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Setups – Red to Green

Overview​

The Setups – Red to Green profile highlights tickers that gapped down but have reversed upward during the session — reclaiming the prior day’s close and triggering AI-confirmed long setups. These candidates also meet specific volume, volatility, and structural criteria for reliable reversals with room to run. The setup is commonly used to capture momentum reversals early in the day.

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This profile is updated in real time and applies filters automatically to surface reversal-style long setups that meet all structural and behavioral criteria. It is designed for use during the regular market session.

Strategy Focus​

  • Identify gap-down reversals where price moves back above the prior close
  • Focus on long setups with a clean path toward the AI-defined upside target
  • Confirm setups using liquidity, volatility, and relative volume thresholds
  • Align with group and theme momentum to strengthen conviction
  • Use pre-filtered structure to reduce noise and scan for efficient recovery entries
  • Build watchlists or review in Multi-Charts to act on reversal momentum

Filters Applied​

This profile applies multiple layers of filters to ensure setups meet structural, behavioral, and volume criteria:

  • Liquidity Rating > 70, ATRP 14D ≥ 0.5, Volatility (Month) ≥ 1: Ensures that each stock is sufficiently liquid and volatile to support clean trade entries and follow-through, especially important for capturing intraday reversals.
  • Volume All Hours ≥ 50K OR Relative Volume ≥ 2: Includes only actively traded tickers. Either high total volume or strong volume relative to historical averages qualifies a ticker for inclusion.
  • AI - Alpha Strategy = Long: MarketAlpha AI must detect a long-biased setup based on structure, trend, and current behavior.
  • AI - Risk/Reward ≥ 2, AI - Path to Target ≤ 1: Only includes trades with a strong potential upside versus downside and few barriers between price and target — important for fast reversal setups.
  • Gap (%) < -1: Ensures that the stock gapped down significantly (at least -1%) versus the previous day’s close, creating the setup for a potential reversal.
  • Last Price > Close -1D ($): Confirms that the gap-down has been fully reversed intraday — a core requirement for any red-to-green setup.

These combined filters ensure that each result is a confirmed intraday recovery setup with volume, structure, and no major resistance overhead.

Metrics Used​

AI Strategy and Setup Quality​

  • AI - Alpha Strategy: Shows AI-confirmed long setup triggered by price behavior and structure
  • AI - Risk/Reward: Evaluates the potential upside versus stop level based on current structure
  • AI - Path to Target: Counts remaining barriers to the upside target — setups with 0–1 are eligible

Price Action and Reversal Behavior​

  • Change Pre Market (%): Captures any early signals that may have contributed to or followed the gap
  • Change From Close (%): Shows intraday reversal strength versus the prior close
  • RSI Divergence 14 Days: Detects reversal potential or trend exhaustion via divergence from RSI — includes status and days since confirmation
  • Universal Pattern Detection: Adds pattern-based support to the reversal signal
  • Tight Range: Helps spot price compression patterns that may release into a strong reversal

Volume and Liquidity​

  • Volume All Hours: Tracks full-session activity across pre-market, regular, and post-market
  • Relative Volume: Highlights unusual volume supporting the move
  • Dollar Volume Rank: Ensures top capital flow names are prioritized

Sector and Theme Context​

  • Industry Rating 1 Day, Theme Rating 1 Day: Highlight groups contributing to upside follow-through
  • Industry Rating 1 Year, Theme Rating 1 Year: Help confirm long-term alignment
  • Relative Strength 1 Day, Relative Strength 1 Year: Offer short- and long-term confirmation of trend support

Fundamentals and Timing​

  • MarketAlpha Rating: Aggregate rating capturing overall strength
  • EPS Rating, Sales Rating, Profit Rating: Identify financially strong candidates that may sustain momentum
  • Accumulation/Distribution Score: Indicates institutional interest supporting the reversal
  • 52 Week High (%): Helps identify room to run after the reversal
  • Next Earnings In Days: Helps assess short-term risk around events

Default Sorting Logic​

Results are sorted by Dollar Volume Rank (ascending) to show the most active, institutionally watched names first. This prioritizes visibility and tradability for real-time reversal setups.

Practical Use Cases​

  • Catch gap-down reversals intraday with strong upside potential
  • Build red-to-green focused watchlists from a filtered, high-confidence dataset
  • Confirm reversal setups with volume, structure, and AI long bias
  • Spot high-liquidity tickers rebounding from early-session weakness
  • Use in Multi-Charts to quickly validate structural setups visually
  • Layer on theme or earnings filters to find the most compelling reversals