SCHW Signals BUY On 3 Hour Chart

The Technical Analysis

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Published: September 12, 2021 at 08:50 PM EDT

On September 9, 2021, Charles Schwab Corporation stock (SCHW) achieved a BUY signal on 4 of our proprietary algorithms indicating near-term upward movement for SCHW. Based on historically similar occurrences, the likelihood of this near-term movement is very high. Although this analysis may be technical, it clearly lays out targets for pending price action for SCHW. The chart of all potential movement is at the bottom of this article.

Multi-Time Frame Algorithm

This algorithm determines when price direction reverses at the same time on the Daily and 3 Hour chart. There are two buy and sell points for this algorithm. An aggressive signal occurs when price direction changes on both charts at the same time. A conservative signal occurs after the second bar confirms price direction has changed. Aggressive signals can happen without conservative signals. Conservative signals only occur when an aggressive signal also occurs at the same time. The signals appear on other time frame charts in the same position a cross-over occurs on the 3 Hour and Daily charts.

Multi-Time Frame Aggressive BUY - SCHW 3 Hour Chart Accuracy

This algorithm accurately identifies BUY points for SCHW on 3 hour charts 97.727% of the time it signals. A successful signal means the equity price moves up at least 0.75% over the next 40 3 Hour bars. When the algorithm properly performs, success is seen at least 2 trading bars after the signal closing price with a median max gain occurring around 27 trading bars after the signal bar. Successful signals see average reversals of 6.905% from the signal bar closing price and median reversals of 5.303%. The equity reverses greater than two percent 84.091% of the time, greater than five percent 55.682% of the time, and moves beyond ten percent 22.727% of occurrences. The signal does not necessarily mean an immediate price reversal will occur. Price reversal is delayed 96.591% of the time. In these instances, the reversals do not obey the signal and begin sizable upward movement for an additional 1 to 12 bars after the triggering signal occurs. This delay can see the equity decline 0.534% to 3.643% beyond the signal closing price of 73.0.

Analysis Based on This Section

Based on the signal closing price of 73.0, the target price is between 75.39 and 79.82 over the next 13 to 35 bars after the signal. However, the equity may first decline toward a price in the range of 70.34 to 72.61 over the first 1 to 12 trading bars.

Multi-Time Frame Conservative BUY - SCHW 3 Hour Chart Accuracy

This algorithm accurately identifies BUY points for SCHW on 3 hour charts 98.63% of the time it signals. A successful signal means the equity price moves up at least 0.75% over the next 40 3 Hour bars. When the algorithm properly performs, success is seen at least 2 trading bars after the signal closing price with a median max gain occurring around 24 trading bars after the signal bar. Successful signals see average reversals of 8.154% from the signal bar closing price and median reversals of 5.4%. The equity reverses greater than two percent 88.356% of the time, greater than five percent 57.534% of the time, and moves beyond ten percent 26.712% of occurrences. The signal does not necessarily mean an immediate price reversal will occur. Price reversal is delayed 97.945% of the time. In these instances, the reversals do not obey the signal and begin sizable upward movement for an additional 1 to 12 bars after the triggering signal occurs. This delay can see the equity decline 0.578% to 4.042% beyond the signal closing price of 73.0.

Analysis Based on This Section

Based on the signal closing price of 73.0, the target price is between 75.58 and 80.88 over the next 12 to 35 bars after the signal. However, the equity may first decline toward a price in the range of 70.05 to 72.58 over the first 1 to 12 trading bars.

Precise Signal

This algorithm combines the occurrence of Chris Moody's SlingShot indicator with my Multi-Time Frame Algorithm above. The frequency of both indicators occurring on their own is somewhat infrequent, however, simultaneous occurrences is quite rare.

Precise Signal BUY - SCHW 3 Hour Chart Accuracy

This algorithm accurately identifies BUY points for SCHW on 3 hour charts 100.0% of the time it signals. A successful signal means the equity price moves up at least 0.75% over the next 40 3 Hour bars. When the algorithm properly performs, success is seen at least 3 trading bars after the signal closing price with a median max gain occurring around 27 trading bars after the signal bar. Successful signals see average reversals of 6.674% from the signal bar closing price and median reversals of 5.187%. The equity reverses greater than two percent 92.308% of the time, greater than five percent 57.692% of the time, and moves beyond ten percent 11.538% of occurrences. The signal does not necessarily mean an immediate price reversal will occur. Price reversal is delayed 96.154% of the time. In these instances, the reversals do not obey the signal and begin sizable upward movement for an additional 3 to 14 bars after the triggering signal occurs. This delay can see the equity decline 0.678% to 3.65% beyond the signal closing price of 73.0.

Analysis Based on This Section

Based on the signal closing price of 73.0, the target price is between 76.1 and 78.14 over the next 15 to 36 bars after the signal. However, the equity may first decline toward a price in the range of 70.34 to 72.51 over the first 3 to 14 trading bars.

Moving Average Convergence Divergence Extrema

This algorithm follows the common moving average convergence divergence (MACD). It signals a BUY when the largest negative divergences begin to reduce. It likewise signals a SELL when the largest positive divergences begin to reduce as well. There are additional factors required for an actual signal to remove false signals.

Moving Average Convergence Divergence Extrema BUY - SCHW 3 Hour Chart Accuracy

This algorithm accurately identifies BUY points for SCHW on 3 hour charts 94.243% of the time it signals. A successful signal means the equity price moves up at least 0.75% over the next 40 3 Hour bars. When the algorithm properly performs, success is seen at least 1 trading bars after the signal closing price with a median max gain occurring around 22 trading bars after the signal bar. Successful signals see average reversals of 7.985% from the signal bar closing price and median reversals of 6.191%. The equity reverses greater than two percent 83.582% of the time, greater than five percent 55.65% of the time, and moves beyond ten percent 24.094% of occurrences. The signal does not necessarily mean an immediate price reversal will occur. Price reversal is delayed 91.684% of the time. In these instances, the reversals do not obey the signal and begin sizable upward movement for an additional 1 to 10 bars after the triggering signal occurs. This delay can see the equity decline 0.9% to 4.335% beyond the signal closing price of 73.0.

Analysis Based on This Section

Based on the signal closing price of 73.0, the target price is between 75.45 and 80.44 over the next 11 to 36 bars after the signal. However, the equity may first decline toward a price in the range of 69.84 to 72.34 over the first 1 to 10 trading bars.

Summarization of Data

Based on all of the historical datapoints, this analysis has settled on the most likely courses of movement. The red boxes in the image below indicate the likely location of a decline if the signal is not immediately accurate. The green boxes likely hold the extent of signal accuracy. The larger boxes contain all movements aligned with historical data. The smaller box is comprised of the likely half of the median historical data. In this instance, half of the historical data shows the stock may first move down between 70.195 and 72.545. This is the small red box. Likewise, half of the historical target end points finish in the smaller green box. In this instance, the target top is likely between 75.515 and 80.13.

Chart displaying Reversals and Targets for SCHW

View this interactive chart on TradingView to see where the stock currently is for this idea.

DISCLOSURE: The algorithms and historical accuracy percentages mentioned in these articles are for reference only. Anything can happen in the future when it comes to market movement. Historical price action is not always indicative of future movement. Just because the signals may have a high degree of accuracy, they can always fail. Traders assume all risk to their assets when investing in short or long-term opportunities.

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