Trendline bounce
In plain English. Trendline bounce finds strong stocks that have pulled back to a rising trendline the market has already respected several times. The line is drawn by a fixed rule through at least 3 swing lows that are months apart, never by eye. The model triggers when price comes back to that line and Williams %R(14) shows short-term selling is washed out.
Why it works. Higher lows are an uptrend in its plainest form: each dip is bought earlier than the one before. When a line has held three or more times, many traders watch it, so demand tends to gather there. A stock that reaches the line while oversold, inside a trend that passes the full momentum test, offers a low-risk entry with a clear stop.
How to use it. The list ranks setups, it does not give buy signals. Wait for a bounce candle off the line. Place the stop just below it, because a daily close below the line ends the setup.
Drawing trendlines across the universe…