-100. Shows whether a stock is overbought or oversold relative to recent price history.

Above 70 — Overbought, potential pullback
55–70 — Bullish momentum zone
45–55 — Neutral
Below 30 — Oversold, potential bounce
MACD
Moving Average Convergence Divergence

Shows the relationship between two moving averages. The histogram shows momentum — positive and growing means accelerating bullish momentum.

Bullish — MACD above signal, histogram positive
Recovering — Histogram positive, MACD negative
Bearish — MACD below signal, histogram negative
ADX
Average Directional Index

Measures trend strength regardless of direction. A high ADX means a strong trend (up or down). Low ADX means choppy, range-bound price action.

Above 25 — Strong trend, follow it
20–25 — Developing trend
Below 20 — No trend, avoid breakout trades
ATR
Average True Range

Measures daily price volatility in dollar terms. Use it to set realistic stop losses and profit targets. A stock with ATR of $5 moves $5 on average per day.

Above 3% of price — High volatility, wide stops needed
1.5–3% — Normal volatility
Below 1.5% — Low volatility, tight stops possible
Fibonacci
Fibonacci Retracement Levels

Key price levels where stocks often find support or resistance during a pullback. Based on the Fibonacci sequence found throughout nature. The 61.8% level (golden ratio) is the most important.

38.2% — First support in strong uptrend
50.0% — Halfway retracement
61.8% — Golden ratio, strongest support
78.6% — Deep retracement, trend weakening
Sharpe Ratio
Risk-Adjusted Return

Measures how much return you get per unit of risk. Higher is better. A Sharpe of 2.0 means the stock returned twice its volatility — excellent. Used to compare different trading opportunities.

Above 2.0 — Excellent risk/reward
1.0–2.0 — Good
0–1.0 — Average
Below 0 — Losing money on risk-adjusted basis
📖 Trading Glossary
Moving Average (MA)
Average closing price over a set number of days. MA50 = 50-day average. Acts as dynamic support/resistance.
EMA vs SMA
EMA (Exponential) gives more weight to recent prices. SMA (Simple) weights all days equally. EMA reacts faster to price changes.
Support
A price level where buying interest has historically been strong enough to stop price from falling further.
Resistance
A price level where selling pressure has historically prevented the price from rising further.
Golden Cross
When MA50 crosses above MA200. A major bullish signal used by institutional investors. Often starts a new bull phase.
Death Cross
When MA50 crosses below MA200. A major bearish signal. Often precedes or confirms a bear market.
Volume Spike
Unusually high trading volume (2x+ average). Often signals institutional activity and precedes significant price moves.
Swing Trading
Holding stocks for days to weeks to capture a price swing. Intermediate between day trading and long-term investing.
Stop Loss
A predetermined price at which you exit a trade to limit losses. Essential risk management tool.
Risk/Reward
Ratio of potential profit to potential loss. A 3:1 ratio means you risk $1 to make $3. Aim for at least 2:1 on every trade.
Bollinger Bands
Bands plotted 2 standard deviations above and below a moving average. Narrow bands = low volatility (squeeze). Wide bands = high volatility.
Capitulation
A sharp sell-off with very high volume where remaining holders give up. Often marks the bottom of a decline before a reversal.
TradeBlink — Stock signals for swing traders. Data by Tiingo. For educational purposes only.