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Setups - Red to Green

Overview​

The Setups - Red to Green profile highlights stocks that opened weak, gapped down, and then fully reversed back above the previous day's close. These are recovery-style setups where failed early weakness can turn into clean long opportunities when volume, structure, and upside follow-through all start to align.

Every result must also meet liquidity, volatility, and strategy-quality requirements, so the profile stays focused on names with a clearer upside path rather than random bounce attempts.

info

This profile updates in real time and applies filters automatically to surface reversal-style long setups after failed gap-down opens. It is most relevant during the regular market session.

Strategy Focus​

  • Capture gap-down reversals where early weakness fails and price reclaims the previous close
  • Focus on long setups with favorable risk/reward and fewer barriers on the way to the projected upside target
  • Prioritize liquid, volatile names that can sustain intraday recovery movement
  • Confirm reversal conditions with volume, momentum, and broader group support
  • Reduce noise by filtering for structured long opportunities instead of every intraday bounce
  • Build watchlists around timely red-to-green reversals that can continue into the close

Filters Applied​

This profile applies multiple layers of filters to keep the results focused on failed gap-down reversals with cleaner upside structure:

  • Liquidity Rating > 70, ATRP 14D ≥ 0.5, Volatility (Month) ≥ 1: Ensures each stock is active enough to support clean entries and follow-through.
  • Volume All Hours ≥ 50K OR Relative Volume ≥ 2: Requires either meaningful total trading activity or unusually strong activity relative to normal levels.
  • AI - Alpha Strategy = Long: Requires MarketAlpha to detect a long-biased setup.
  • AI - Risk/Reward ≥ 2, AI - Path to Target ≤ 1: Keeps only setups with strong upside potential relative to risk and few barriers between price and target.
  • Gap (%) < -1: Requires a meaningful gap down versus the previous close.
  • Last Price > Close -1D ($): Confirms that the gap-down move has fully reversed intraday.

These combined filters keep the profile centered on high-quality red-to-green reversals with cleaner upside structure.

Metrics Used​

Strategy Metrics​

  • AI - Alpha Strategy: Shows whether MarketAlpha currently identifies the setup as long-biased.
  • AI - Risk/Reward: Measures the projected upside relative to the stop.
  • AI - Path to Target: Counts how many important barriers remain between price and the projected upside target.

Price Action and Reversal Context​

  • Change Pre Market (%): Adds context around the early move that contributed to the initial gap.
  • Change From Close (%): Tracks whether the reversal has already pushed decisively back above the prior close.
  • RSI Divergence 14 Days: Helps identify improving momentum or additional bullish reversal context.
  • Universal Pattern Detection: Adds bullish pattern confirmation where relevant.
  • Tight Range: Helps highlight setups where compression preceded the failed move.

Volume and Liquidity​

  • Volume All Hours: Confirms participation across all sessions.
  • Relative Volume: Helps show whether the reversal is supported by stronger-than-normal activity.
  • Dollar Volume Rank: Keeps the most liquid and actively traded names near the top.

Group and Relative Strength Context​

  • Industry Rating 1 Day, Theme Rating 1 Day: Show whether short-term group action also supports the upside move.
  • Industry Rating 1 Year, Theme Rating 1 Year: Add longer-term group context behind the setup.
  • Relative Strength 1 Day, Relative Strength 1 Year: Help compare short-term and long-term strength.

Fundamentals and Timing​

  • MarketAlpha Rating: Composite view of overall technical and fundamental quality.
  • EPS Rating, Sales Rating, Profit Rating: Help show whether stronger business performance also supports the bullish setup.
  • Accumulation/Distribution Score: Tracks institutional flow, where stronger readings can reinforce upside pressure.
  • 52 Week High (%): Shows how close the stock is to its yearly high, helping frame recovery or breakout potential.
  • Next Earnings In Days: Adds timing context around possible catalyst risk.

Default Sorting Logic​

Results are sorted by Dollar Volume Rank (ascending) to keep the most liquid and active red-to-green setups at the top.

Practical Use Cases​

  • Find red-to-green reversals that have already reclaimed the prior close
  • Focus on long candidates with cleaner upside structure and stronger reward-to-risk
  • Monitor failed gap-down opens that are turning into real recovery trades
  • Build watchlists of liquid stocks showing fresh intraday reversal behavior
  • Strengthen long-side review with volume confirmation, group support, and strategy metrics
  • Use Multi-Charts to validate reversal structure, momentum recovery, and upside follow-through