Earnings Hot Zone
Use time and price to find high probability earnings trades using a calendar based statistical system. Trade pre, during, and post earnings.
We know when earnings are on a calendar; Earnings Hot Zone shows the statistical probability of 'Hot Zones' to trade around earnings.
At a glance, look at the chart over a period of time and get an overall understanding of what has happened, or zoom in to focus on particular zones. Know if a ticker is a high probability trade going into earnings.
The Hot Zone is when to look to start trading earnings.
Labels:
Newly calculated statistical analysis shows probability averages that correspond with color coded clouds or Zones. Important to Danielle was to be able to load and analyze a number of quarters and how many times a ticker beat or missed earnings to understand the probability of that ticker beating or missing earnings in an upcoming report.
Danielle looks to identify hot zones to get into a trade. The Hot Zone tool shows you the probability of an upcoming earnings move and will color the labels green or red if a move is over/under a certain percentage, or yellow if ranging.
Pre and post earnings labels display both percent and dollar value averages for 8 and 21 day moves.
At a glance, look at the chart to get an overall picture of what has happened for a determined period of time, or zoom in to focus on more recent earnings.
Stats are based on the amount of historical data the chart is set to.
Look at as many quarters are you like. Danielle likes to set her daily chart to look at the last 8 quarters by setting her chart to a daily 2 year time frame.
In this example, we analyze 8 quarters by looking at a 2 year chart of JPM.
Days to earnings.
Number of Quarters analyzed is 8 (2 year daily chart).
Ticker beat earnings estimates a total of 7 times.
Total number of times ticker missed earnings, 1 time.
Pre-Earnings 21 day average move as a percent and price.
Pre-Earnings 8 day average move as a percent and price.
Post-Earnings 8 day average move as a percent and price.
Total number of 8 day up moves.
Total number of big 8 day up moves .
Total number of 8 day down moves.
Total number of big 8 day down moves.
Market Maker Move. This is what the market makers are expecting.
Implied volatility 1 day standard deviation move.
Label percentage moves are adjustable.
Hot Zones:
Time upcoming moves at a glance, a ticker's pre and post earnings move performance.
See if you are “in the zone” or “not in the zone” and use the statistical probability of the labels as confirmation.
Hot Zone clouds are color coded green, yellow and red for the price movement of that move. Green up, yellow sideways, red down.
21 and 8 day pre-earnings zones by default. Periods are adjustable.
8 day post earnings zones. Post earnings calculation is different than gap. 8 day post earnings will show post gap to close 8 days later.
Upcoming hot zones are displayed as vertical dashed lines.
Pre-earnings, earnings and post earnings trading zones.
Zones in historical price areas are colored coded.
Gap bubbles:
Calculates Earnings gaps from market close to market open.
Looking at the ticker from when the market closed the day before, to the price at market open you get the gap value for the move of the report.
The Gap bubble will immediately display the gap as a percentage and price.
Price Zones:
MMM and IV 1SD give you a price 'zone' to trade.
MMM = Market Maker Move
What the market makers are expecting the ticker to do.
IV 1SD Move = Implied Volatility of one standard deviation.
MMM and IV 1SD Move labels and range lines will only appear if you are within the 21 day Pre-Earnings Hot Zone.
The Hot Zones give you timing, MMM and IV 1SD Move labels give you a price range for trading the report by showing how much the ticker may move.
Earnings Hot Zone - Settings
About - Earnings Volatility
About - Trend Strength Candles Turbo